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

NHPC is projected to see lower revenues than in the previous year, a trend that usually concerns investors. Declining revenues often harm a company's profitability, leading investors to exercise caution as they weigh the potential risks of continued financial downturns.

Financial Ratios:

currentRatio 0.989000
forwardPE 13.646394
debtToEquity 92.541000
earningsGrowth 0.545000
revenueGrowth 0.243000
grossMargins 0.923010
operatingMargins 0.342620
trailingEps 2.720000
forwardEps 3.860000

NHPC's Forward PE ratio is in a good range, reflecting a reasonable balance between stock price and earnings. The stock is not overpriced, leaving room for growth, which suggests potential for investors looking to capitalize on future value appreciation.
NHPC's high debt-to-equity ratio shows the company is significantly leveraged, relying heavily on debt financing. This raises the potential for increased financial risk, especially if the company's earnings or cash flow are negatively impacted.
Positive earnings and revenue growth for NHPC point to expected business expansion. The company is projected to continue growing its operations, as increasing profits and sales highlight a strong trajectory for further growth in the future.
NHPC's positive gross and operating margins indicate strong financial performance. These margins show that the company is profitable and efficient in its operations, with effective cost control contributing to its overall financial success.
NHPC's forward EPS being higher than its trailing EPS points to expected growth in profitability. This suggests that the company is projected to perform better in the current financial year, with higher earnings forecasted compared to the previous year.

Price projections:

Price projections for NHPC
Price projections for NHPC

Throughout its recent performance, NHPC Limited's price has been consistently close to the lower range of projected values. This suggests that the company may face challenges in achieving higher valuations in the eyes of investors.

Recommendation changes over time:

Recommendations trend for NHPC
Recommendations trend for NHPC


Analysts have developed a sell bias for NHPC Limited, urging caution for investors. It's essential to base investment decisions on multiple market indicators to avoid hasty conclusions. Relying on a broader scope of information will provide a more accurate assessment of NHPC Limited's overall potential.