In Friday’s trading session, the shares of one of the Mini-Ratna stocks specialized in the generation of hydroelectric power, in focus following plans to invest Rs. 5,500 crores in the renewable energy sector in Bihar.
Price action
With a market capitalization of 84,840 Crores on Friday, the shares of National Hydroelectric Power Corporation (NHPC) Ltd were trading at Rs 82.41 per share, a drop of 2.43 percent making a high of Rs 84.48 compared to its previous closing price of Rs 84.46.
What happened
National Hydroelectric Power Corporation (NHPC) Ltd, one of the Mini-Ratna stocks specialized in the generation of hydroelectric power plants, plans to invest ₹5,500 crore in Bihar’s renewable energy sector.
CMD Raj Kumar Chaudhary spoke at the ‘Bihar Business Connect 2024’ event on Thursday, emphasizing that the state government’s support will be needed for both the planning and implementation of future projects.
Highlighting that Bihar has made progress in the energy sector, NHPC is committed to significant investments, including in solar power, floating solar, and storage and the company also plans to sign an MoU with the state government.
About the company
NHPC Limited is one of the largest producers of renewable energy in India, with a strong focus on hydroelectric power plants across the country.
The company operates under the ownership of the Ministry of Power, Government of India and focuses on developing, operating, and maintaining large-scale hydroelectric power plants, along with projects in thermal, solar, and wind energy.
NHPC also excels in the planning, design, and implementation of energy generation systems, with expertise in water resources management and sustainable energy solutions. Its specialization lies in harnessing the potential of water resources for clean, renewable energy, contributing significantly to India’s power generation capacity.
Future Outlook
NHPC is poised for significant growth in renewable energy, targeting 60 GW by FY32, including solar, wind, and storage projects and along with it the management remains optimistic about future capacity additions, with plans to award 13.6 GW of thermal capacity by FY27, reinforcing its commitment to energy security
Financials
The company’s revenue rose by 9.25 percent from Rs 3,113.82 crore to Rs 3,402.09 crore in Q2FY24-25. Meanwhile, Net profit declined from Rs 1,545.85 crores to Rs 908.97 crore during the same period.
Key Financial ratios
NHPC Limited has an Return on Equity (RoE) of 7.42 percent and a Return on Capital Employed (RoCE) of 7.31 percent. Furthermore, the company’s debt-to-equity ratio is 0.85.
Written by Sridhar J
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