A state-run Mini Ratna PSU has drawn investor consideration with its bold plan to scale up hydropower capability to 22 gigawatts (GW) by FY34. This transfer highlights the corporate’s give attention to increasing clear vitality infrastructure and supporting India’s renewable vitality targets over the subsequent decade.
Worth Motion
Throughout Friday’s buying and selling session, shares of NHPC Ltd reached an intra-day excessive of Rs.84.90 every, rising barely from the earlier closing worth of Rs.84.53 per share. Nevertheless, the shares retreated barely and closed at Rs.83.49 apiece. Over the previous 5 years, the inventory has delivered over 320 p.c returns.
What Occurred
NHPC is shifting ahead with main investments in hydropower, pumped storage tasks (PSPs), and different inexperienced vitality initiatives as a part of its long-term development technique. The corporate plans to extend its hydropower capability from the present 7.3 gigawatts (GW) to 22 GW by FY34. As well as, NHPC goals to develop roughly 20 GW of cumulative PSP capability, largely in partnership with state government-backed entities.
In keeping with NHPC Chairman and Managing Director Raj Kumar Chaudhary, the corporate intends to speculate round Rs.84,000 crores to construct this PSP capability, with the full capital expenditure anticipated to achieve practically Rs.1.2 trillion. These tasks are aligned with India’s clear vitality targets and can considerably increase NHPC’s presence within the renewable sector.
Furthermore, NHPC can be planning to listing its subsidiary, NHPC Renewable Vitality Ltd, by FY27. This transfer will come after the corporate achieves a major scale in its inexperienced vitality portfolio, additional strengthening its dedication to sustainable vitality and increasing its investor base.
Present Capability
NHPC at present has an put in capability of seven,097.2 MW from renewable sources, together with wind and photo voltaic, throughout 25 energy stations, with 1,520 MW coming from its subsidiaries.
The corporate has set bold targets to increase its capability, aiming for a complete of 23 GW by 2032 and greater than 50 GW by 2047. By 2026-27, NHPC plans to extend its put in capability to 14,561.2 MW, including 7,417 MW by way of hydro and solar energy tasks.
NHPC additionally intends to allocate over Rs.8,000 crore in capital expenditure for FY26, primarily specializing in the event of 1,620 MW of hydroelectric capability and roughly 1,490 MW of photo voltaic tasks.
Additionally learn: 1:10 Inventory Break up: NBFC inventory in focus forward of ex-split subsequent week
Joint Ventures and Tasks
NHPC has partnered with the Andhra Pradesh authorities to develop pumped storage tasks (PSPs) by way of a three way partnership referred to as ANGEL (APGENCO NHPC Inexperienced Vitality Firm). This collaboration contains two PSPs with a mixed capability of two GW, such because the 1 GW Yaganti venture and the 800 MW Rajupalem venture. The entire capability of those tasks may doubtlessly attain 6 to eight GW.
In Gujarat, NHPC has signed a Memorandum of Understanding (MoU) with Gujarat Energy Company Restricted (GPCL) to speculate roughly Rs. 4,000 crore within the 750 MW Kuppa Pumped Hydro Storage Challenge in Chhota Udaipur, with investments anticipated to start in 2024/25.
Monetary Efficiency
Turning in direction of the financials of the corporate, NHPC Ltd reported Q3 FY25 income of Rs.2,287 crore, rising 11 p.c from Rs.2,056 crore in the identical quarter final 12 months. Nevertheless, Revenue After Tax (PAT) decreased by 47 p.c to Rs.330 crore, from Rs.623 crore in the identical interval.
Written by – Siddesh S Raskar
Disclaimer
The views and funding ideas expressed by funding specialists/broking homes/score businesses on tradebrains.in are their very own, and never that of the web site or its administration. Investing in equities poses a threat of economic losses. Buyers should subsequently train due warning whereas investing or buying and selling in shares. Dailyraven Applied sciences or the writer are usually not chargeable for any losses brought about on account of the choice based mostly on this text. Please seek the advice of your funding advisor earlier than investing.
