As of December 1, 2024, NHPC Limited has experienced a decline in its share price, currently trading at ₹81.70, reflecting a decrease of ₹1.81 or 2.17% from the previous trading session. Investors are evaluating whether to buy, hold, or sell their shares in this leading hydropower generation company, which plays a crucial role in India’s renewable energy landscape.
NHPC Share Price in Today’s Market
In today’s market, NHPC shares opened at ₹83.55 and reached a high of ₹83.74 before hitting a low of ₹80.90. The stock closed at ₹81.70, down from its previous close of ₹83.51. The trading volume was substantial, with over 25.19 million shares exchanged, indicating strong investor interest despite the decline.
NHPC Share Financial Overview
NHPC’s financial health is characterized by a market capitalization of approximately ₹81,806 crore. Key financial metrics include:
- Enterprise Value: ₹110,205.24 crore
- P/E Ratio: 28.26
- P/B Ratio: 2.11
- Book Value (TTM): ₹38.53
- Promoter Holding: 67.4%
- EPS (TTM): ₹2.88
- Sales Growth: -9.78%
- Profit Growth: -2.34%
Recent News of NHPC Share
Recent developments surrounding NHPC have been noteworthy:
- On November 29, 2024, NHPC’s stock declined by approximately 2.17%, reflecting broader market trends and investor sentiment.
- The company reported a sales growth decline of -9.78%, indicating potential challenges in demand or operational efficiency.
- Analysts have pointed out that the stock remains below its 52-week high of ₹118.40, suggesting potential for recovery if market conditions stabilize.
NHPC Share Pros
Analyzing the potential of NHPC shares reveals several positive aspects:
- Strong Promoter Holding: With promoter holding at 67.4%, there is significant confidence from major stakeholders regarding the company’s long-term prospects.
- Stable Dividend Yield: The dividend yield of 2.33% provides a steady income stream for investors, making it an attractive option for income-focused portfolios.
- Solid Book Value: The book value of ₹38.53 indicates that the company has substantial assets backing its shares, providing a safety net for investors.
NHPC Share Cons
On the other hand, there are several concerns regarding NHPC shares:
- Declining Sales Growth: A sales growth rate of -9.78% raises concerns about the company’s ability to maintain revenue levels amid competitive pressures.
- Profit Decline: A profit growth decline of -2.34% indicates potential challenges in operational efficiency and profitability.
- High Debt Levels: With total debt amounting to approximately ₹29,390 crore, there may be concerns regarding the company’s financial leverage and ability to manage its obligations effectively.
Indiahood Recommendation on NHPC Share: Buy or Sell?
Given the current market conditions and financial outlook, it is advisable to hold NHPC shares for now. While the company shows potential for recovery due to strong promoter confidence and stable dividend yields, declining sales growth and existing debt levels warrant caution among investors.
Others Recommendation on NHPC Share: Buy or Sell?
Market analysts have varied opinions on NHPC’s future:
- Motilal Oswal recommends a cautious approach, suggesting investors consider holding their positions until more clarity emerges from upcoming earnings reports.
- ICICI Direct indicates that if the stock stabilizes around ₹82, it could be a potential buy with a target price of around ₹90 based on expected recovery.
- HDFC Securities advises maintaining a hold position until the company’s operational performance continues to improve and profitability stabilizes.
Conclusion
In conclusion, while NHPC’s share price has shown recent declines and presents some challenges regarding sales growth and profit margins, its strong position in the hydropower sector suggests potential for recovery in the long term. Investors should remain vigilant and consider holding their positions until more definitive trends emerge from upcoming earnings reports.
Disclaimer
This article is 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 related to NHPC shares or any other financial instruments.
