NHPC Limited has recently experienced fluctuations in its share price, attracting attention from investors. As of October 21, 2024, NHPC’s share price is ₹81.80, reflecting a decrease of ₹2.33 (or 2.77%) from the previous trading session. This article analyzes the recent changes in NHPC’s share price, expert opinions on whether to buy, hold, or sell, and an overview of the company’s financial health.
NHPC Share Price in Today’s Market
In today’s trading session, NHPC opened at ₹84.50 and reached a high of ₹84.55, while dipping to a low of ₹81.65. The stock’s decline from a previous close of ₹84.13 indicates a bearish sentiment among investors. The trading volume has been substantial, with approximately 16 million shares exchanged, showcasing active market participation.
NHPC Share Financial Overview
NHPC’s financial metrics reveal a mixed performance amid recent price changes. The company boasts a market capitalization of around ₹82,419 crore and an enterprise value of ₹110,818 crore. The P/E ratio stands at 23.93, suggesting that the stock is trading at a moderate valuation relative to its earnings potential. The company reported an EPS of ₹3.43, but it has faced challenges with sales growth declining by 9.78% and profit growth down by 2.34%, indicating operational difficulties.
NHPC Share Pros & Cons
Pros:
→ Dividend yield of 2.26%, providing some income for investors
→ Strong promoter holding at 67.4%, indicating confidence from major stakeholders
→ Solid cash position with ₹992.51 crore available
Cons:
→ Declining sales growth may raise concerns about long-term sustainability
→ High P/E ratio may deter value-focused investors
→ Significant debt levels at ₹29,390.99 crore could impact financial flexibility
Indiahood Recommendation on NHPC Share: Buy or Sell?
Based on current market dynamics and financial performance, Indiahood recommends that investors consider holding onto NHPC shares for now. While the company shows potential for recovery given its strong dividend yield and promoter confidence, recent operational challenges warrant caution before making new investments.
Others Recommendation on NHPC Share: Buy or Sell?
Expert opinions on NHPC shares are varied:
→ ICICI Direct maintains a ‘hold’ recommendation, emphasizing the need to monitor the company’s operational performance closely given recent sales declines.
→ Motilal Oswal Financial Services suggests buying on dips due to the strong fundamentals and attractive dividend yield.
→ HDFC Securities recommends holding shares while watching for any positive developments in upcoming quarterly results.
→ Zerodha advises investors to keep an eye on market trends and upcoming announcements that could impact the stock’s performance.
→ Equity Pandit recommends a cautious approach, suggesting that investors wait for clearer signals before making significant moves.
Conclusion
In conclusion, while NHPC presents opportunities within the power generation sector with its solid dividend yield and promoter confidence, its recent operational challenges necessitate careful consideration from investors. Holding shares may be prudent until clearer signals emerge regarding the company’s recovery trajectory.
Disclaimer
This article is intended for informational purposes only and does not constitute financial advice. Investors should conduct their own research or consult with a financial advisor before making investment decisions regarding NHPC shares or any other securities.
