NHPC shares gained 1.35 per cent to ₹80.88 on the NSE today as brokerage firm CLSA upgraded the hydropower company to ‘High Conviction Outperform’ while slightly reducing its target price to ₹117 from ₹120.
According to CLSA’s latest report, the brokerage believes NHPC stock could double in value over the next four years despite experiencing a 25 per cent correction over the past six months. This correction presents what CLSA describes as “an inexpensive opportunity to accumulate” shares.
Meanwhile, NHPC has issued a clarification regarding a February 19 news article claiming the company would “shortly decide upon buying co-promoters stake in PTC.” In its statement to stock exchanges, NHPC said the proposal “is in very initial stage of study” and that any material developments would be communicated “in due course.”
The positive CLSA outlook stems primarily from the commencement of the Parbati 2 hydroelectric project, which has reportedly boosted regulated equity by 27 per cent in Q1FY25. CLSA projects regulated equity could double over FY24-28 as several large projects reach completion, driving earnings growth.