The government recently received an interim dividend of ₹ 997.75 crores from State-owned hydropower giant NHPC for 2022-2023, according to the company’s statement.
NHPC had already paid an interim dividend of ₹ 356.34 crores to the government during the financial year 2022-23 as the company had declared a final dividend for the financial year 2021-22.
Therefore, the company has paid a total dividend of ₹ 1354.09 crores to the government during the financial year 2022-2023.
NHPC’s shares were trading at ₹ 39.90 apiece at 02:35 PM on Friday. The company has a dividend yield of 4.73%. It had announced a dividend of ₹ 1.40 on February 07, 2023, and a final dividend of ₹ 0.50 apiece on May 25, 2022.
NHPC is a Miniratna Category I PSU (Public Sector Utility), primarily involved in the generation and sale of bulk power to various utilities. Its other business activities include providing project management/construction contracts/ consultancy assignment services and trading of power.
The PSU is a mid-cap company with a market capitalization of ₹ 40,331 crores. It has a return on equity of 10.37% and an ideal debt-to-equity ratio of 0.70. Moreover, its shares were trading at a price-to-earnings ratio of 10.86, which is lower than the industry P/E of 17.21, indicating that the stock might be undervalued as compared to its peers.
Written by Simran Bafna
