NHPC Ltd. is a leading player in the Indian hydropower sector, focusing on the development and operation of hydroelectric power projects. As of October 11, 2024, the NHPC share price is ₹90.39, reflecting a decrease of 0.46% from the previous trading session. The stock opened at ₹90.62 and has seen a trading volume of over 4.47 million shares so far today.
NHPC Share Price in Today’s Market
In today’s trading session, the NHPC share price reached a high of ₹91.25 and a low of ₹90.00. The current market capitalization stands at approximately ₹90,947.75 crore, underscoring its significant presence in the energy sector.
NHPC Financial Overview
NHPC has an enterprise value of ₹1,19,346.23 crore and approximately 1,004.50 crore shares outstanding. The company’s P/E ratio is reported at 26.4, while its P/B ratio stands at 2.38. Recent financial reports indicate a sales growth rate of -9.78% and a profit growth decline of -2.34%. With cash reserves of ₹992.51 crore against total debt amounting to ₹29,390.99 crore, NHPC demonstrates a mixed financial outlook.
NHPC Share Pros & Cons
Pros:
- Stable Market Position: As a government-backed entity in the hydropower sector, NHPC benefits from strong regulatory support and demand for renewable energy.
- Dividend Yield: With a dividend yield of 2.09%, it offers income opportunities for investors.
- High Promoter Holding: A promoter holding of 67.4% reflects confidence in the company’s future prospects.
Cons:
- Declining Sales Growth: A sales growth rate of -9.78% indicates potential challenges in revenue generation.
- Profit Decline: A profit growth decline of -2.34% raises concerns regarding operational efficiency and financial health.
- High Debt Levels: With total debt amounting to ₹29,390.99 crore, the company faces financial strain that could impact future growth.
Indiahood Recommendation on NHPC Share: Buy or Sell?
Considering the current market conditions and the fundamentals surrounding NHPC Ltd., it is advisable to hold your position for now while monitoring market trends closely. Investors should wait for clearer signals before making new investments.
Conclusion
In summary, while the recent decrease in NHPC’s share price may raise concerns among investors, its stable market position and dividend yield provide compelling reasons to consider holding onto this stock. However, significant challenges related to declining sales and profitability must be addressed before considering new investments. Investors are encouraged to stay informed about upcoming developments in the energy sector to make informed decisions.
Disclaimer
This article is for informational purposes only and should not be considered as financial advice. Always conduct your own research or consult with a financial advisor before making investment decisions.
