NHPC Share Price Rises On Budget Hopes, Interim Dividend Plans
Earlier this fiscal year, NHPC declared a final dividend of Rs 0.5 per share, with an ex-date of Aug. 12.
Shares of NHPC Ltd. rose as much as 2.42% on Saturday ahead of Union Budget 2025.
The company's board of directors will meet on Feb. 7 to approve its December-quarter results and consider an interim dividend for the financial year.
Earlier this fiscal, NHPC had declared a final dividend of Rs 0.5 per share, with an ex-date of Aug. 12, 2024.
The company also announced management changes. Executive directors Vivek Ranjan Shrivastava, Uday Shanker Sahi and Lucas Guria have stepped down upon attaining the age of superannuation. Mahender Kumar Kashyap and Narendra Kumar have been promoted to replace them, effective Saturday.
On Jan. 27, NHPC raised Rs 2,489 crore through unsecured, redeemable, non-convertible, non-cumulative, and taxable 7.20% AE Series Bonds 2035 via private placement.
Additionally, budget expectations could be driving up the stock since there has been a strong emphasis on the power sector in the previous budget. Significant allocations and policy measures are anticipated to drive India's energy transition.
The country's energy demand is projected to double in five years and quadruple over the next 25 years. However, the sector faces challenges in securing adequate private investment, which remains crucial for sustaining long-term growth. While government capital expenditure plays a key role, bridging policy gaps to attract private funding will be essential to meeting the sector's financial needs.
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NHPC stock rose as much as 2.55% during the day to Rs 82.6 apiece on the NSE. It was trading 1.89% higher at Rs 82.07 apiece, compared to a 0.21% advance in the benchmark Nifty 50 as of 10:13 a.m.
It has fallen 9.98% in the last 12 months. The total traded volume so far in the day stood at 2.1 times its 30-day average. The relative strength index was at 58.52.
Five out of the 10 analysts tracking NHPC have a 'buy' rating on the stock, one recommends a 'hold' and four suggest a 'sell', according to Bloomberg data. The average of 12-month analysts' price targets is Rs 96, implying a potential downside of 8.3%.
