NHPC Limited, previously known as National Hydroelectric Power Corporation, is a hydropower electric generation company owned by the Government of India. The company also generates power through conventional and non-conventional sources.
The market cap of NHPC Limited, as of July 5, 2018, is a little over Rs.23,500 crore.
Company’s Wealth and Recent Performance
- For the March quarter of the financial year 2017-18, NHPC Limited reported its revenue from operations to be at Rs.1,136.90 crore. Over the March quarter of the previous fiscal year, the company’s income is down by 16.55 percent.
- Similarly, for the year ended on March 31, 2018, the company’s income from operations was disclosed to be at Rs.6,934.03 crore. In comparison to the revenue reported for the FY 2016-17, there’s been a marginal decrease of 4%.
- Considering the profit after tax for the fourth quarter, it was revealed to be at Rs.189.42 crore. This metric increased by 12.47% over the Q4 FY 2017-18 on account of reduction in total expenditure. Similarly, the PAT for the entire year stood at Rs.2,758.65 crore in comparison to Rs.2,795.59 reported for the corresponding period last year.
- The company’s total equity and liabilities at the end of the fiscal year 2017-18 stood at Rs.53,475 crore. Of this, the company’s long-term loans are worth Rs.16,728 crore - a reduction of a little over 5% over the loans reported in the last fiscal year.
NHPC Limited Stock Trends in 2018
- On January 2, 2018, the share price of NHPC Limited was Rs.32.30 on the National Stock Exchange. The first week of the month saw the scrip hit its 52 week-high at Rs.34.50. This rise was almost immediately followed by a sharp drop in the prices and as a result, the stock descended into the Rs.20 territory.
- The prices continued to slide in the month of February as well, driven by rocky market conditions across the world. An interim dividend of 11.2% was announced in the month but that didn’t do much to keep investors’ sentiments high. On February 28, the NHPC Limited shares finished trading at Rs.27.30.
- The month of March didn’t bring any relief to the investors. NHPC Limited stocks were traded at levels above Rs.25 for most of the month. The scrip didn’t make any strong gains over the month and the closing price on March 28 was Rs.27.70. April began on a positive note for the investors as prices rose slightly to touch their previous levels around Rs.30. However, over the course of the month, the prices dipped to retreat back to their previous levels.
- The stocks continued to exhibit their bearish behaviour in May and June as well. The NHPC Limited share price continued to slip with the scrip eventually going below the Rs.25 mark. In June, the prices dipped further to reach their 52 week-low at Rs.22.35. On June 29, the scrip finished trading at Rs.23.45.
NHPC Limited Stock Trends in 2016 and 2017
- At the start of January 2016, the share price of NHPC Limited was at levels slightly above Rs.20 on the NSE and BSE. In the first quarter of the year, the scrip went through its usual ups and downs without making any significant gains. An interim dividend of 9% was also announced in February. The prices rose steadily in March and the stocks moved on to gain 10% to end the month at Rs.24.15.
- The NHPC Limited shares took a sharp nosedive in late April. As a result, the scrip was back to its previous levels at Rs.20 and for most of May, the shares changed hands at these levels. The prices rose once again towards the end of the month and this time, its rise wasn’t abrupted. The scrip commenced the month of June at Rs.24.05.
- Through June and July, the NHPC Limited share price remained at levels varying from Rs.24 - Rs.25.50. In August, the price rose once again and crossed the Rs.27 mark. In September, a final dividend of 6% was announced. However, this announcement was soon followed by a dip which took the price back to its previous levels at Rs.25.
- The final quarter of the year saw the NHPC Limited shares stage a bull run. The prices dipped on a couple of occasions but ended the year on an impressive high at Rs.26.45. Since the start of the year, the scrip had improved by more than 30%.
- The NHPC Limited shares commenced 2017 with a bull run. On January 2, 2017, the opening price of the stock was Rs.26.65. By the end of the month, the stock had managed to cross the Rs.29 mark and was inching closer to the psychological barrier of Rs.30. An interim dividend of 17% was also announced in the month.
- The share price went beyond the Rs.30 mark in early February. It took the shares a few weeks to find their bearings at this level. Nonetheless, investors continued to enjoy steady gains as the NHPC Limited shares were traded at levels varying from Rs.30 - Rs.31 for the next couple of months. Towards the end of March 2017, the prices spiked sharply to touch Rs.33. This dramatic rise was almost immediately followed by a dip which took place over the course of April and May. This dip led the stocks to finish the month of May at Rs.30.25.
- In early June, the share price of NHPC Limited rose once again to recuperate its previous losses. The stock price rose handsomely in the month to touch Rs.34, although it failed to stay at those levels for long. Just like on previous occasions, this rise was soon followed by a fall which was seen through the months of July and August.
- In the final week of August, the prices dipped more and the shares went down to be traded at levels below Rs.30. By this point, the NHPC Limited shares had effectively shed all their gains made over the course of last few months. In September, a final dividend of 17% was announced but that didn’t stop the investors from selling their shares.
