PSU stock
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CLSA, a prominent global brokerage firm, has recently upgraded NHPC Limited, India’s leading hydropower utility, to a ‘high conviction outperform’ rating. The firm has set a target price of ₹117 for NHPC’s stock, suggesting a potential upside of approximately 57% from its current trading price of ₹77.75. citeturn0search3
CLSA, a prominent global brokerage firm, has recently upgraded NHPC Limited, India’s leading hydropower utility, to a ‘high conviction outperform’ rating. The firm has set a target price of ₹117 for NHPC’s stock, suggesting a potential upside of approximately 57% from its current trading price of ₹77.75.
PSU stock Key Factors Influencing CLSA’s Positive Outlook on NHPC:
- Strategic Expansion into Pumped Storage Projects:
- NHPC plans to invest around ₹84,000 crore to develop 22 gigawatts (GW) of pumped storage capacity. This initiative aims to enhance grid stability and support renewable energy integration, positioning NHPC as a leader in India’s energy transition. zeebiz.com
- Increase in Regulated Equity:
- The commencement of the Parbati 2 Hydro Project has led to a 27% increase in NHPC’s regulated equity during the first quarter of the financial year. This growth is expected to continue as major projects reach completion, driving earnings per share (EPS) growth. livemint.com
- Upcoming Listing of Renewable Energy Subsidiary:
- NHPC plans to list its renewable energy subsidiary within the next two years. This move is anticipated to unlock value and attract investor interest in the growing renewable energy sector. zeebiz.com
- Attractive Valuation Post-Correction:
- The stock has experienced a 25% decline over the past six months, presenting an attractive entry point for investors. CLSA views this correction as an opportunity to invest in a company with strong growth prospects. zeebiz.com
PSU stock Conclusion:
CLSA’s upgrade of NHPC reflects confidence in the company’s strategic initiatives and growth potential. The planned investments in pumped storage, expansion of regulated equity, and the upcoming listing of its renewable energy arm are expected to drive significant value creation. Investors may consider NHPC as a compelling opportunity, with the potential for substantial returns over the next four years.Key Factors PSU stock Influencing CLSA’s Positive Outlook on NHPC:
- Strategic Expansion into Pumped Storage Projects:
- NHPC plans to invest around ₹84,000 crore to develop 22 gigawatts (GW) of pumped storage capacity. This initiative aims to enhance grid stability and support renewable energy integration, positioning NHPC as a leader in India’s energy transition. citeturn0search2
- Increase in Regulated Equity:
- The commencement of the Parbati 2 Hydro Project has led to a 27% increase in NHPC’s regulated equity during the first quarter of the financial year. This growth is expected to continue as major projects reach completion, driving earnings per share (EPS) growth. citeturn0search3
- Upcoming Listing of Renewable Energy Subsidiary:
- NHPC plans to list its renewable energy subsidiary within the next two years. This move is anticipated to unlock value and attract investor interest in the growing renewable energy sector. citeturn0search2
- Attractive Valuation Post-Correction:
- The stock has experienced a 25% decline over the past six months, presenting an attractive entry point for investors. CLSA views this correction as an opportunity to invest in a company with strong growth prospects. citeturn0search2
PSU stock Conclusion:
CLSA’s upgrade of NHPC reflects confidence in the company’s strategic initiatives and growth potential. The planned investments in pumped storage, CLSA, a prominent global brokerage firm, has recently upgraded NHPC Limited, India’s leading hydropower utility, to a ‘high conviction outperform’ rating. The firm has set a target price of ₹117 for NHPC’s stock, suggesting a potential upside of approximately 57% from its current trading price of ₹77.75.
PSU stock Key Factors Influencing CLSA’s Positive Outlook on NHPC:
- Strategic Expansion into Pumped Storage Projects:
- NHPC plans to invest around ₹84,000 crore to develop 22 gigawatts (GW) of pumped storage capacity. This initiative aims to enhance grid stability and support renewable energy integration, positioning NHPC as a leader in India’s energy transition. zeebiz.com
- Increase in Regulated Equity:
- The commencement of the Parbati 2 Hydro Project has led to a 27% increase in NHPC’s regulated equity during the first quarter of the financial year. This growth is expected to continue as major projects reach completion, driving earnings per share (EPS) growth. livemint.com
- Upcoming Listing of Renewable Energy Subsidiary:
- NHPC plans to list its renewable energy subsidiary within the next two years. This move is anticipated to unlock value and attract investor interest in the growing renewable energy sector. zeebiz.com
- Attractive Valuation Post-Correction:
- The stock has experienced a 25% decline over the past six months, presenting an attractive entry point for investors. CLSA views this correction as an opportunity to invest in a company with strong growth prospects. zeebiz.com
Conclusion:
CLSA’s upgrade of NHPC reflects confidence in the company’s strategic initiatives and growth potential. The planned investments in pumped storage, expansion of regulated equity, and the upcoming listing of its renewable energy arm are expected to drive significant value creation. Investors may consider NHPC as a compelling opportunity, with the potential for substantial returns over the next four years.expansion of regulated equity, and the upcoming listing of its renewable energy arm are expected to drive significant value creation. Investors may consider NHPC as a compelling opportunity, with the potential for substantial returns over the next four years.
For a more detailed analysis, you can watch the following video:
videoThis Navratna PSU can see its stock double in the next four years, says CLSAturn0search0
