NHPC Q4 Results Review - Protracted Delay In Commissioning Of Under Construction Projects: ICICI Securities

ICICI Securities Report

NHPC Ltd. is operating its hydro power plants on a regulated basis. Its earnings in the near term (or next 24 months) will likely be driven by the addition of new hydro power plants of 2.9 gigawatt. As a result, we estimate the regulated equity to increase by 75%.

However, 2.9 GW of power plants awaiting completion are witnessing further delays – six to 12 months; may possibly lead to downward revisions in consensus estimates too.

Note that NHPC is looking to add additional 6.3 GW and starting work on pumped storage projects (both in the medium term).

We resume coverage with a Sell with an SoTP-based target price of Rs 80, valuing the standalone business at 15 times FY26E earnings per share of Rs 4.9/share

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