- In the last couple of months, the scrip tried to stage a recovery but that didn’t work out for the investors. The shares were still traded at levels below Rs.30 for most of the remaining weeks of the year. It wasn’t until the final week of December that the prices rose. This rise in prices helped the scrip make up for its previous losses and investors managed to end the year on a high note. The closing price on December 29 was Rs.32.65.
Should you invest in NHPC Limited?
- NHPC Limited is a premier organisation in India for the development of hydroelectric power. The company strategically forms partnerships with state governments to design, construct, and operate hydroelectric power plants. One of the examples of such ventures lies in its MoU with Madhya Pradesh, which speaks about utilising the Narmada waterway bowl to generate power. The company is also expanding its area of operations and is venturing into other renewable energy sources.
- As a government entity, the company has done quite well to report healthy numbers. With the sole exception of FY 2017-18, where its revenues and subsequently, profits have declined marginally, the company has done considerably well over the years and has reported a gradual increase in these metrics. In addition to this, NHPC Limited is also fairly regular with dividends. The last fiscal year alone saw two dividend payouts and it has been the case in the past as well.
- At present value, NHPC Limited certainly makes for an attractive pick, especially for a diversified portfolio with dividends in mind. NHPC also has an important role to play in the improvement of infrastructure in India. All these factors make NHPC Limited suitable for purchase, although it is strongly recommended that you do your own research before investing.
NHPC Limited is a power generation company owned by the Government of India. The company is primarily involved in the development and generation of hydroelectric power in all aspects, although it also generates power through other renewable means such as solar, tidal, and wind. NHPC Limited has been dubbed as a premier company for the development of hydropower in India. The power capacity of all the operational projects developed by the company stands at 7071 MW as of March 2018.
History of the Company
NHPC Limited was incorporated in the year 1975. Shortly after the company was formed, the company received its first hydroelectric project from the Government of India. Subsequently, more projects were commissioned including the well-known ones like Baira Siul hydroelectric project, Devighat Power Station in Nepal, et cetera. In the early 1990s, a consultancy division was established to provide services related to investigation, design, construction, and operation of hydropower projects. The company went public in September 2009 and its shares were listed on the National Stock Exchange and Bombay Stock Exchange.
Management of the Company
Mr. Balraj Joshi - Chairman & Managing Director
Mr. Joshi has been a part of NHPC Limited since October 1982. Back then, he joined the organisation as a Probationary Executive for the Salal Project in Jammu & Kashmir. He has been a part of the organisation for more than 30 years and in his illustrious career, he has worked on many projects like Salal, Kurichu (Bhutan), Teesta-V, Chutak, et cetera. Having served in these projects, he was eventually promoted to the post of Executive Director of Design & Engineering. He has also represented NHPC Limited on various consultancy assignments. Mr. Joshi finished his Bachelor’s in Civil Engineering from Government College Engineering, Karad, and followed it with a Postgraduate qualification in Hydropower Development and Planning from the Norwegian Technical Institute, Trondheim.
Mr. Ratish Kumar - Director of Projects
Mr. Kumar obtained his B.Tech degree in Electrical Engineering from the GB Pant University of Agriculture and Technology, Pantnagar. He started his career with NHPC Limited back in 1982 as a Trainee Engineer for the Baira Siul Hydro Project. As the Director of Projects, Mr. Kumar is responsible for overseeing all the NHPC projects which are in the construction and pre-construction stages. In addition to this, he also manages the consultancy assignments and joint-ventures undertaken by the company. Mr. Kumar rose through the ranks over the years after working on various projects like Salal Power Station Project Stage II, restoration of Dhauliganga and Uri II Power Station, et cetera.
Mr. Nikhil Kumar Jain - Director of Personnel
Mr. Jain presently serves as the Director of Personnel for NHPC Limited. Prior to joining this organisation in 2017, he worked for Air India where he held the same post. He has worked in the public and private sector for almost 30 years and holds a great deal of experience. He started his career with Indian Railways as a Railway Personnel Services Officer in 1988. Over the years, he rose through the ranks and eventually became the Executive Director (Joint Secretary) in the Ministry of Railways.
NHPC Limited Stock Listings in NSE, BSE, and Indices
NHPC Limited shares are available to the general public for trading on the National Stock Exchange and the Bombay Stock Exchange. The respective codes for the same are as follows:
- NSE: NHPC
- BSE: 533098
- ISIN: INE848E01016
- Sector: Power - Generation & Distribution
Coming to the stock market indices, the company does not comprise the BSE SENSEX and NIFTY 50 - India’s benchmark stock market indices. However, NHPC Limited does form other crucial indices such as:
- NIFTY 100
- NIFTY 200
- NIFTY 500
- NIFTY Next50
- S&P BSE 200
- S&P BSE PSU
- S&P BSE Utilities
- S&P BSE Power
- S&P BSE Dollex - 200
NHPC Office Complex
Faridabad - 121003
Contact number: 0129-2588500, 0129-2588110
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