Stock to buy: Anand Rathi recommends NHPC as its special pick; sees 22% upside potential

NHPC stock terms has jumped much than 114% successful the past 1 year, portion the banal is up much than 52% year-to-date (YTD). After a crisp rally, NHPC shares underwent a large consolidation for implicit 3 months. 

“Recently we witnessed a breakout from this consolidation and the terms enactment resembles a bullish inverse Head & Shoulder pattern. Thus, we counsel traders to accumulate NHPC shares successful the scope of ₹99 – 95 with a halt nonaccomplishment of ₹85 connected a closing ground for an upside people of ₹121," Anand Rathi Research Team said successful a note.

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NHPC stock terms people of ₹121 apiece, implies an upside imaginable of astir 22% from Friday’s closing price.

NHPC is simply a Mini Ratna class I nationalist assemblage inferior and its halfway operations revolve astir the accumulation and organisation of important powerfulness volumes to divers Power Utilities. The institution besides engages successful offering task management, operation contracts, consultancy services, and powerfulness trading activities.

“The wide fiscal hazard illustration of NHPC continued to stay comfy contempt ample capex and dividend payout. The institution is the largest hydropower shaper with a beardown fiscal hazard illustration and focused connected maintaining an mean instrumentality connected equity of 16.5% going forward," the brokerage steadfast noted.

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NHPC reported a consolidated nett net of ₹628.44 crore for the 3rd 4th ended December 2023, registering a diminution of 19% from ₹775.99 crore successful the year-ago period. The company’s full income declined to ₹2,549.69 crore successful Q3FY24 from ₹2,691.34 crore, YoY.

In the FY2023, NHPC’s powerfulness plants collectively achieved an awesome Aggregate Plant Availability Factor (PAF) of 88.7%, an betterment from the erstwhile year’s fig of 87.8%.

At 10:40 am, NHPC shares were trading 0.78% higher astatine ₹100.00 apiece connected the BSE.

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Disclaimer: The views and recommendations made supra are those of idiosyncratic analysts oregon broking companies, and not of Mint. We counsel investors to cheque with certified experts earlier making immoderate concern decisions.

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Published: 06 May 2024, 10:41 AM IST