NHPC Ltd.
Power · NSE
52-week range
₹72 – ₹90
From 52w high
-10.4%
RSI (14)
49.4
vs SMA 50 / 200
↑ 50 · ↑ 200
NHPC trades at ₹80.77 with a trailing PE of 51.8x against a 5-year earnings CAGR of -4.3%, though forward PE compresses to 15.5x — implying analysts expect a significant earnings recovery. Debt-to-equity stands at 100.41 with a rising debt trend, and the stock ranks last (6th of 6) on quality score among its tracked Power sector peers. Price is essentially flat over 12 months (-0.82%) and sits marginally above both its 50-DMA (₹78.14) and 200-DMA (₹79.46).
- ✓Profit margin of 28.3% indicates NHPC retains a material share of revenue as net income, which is notable for a capital-intensive PSU hydropower operator.
- ✓Dividend yield of 2.36% provides an income component that partially offsets the lack of price appreciation over the past year.
- ✓Price is currently above both the 50-DMA (₹78.14) and 200-DMA (₹79.46), and the 3-month price change of +2.79% shows recent relative stabilization after a flat 12-month period.
- ✓Forward PE of 15.5x is meaningfully below the trailing PE of 51.8x, reflecting analyst expectations of a substantial earnings step-up — a gap that could narrow if projected earnings are realized.
- ✗Trailing PE of 51.8x sits well above sector peers NTPC (22.3x) and POWERGRID (20.2x), while revenue and earnings have contracted at -2.9% and -4.3% respectively over 5 years — a premium multiple on declining fundamentals.
- ✗Debt-to-equity of 100.41 is exceptionally high with a rising trend; FCF was positive in only 2 of tracked years, raising questions about the sustainability of capital allocation at this leverage level.
- ✗Quality score of 20 ranks NHPC 6th of 6 among Power sector peers, with zero years of ROE above 15% and a consistency score of 0, indicating weak return-on-capital generation historically.
- ✗Five-year earnings CAGR of -4.3% and revenue CAGR of -2.9% indicate sustained fundamental contraction, making the forward earnings recovery implied by the 15.5x forward PE dependent on a meaningful reversal of recent trends.
- ·NHPC is reportedly finalising a ₹30,000 crore investment plan for a hydropower project in Arunachal Pradesh, representing a significant potential capacity expansion; the financial structure and execution timeline for this outlay remain to be detailed against the current high-debt backdrop.
- ·Independent directors at NHPC completed their tenure on April 16, 2026, and a Director (Personnel) appointment is in process — board-level transitions at a PSU can affect governance continuity during a period of large capex planning.
- ·With 7 analysts covering the stock but no mean consensus rating available in this run, and news flow predominantly neutral (6 of 8 items neutral), the external information environment provides limited directional signal beyond the capital expenditure announcement.
- ?Does the ₹30,000 crore Arunachal project financing plan assume additional debt, and if so, how does that interact with an already-elevated D/E ratio of 100.41?
- ?What is the specific source of the projected earnings recovery implied by the 15.5x forward PE, given that the 5-year trend shows -4.3% earnings CAGR?
- ?How does NHPC's water resource allocation, plant load factor, and tariff revision cycle compare to peers such as NTPC and POWERGRID in the context of the sector's regulatory environment?
- ?What governance or operational changes, if any, accompanied the independent director tenure completions in April 2026, and how might board composition shifts affect capital allocation decisions?
PE
51.8
Forward PE
15.5
ROE
—
Profit margin
+28.3%
D/E
100.41
Dividend yield
+2.4%
Quality score
20/100
ROE 5y above 15%
0/5 yrs
FCF 5y positive
2/5 yrs
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.Analysis generated 11 May 2026.