NHPC is a Mini Ratna Category public sector company and is a key player in India’s hydroelectric power generation sector. Let’s predict NHPC share price target 2025 based on technical analysis.
This flagship entity of the Government of India is primarily engaged in the generation and sale of bulk power to various power utilities.
In addition to hydroelectric power generation, NHPC’s business operations include providing project management, construction contracts, consultancy services, and power trading.
Monthly Analysis of NHPC Share Price Target for 2025
Based on NHPC’s growth prospects, capital expenditure, and strategic initiatives, the following is a projected monthly NHPC Share Price Target for 2025:
Month | Projected Share Price (₹) |
---|---|
Jan 2025 | 120 |
Feb 2025 | 125 |
Mar 2025 | 130 |
Apr 2025 | 135 |
May 2025 | 140 |
Jun 2025 | 145 |
Jul 2025 | 150 |
Aug 2025 | 155 |
Sep 2025 | 160 |
Oct 2025 | 165 |
Nov 2025 | 170 |
Dec 2025 | 175 |
Company Overview
Power Capacity
NHPC boasts an installed capacity of 7097 MW, with 6971 MW from hydroelectric power and 126 MW from renewable energy sources.
The company operates 25 power stations across 13 states, contributing to 15% of India’s installed hydropower capacity on a consolidated basis.
Upcoming Projects
NHPC is actively involved in the construction of 15 solar and hydropower projects with a combined capacity of 10,449 MW, including joint ventures and subsidiaries.
As of December 2023, projects under clearance amounted to 4112 MW, and projects under survey stood at 4110 MW.
Capacity Addition and Capex
The company plans to invest ₹10,857 crore in capital expenditure during FY24 on a consolidated basis. In FY25, NHPC aims to add 800 MW of capacity, followed by an additional 2000 MW in FY26.
Solar Power Project Status
NHPC commissioned a 380 MW solar power project at Neemba, Fatehgarh, Rajasthan, on February 7, 2024.
The company had already commissioned 320 MW during FY23, making the cumulative commissioned capacity 700 MW out of the total 2000 MW awarded earlier.
Strategic Initiatives
Memorandums of Understanding (MoUs)
- GPCL (Gujarat Power Corporation Limited): On January 3, 2024, NHPC signed an MoU for a proposed investment of ₹4000 crore in the Kuppa Pumped Storage Project (750 MW) in Chhota Udaipur, Gujarat.
- Government of Odisha: On June 23, 2023, NHPC signed an MoU with the Government of Odisha through GRIDCO Limited for the development of pumped storage projects and renewable energy in Odisha.
- APGENCO: On August 23, 2023, NHPC signed an MoU with APGENCO for implementing pumped hydro storage and renewable energy projects in Andhra Pradesh, including the Kamlapadu (950 MW) and Yaganti (1000 MW) pumped storage projects in the first phase.
Asset Monetisation
In December 2023, NHPC’s board approved the proposal to monetize future cash flows from the Kishanganga Power Station or other power stations of the company for 8-10 years in a single tranche during FY24 or beyond.
Receivables
As of December 2023, NHPC’s trade receivables stood at ₹4642 crore, compared to ₹5887 crore in FY23. The top five debtors accounted for 83% of total receivables: J&K (29%), Uttar Pradesh (28%), Rajasthan (11%), Punjab (9%), and Chhattisgarh (6%).
Offer for Sale
The Government of India proposed to sell 2.5% of NHPC’s paid-up equity share capital on January 18, 2024, with an oversubscription option of an additional 1% of capital at a floor price of ₹66 per share.
Financial Performance
Quarterly Results
NHPC’s financial performance over recent quarters demonstrates robust growth and strategic management:
Quarter | Mar 2021 | Jun 2021 | Sep 2021 | Dec 2021 | Mar 2022 | Jun 2022 | Sep 2022 | Dec 2022 | Mar 2023 | Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 |
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sales (₹ Cr) | 1609 | 2417 | 2941 | 2157 | 1674 | 2785 | 3366 | 2583 | 2029 | 2757 | 2931 | 2056 | 1888 |
Expenses (₹ Cr) | 1041 | 970 | 1054 | 2237 | 1154 | 1308 | 1178 | 1383 | 1141 | 1253 | 1174 | 1335 | 1003 |
Operating Profit (₹ Cr) | 568 | 1447 | 1887 | -80 | 520 | 1477 | 2188 | 1200 | 888 | 1505 | 1757 | 721 | 885 |
OPM % | 35% | 60% | 64% | -4% | 31% | 53% | 65% | 46% | 44% | 55% | 60% | 35% | 47% |
Other Income (₹ Cr) | 850 | 220 | 265 | 218 | 462 | 255 | 383 | 111 | 425 | 292 | 261 | 587 | 622 |
Interest (₹ Cr) | 137 | 134 | 134 | 130 | 134 | 137 | 107 | 120 | 111 | 109 | 105 | 97 | 91 |
Depreciation (₹ Cr) | 245 | 295 | 296 | 303 | 296 | 303 | 301 | 306 | 304 | 294 | 295 | 296 | 299 |
Profit before tax (₹ Cr) | 1036 | 1238 | 1721 | -295 | 553 | 1291 | 2162 | 885 | 898 | 1394 | 1618 | 914 | 1117 |
Tax % | 53% | 21% | 19% | 402% | 7% | 18% | 22% | 12% | 17% | 21% | -5% | 31% | 45% |
Net Profit (₹ Cr) | 482 | 983 | 1387 | 889 | 516 | 1054 | 1686 | 776 | 745 | 1095 | 1693 | 628 | 611 |
EPS (₹) | 0.44 | 0.90 | 1.33 | 0.81 | 0.47 | 1.03 | 1.53 | 0.67 | 0.65 | 1.03 | 1.54 | 0.49 | 0.55 |
Conclusion
NHPC’s strategic initiatives, robust financial performance, and ongoing focus on renewable energy projects position the company for significant growth in the coming years.
The projected monthly NHPC share price targets for 2025 reflect the company’s potential to deliver sustained value to its shareholders, driven by its comprehensive capacity addition plans, strategic MoUs, and effective asset monetization strategies.