- Brokerage firm Anand Rathi has recommended NHPC Ltd as a special stock pick, predicting a 22% upside for the hydroelectric generation company’s shares.
- NHPC’s share price has surged over 114% in the past year and more than 52% year-to-date (YTD), following a major consolidation period of over three months.
- “We advise traders to accumulate NHPC shares in the range of ₹99 – 95 with a stop loss of ₹85 on a closing basis for an upside target of ₹121,” suggests Anand Rathi Research Team.
Anand Rathi brokerage firm recommends NHPC Ltd as a special stock pick, predicting a 22% upside for the shares of the state-owned hydroelectric generation company.
Anand Rathi Bullish on NHPC
Brokerage firm Anand Rathi remains bullish on NHPC Ltd, a state-owned hydroelectric generation company. The firm has recommended NHPC as its special stock pick, expecting around a 22% upside for the stock. NHPC’s share price has seen a significant increase of more than 114% in the past year and over 52% year-to-date (YTD). After a sharp rally, the shares underwent a major consolidation for over three months.
Bullish Inverse Head & Shoulder Pattern
Recently, a breakout from the consolidation was witnessed, and the price action resembles a bullish inverse Head & Shoulder pattern. The Anand Rathi Research Team advises traders to accumulate NHPC shares in the range of ₹99 – 95 with a stop loss of ₹85 on a closing basis for an upside target of ₹121. This target price implies an upside potential of nearly 22% from Friday’s closing price.
NHPC’s Operational and Financial Performance
NHPC is a Mini Ratna category I public sector utility with core operations revolving around the production and distribution of substantial power volumes to diverse Power Utilities. The company also engages in offering project management, construction contracts, consultancy services, and power trading activities. Despite large capex and dividend payout, NHPC’s overall financial risk profile continues to remain comfortable. The company is the largest hydropower producer with a strong financial risk profile and is focused on maintaining an average return on equity of 16.5% going forward.
Conclusion
Given NHPC’s strong financial risk profile and its focus on maintaining an average return on equity of 16.5%, the company presents a promising investment opportunity. The Anand Rathi Research Team’s recommendation to accumulate NHPC shares and their prediction of a 22% upside further strengthens the case for investing in NHPC.
