Overall Fundamental outlook

Business Operations:

Sector: Utilities
Industry: Utilities - Renewable

NHPC Limited, together with its subsidiaries, engages in the generation, sale, and trading of electricity through hydro, wind, and solar power stations in India. It also owns and operates power stations. In addition, the company offers construction, projection execution and maintenance, and consultancy services in the areas of design and engineering, investigation, geotechnical, construction and project management, procurement, supervision, operation and maintenance of power plants, and rural road and electrification projects. It sells electricity to bulk customers that include electricity utilities owned by state governments/private distribution companies. The company was incorporated in 1975 and is based in Faridabad, India.

Revenue projections:

Revenue projections for NHPC
Revenue projections for NHPC

Investors are expected to be cautious with NHPC, as its revenues are projected to fall compared to last year. A decline in revenue often results in a negative impact on profitability, prompting concerns about the company's financial stability and making investors more conservative in their approach.

Financial Ratios:

currentRatio 0.989000
forwardPE 13.679153
debtToEquity 92.541000
earningsGrowth 0.545000
revenueGrowth 0.243000
grossMargins 0.923010
operatingMargins 0.342620
trailingEps 2.710000
forwardEps 3.860000

NHPC Limited's Forward PE is positioned well, reflecting a favorable balance between stock price and earnings. The stock isn't overpriced, offering room for growth and making it a potentially rewarding investment as its value has room to rise further.
NHPC's elevated debt-to-equity ratio reflects substantial leverage, meaning the company relies heavily on borrowed funds. This could increase financial risk, particularly in times of economic uncertainty or if the company's profitability declines.
With both earnings and revenue growth showing positive trends, NHPC Limited is expected to expand its business. This signals a healthy financial trajectory, suggesting that the company is positioned for continued growth and increasing profitability.
NHPC's positive gross and operating margins reflect its profitability and efficiency. These metrics demonstrate the company's ability to manage costs effectively while generating strong revenue, highlighting its solid financial health and operational effectiveness.
NHPC's forward EPS being higher than its trailing EPS indicates that the company is expected to achieve greater profitability this financial year. This suggests improving earnings and a stronger financial position compared to the previous year's performance.

Price projections:

Price projections for NHPC
Price projections for NHPC

NHPC Limited's price projections have been revised downward over time, reflecting a shift in sentiment among analysts. The steady decline in projections points to a more cautious outlook on the company's future performance.

Recommendation changes over time:

Recommendations trend for NHPC
Recommendations trend for NHPC


With a recent sell bias for NHPC from analysts, investors should be cautious and consider a variety of market indicators before making decisions. This broader perspective will provide more informed insights into the stock's overall outlook, rather than relying on one analysis alone.