NHPC Ltd (BOM:533098)

QUOTE AND NEWS
The Hindu Business Line  Oct 30  Comment 
Public sector hydro-power generator NHPC Ltd’s net profit for the second quarter of fiscal 2014-15 dropped 3.3 per cent to ₹684.10 crore on the back of higher finance costs. The company’s net p...
The Hindu Business Line  Sep 30  Comment 
A Memorandum of Understanding (MoU) has been signed by Chhattisgarh State Power Holding Company Ltd, Indian Farmers Fertiliser Cooperative Ltd and NHPC Ltd for the development of 2x660 MW sup...
The Economic Times  Sep 2  Comment 
NHPC Ltd is a 'SELL' call with a target of Rs 15 and a stop loss of Rs 16.3.
The Hindu Business Line  Aug 17  Comment 
NHPC Ltd has so far suffered cost over-run of more than Rs 1,000 crore on the Subansiri hydro power project on the Assam-Arunachal Pradesh border, which has been stalled due to protests by local r...
The Economic Times  Aug 1  Comment 
Sell NHPC Ltd at a stop of Rs 17.15.
The Hindu Business Line  Jul 31  Comment 
The recent success of private sector in bagging hydroelectric projects has prompted NHPC Ltd to strike joint ventures with independent power producers. NHPC, which has lost projects to pr...
Reuters  Mar 4  Comment 
Reuters Market Eye - Shares in hydropower utility NHPC Ltd fall as much as 29.9 percent to a five-month low with brokers citing heavy selling by some institutional and high net-worth investors.
The Hindu Business Line  Mar 4  Comment 
After the mid-cap mayhem witnessed last week when the institutional holders went on a selling spree in a host of mid-cap stocks, it was the turn of PSU hydroelectric major NHPC Ltd to be whipped b...
The Hindu Business Line  Mar 4  Comment 
The Hindu Business Line  Mar 4  Comment 
The Economic Times  Dec 28  Comment 
NHPC Ltd is a ‘BUY’ call with a target of Rs 30.60 and a stop loss of Rs 24.
The Economic Times  Sep 20  Comment 
NHPC Ltd is a ‘BUY’ call with a target of Rs 20.50 and a stop loss of Rs 17.50.





 
TOP CONTRIBUTORS

Company Overview

Incorporated in 1975, NHPC Limited, formerly known as National Hydroelectric Power Corporation Ltd, is the largest hydro power company in India. It has developed and constructed 14 power stations and its current total installed capacity is 5,295 MW with a major presence in the Northern and Eastern parts of the country. Its 51 per cent subsidiary, NHDC, has 1,520 MW under operation and is also considering development of a 1,320 MW thermal power project in Madhya Pradesh. The company has 4.6 GW capacity under construction, while 6.7 GW is under different stages of planning and awaiting clearances.

Key Business Highlights

Established track record in implementing hydroelectric projects

NHPC has vast experience in the development and execution of hydroelectric projects. The company has managed the development and implementation of 12 hydroelectric projects, and two thermal power projects through its subsidiary, NHDC. The two hydro power projects ‐ Chamera‐II and Dhauliganga‐I were completed ahead of schedule.

New tariff order for FY10‐14

New tariff norms will provide incentives for early commissioning of projects, while the ROE has also improved to 15.5 per cent from 14 per cent. NHPC is entitled to receive incentives for achieving a plant availability factor greater than the Normative Annual Plant Availability Factor (NAPAF) as well as for generating energy in excess of the design energy level of the plant. Long term PPA (power purchase agreements) with the customers At the time of making investment decisions on new capacity or expansion of existing capacity, NHPC typically has commitments for the purchase of the output. In FY09, NHPC derived 84.81 per cent of its consolidated total income from the sale of energy to State Electricity Boards (SEB) and their successor entities, pursuant to long term power purchase agreements. These billings to state entities are currently secured through letters of credit generally entered into through tripartite agreements among the GoI, the RBI and respective state governments.

Capacity expansion by 80 per cent by 2013

NHPC is set to increase capacity by 80 per cent from 5.1 GW in FY09 to 9.4 GW by FY13. The company has 4.6 GW capacity under construction, while 6.7 GW is under different stages of planning and awaiting clearances from CCEA. Further 7.6 GW is under survey and investigation.

Key Risks

• Hydro‐power projects typically require a long gestation period thus posing a risk of delay in execution.

• Border dispute with China over Arunachal Pradesh can hamper the future prospects of projects planned in that region by NHPC.

Valuations

The stock is currently trading at a P/E multiple of 17.1x on its FY10 EPS of Rs. 1.8 and 11.9x EV/EBITDA multiple based on FY10 EBITDA of Rs. 4,129 crores

Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki