Motilal Oswal has given Neutral recommendation for NHPC with a target price of Rs. 28 in its research report issued on Aug 16, 2021
Motilal Oswal’s research report on NHPC
NHPC’s 1Q result highlights the impact of lower generation, offset by higher other income and revenue from the TLDP-IV order. S/A adj. PAT was flat YoY at INR9.1b. The capex run-rate is expected to increase on account of investments in new projects.
However, much of the commissioning remains 3-4 years away, implying FCF/RoE getting dragged over the near term. Maintain Neutral, with TP of INR28/sh.