NHPC Stock Price: Current Trends, Performance & Future

Introduction

If you are interested in investing in the power sector, NHPC stock price is one metric you can’t ignore. NHPC (National Hydroelectric Power Corporation) is one of India’s leading hydroelectric power developers, and its stock has been seeing interesting movements lately. From dividend payouts to revenue fluctuations, there’s a lot going on that impacts investor sentiment. In this blog we will look at current NHPC stock price, past performance, what influences it, risks, and what future might hold.

Real-Time Snapshot: Where NHPC Stands Today

So right now, NHPC is trading around ₹87-₹88 per share. It is moderately above its low, but quite below its 52-week high. Investors are watching its valuation and fundamentals carefully.

Past Performance & Financial Review

Understanding where NHPC has come from helps in seeing where it might go.

Revenue & Profit Trends

• As per latest consolidated financials, NHPC has installed capacity of ~7,233 MW (hydro + renewables), of which ~6,971 MW is hydro capacity. Screener

• In Q4 FY25, net profit rose sharply year-on-year by ~52% (from about ₹605 Cr to ~₹919.63 Cr) on the back of better operations and power sales. The Economic Times

• However, growth has been somewhat sluggish over longer term: Screener data shows very modest sales growth over past 5 years (~0.7% CAGR) and even poor margins in some years. Screener

Valuation Metrics

• P/E ratio near ~28-29 is relatively high for a PSU hydro power company. Screener+1

• Book value per share ~ ₹39-₹40. So multiple of ~2.2× on P/B ratio. Moneycontrol+2Screener+2

Share Price Returns

• In the 1 week to 1 month timeframe, NHPC stock has shown positive returns— ~5% week, ~6-7% month. The Economic Times+1

• However in the 1-year period, it is slightly negative (~ -4 to -5%) as per recent data. The Economic Times+1

• Over 3 years / 5 years horizons, performance is strong: very healthy growth, with cumulated returns in the 100-300% range for those who held long term. The Economic Times+1

What Drives NHPC Stock Price

Several factors influence NHPC’s price movements. Understanding them helps predict possible future trends.

1. Hydropower Production & Capacity Utilization

Since NHPC is primarily hydropower, water flow, rainfall, seasonal availability of resources matters a lot. If monsoon is weak, output drops—leading to lower revenue. When water reservoirs are full, operations improve.

2. Renewable Energy Expansion

NHPC is also expanding into solar, pumped storage & other renewable segments. Growth in renewables tends to give better future visibility. Investors may reward the stock if new projects are timely executed.

3. Policy & Regulatory Support

Government policy on subsidies, tariffs for hydropower, funding for PSUs, and how aggressively the renewables push happens matters. Energy demand, tariff hikes by electricity boards also matters.

4. Financials: Debt, Interest & Procurement Costs

NHPC has some debt and interest costs. When interest rates are high, servicing debt gets expensive. Also, delays in project completion raises costs. Cash flow or receivables from power purchasers (state utilities) can also delay payments, which will affect financial health.

Risks & Challenges

While the stock looks promising for many, there are risks you must consider:

• Hydropower vulnerability to climate: Weak monsoon, drought years hurt production.

• Regulatory risk: Tariff revisions, environmental clearances can delay execution.

• Interest rate risk: Rising rates increase cost of capital.

• Execution risk: Delay in projects, cost overruns, challenges in manpower or supply chains.

• Competition & alternative power sources: Solar, wind become cheaper; hydro may get less preference in some states.

Future Outlook: What Analysts Are Saying & What Could Be Ahead

Analysts and investment houses have some cautious optimism for NHPC.

• JM Financial recently made a Buy recommendation with target price ~ ₹100 per share. The Economic Times

• Expected growth in renewable capacity, especially pumped hydro & solar hybrid, may support long-term value.

• Dividend payout has been consistent in recent years; yield ~2.17-2.2%, which appeals to income investors. Groww+2Moneycontrol+2

Projection Scenarios

Should You Invest in NHPC Stock Price Now?

Here are some tips/guide to decide if now is good entry point:

• If you are a long-term investor (3-5 yrs+), NHPC offers dividends + project growth potential. The stock is not expensive if you believe in hydropower + renewable hybrids.

• For short term traders, recent upward moves are giving some momentum, but expect volatility (weather, policy, etc).

• Use valuation metrics: The P/E and P/B are somewhat high; so entering at a better price (discount) gives margin of safety.

Conclusion

The NHPC stock price today (~ ₹87-₹88) reflects both the strengths and the challenges faced by the company. Its strong hydropower base, expansion into renewables, and decent returns over long term are positives. But concerns over monsoon dependency, regulatory delays, interest costs and competitive pressures remain real.

If you are patient and believe in India’s renewable + hydropower future, NHPC seems reasonable buy with upside potential. But don’t ignore risks. Always balance your portfolio accordingly and do your homework.

FAQs

Q1: What was NHPC’s recent one-year return?
NHPC’s one-year return is about -4% to -5%, reflecting a dip compared to its highs, as the stock has faced both market pressure and some weak performance periods. The Economic Times+1

Q2: What is the dividend yield of NHPC?
The current dividend yield is about 2.17-2.19% per annum, based on recent payouts. Investors looking for steady income might find it appealing. Groww+2The Economic Times+2

Q3: Is NHPC stock price overvalued now based on P/E?
By many standards, yes: P/E ~28-29 is somewhat high for a hydro PSU, unless growth from renewables or tariff hikes offsets risk. So valuation is slightly elevated; entry price matters. Screener+1