NHPC Share Price Rises As CLSA Upgrades Stock To 'High Conviction Outperform'

NHPC Ltd.'s share price rose over 2% as the stock received an upgrade from CLSA. The brokerage has placed the company's stock in the "high conviction outperform" category from the earlier "outperform" category. But, despite this, CLSA has reduced the target price of the company to Rs 117 from earlier Rs 120 to factor in higher capex.

The brokerage has upgraded the stock on the heels of a 25% correction in the past five months making it one of the top clean, green power utility stocks available for more investors. Apart from this, "The renaissance in hydropower with India announcing net zero validated by a rise in ROEs and a slew of new project awards to NHPC are rerating catalysts," the brokerage noted.

CLSA believes NHPC has 15% of India's hydro capacity and it has a 67% share in under-construction projects, driving strong earnings per share growth versus slow growth in the sector. Its natural entry into pumped storage projects, with a likely 3 GW in viable projects, should see them implemented by FY32.

NHPC's largest project, Parbati 2, shall start full generation in 4QFY25, said CLSA.

The scrip rose as much as 2.18% to Rs 76.25 apiece. It pared gains to trade 1.35% higher at Rs 75.63 apiece, as of 09:17 a.m. This compares to a 0.25% decline in the NSE Nifty 50 Index.

It has fallen 21.29% in the last 12 months. Total traded volume so far in the day stood at 0.14 times its 30-day average. The relative strength index was at 54.86.