NHPC shares rally 10% in 2 days after CLSA upgrades to ‘high conviction outperform’

However, the stock’s target price was slightly reduced to Rs 117, from Rs 120 previously.

CLSA’s bullish outlook stems from several factors. The firm believes NHPC’s stock could potentially double in the next four years. They see the recent 25% stock correction over the past six months as an attractive entry point for investors.

The global brokerage firm highlighted the start of the Parbati 2 hydro project, which has boosted NHPC’s regulated equity by 27% in the first quarter of fiscal year 2025. Additionally, CLSA noted NHPC’s entry into shorter-duration regulated pump storage as a positive development.

Looking ahead, CLSA also anticipates a doubling of regulated equity over fiscal years 2024-2028 as large projects come to fruition. This is expected to drive strong earnings per share (EPS) growth for the company.

Investors seem to have responded positively to CLSA’s optimistic assessment, with NHPC’s stock price showing a notable increase in the past 2 trading sessions.Also read: JM Financial shares in focus on receiving Rs 230 cr tax refund

NHPC share price trend

Over the past year, the shares of NHPC Ltd have declined by 12.68%, while the year-to-date (YTD) change reflects a slight drop of 1.22%. In the last six months, the price has fallen significantly by 15.64%, whereas over the past three months, it has seen a modest gain of 1.99%.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)