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INVESTMENT INSIGHTS

Check Before You Invest : NHPC Ltd

BSE: 533098 NSE: NHPC ISIN: INE848E01016
  |   Sector:  Power   |   Industry:  Power Generation/Distribution

Snapshot

Q.1 Which industry/sub-sector does NHPC Ltd belong to?
NHPC Ltd belongs to the Power sector, operating specifically within the Power Generation/Distribution segment.
Q.2 Is NHPC Ltd a good quality company?
NHPC Ltd is a quality company, based on a 10 year financial track record.
Q.3 Is NHPC Ltd undervalued or overvalued?
NHPC Ltd appears Somewhat overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is NHPC Ltd a good buy now?
NHPC Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of NHPC Ltd?
NHPC Ltd revenue growth is 7.8% for FY-2025 , which is above its 5 year CAGR of 0.7% , indicating faster growth.
Q.2 Gross Profit margin of NHPC Ltd?
NHPC Ltd Gross profit margin which is the profit after deduction of direct costs, is 54.7% for FY-2025 , which is below its 5 year median of 60.8% , indicating decreasing margins.
Q.3 Operating Profit Margin of NHPC Ltd?
NHPC Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 51.5% for FY-2025 , which is below its 5 year median of 52.86% indicating decreasing margins.
Q.4 Net Profit Margin of NHPC Ltd?
NHPC Ltd Net Profit Margin is 32.87% for FY-2025 , is below with its 5 year median of 40.17%, indicating decreasing margins.
Current Level Historic Median
Gross Profit Margin 54.7 60.8
Operating Profit Margin 51.5 52.86
Net Profit Margin 32.87 40.17
Q.5 Return on Asset of NHPC Ltd?
NHPC Ltd Return on Asset is 3.4(x), which is below its 5 year historical median of 4.75(x), indicating deteriorated asset utilization efficiency.
Q.6 Return on Equity (ROE) of NHPC Ltd?
NHPC Ltd Return on equity is 8.71% for FY-2025 , which is below its historical median of 11.11%, indicating the business is making worse use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of NHPC Ltd?
NHPC Ltd Return on capital employed is 7.93% for FY-2025 , which is below its estimated weighted average cost of capital(WACC) 11.25%, indicating value preservation.
Q.8 Cash conversion cycle of NHPC Ltd?
NHPC Ltd Cash conversion cycle is 148 , below its historical median of 181 , indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.1 0.12
ROE 8.71 11.11
ROCE 7.93 8.37
Cash Conversion Cycle 148 181
Q.9 Debt to Equity ratio of NHPC Ltd?
NHPC Ltd Debt-to-Equity ratio is 0.99 , which is lower with the industry average of 1.05 , indicating lower debt levels in the industry.
Q.10 Debt to cash flow from operations of NHPC Ltd?
NHPC Ltd Debt to cash flow from operations is 7.85 , which is at a unhealthy level, indicating the business is not able to service its debt comfortably.

Ownership & governance

Q.1 Promoter shareholding and pledge status of NHPC Ltd?
Promoters hold 67.40% of the NHPC Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of NHPC Ltd vs industry peers?
NHPC Ltd revenue CAGR is 0.73% , compared to the industry median CAGR of 5.38% , indicating stable growth and maintaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 10,379.9 14,561
Gross Profit 5,677.9 4,581.3
Operating Profit 5,325 4,386.5
Net Profit 3,412 2,749.5
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.1 0.48
ROE 8.71 12.42
ROCE 7.93 12.26
Cash Conversion Cycle 148.37 98

Valuation & price assessment

Q.1 Stock return of NHPC Ltd over the last decade?
Over the last 9 years, the stock has delivered a CAGR of 12.5% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 12.5% 26.7% 21.9% -7.8%
Q.3 Valuation ratios of NHPC Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 24.51 6.46 32.46
Price to Book 1.92 0.93 1.75
Price to Sales 6.95 2.22 6.05
EV to EBITDA 19.16 7.09 12.85

Check more companies

1. JSW Energy
2. NTPC Green Energy
3. NHPC
4. Torrent Power
5. Neyveli Lignite
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