On Friday, NHPC Ltd (NHPC:IN) received an upgraded stock rating by Elara Securities India, moving from 'Reduce' to 'Accumulate'. The firm also raised the price target for NHPC to INR118.00, up from the previous INR95.00.
The upgrade reflects the analyst's view of NHPC's significant rerating potential following the commissioning of its Parbati and Subansiri projects.
The analyst from Elara Securities highlighted NHPC's strong position in the clean energy sector, noting its efforts to diversify its portfolio by venturing into solar, wind, and pumped storage projects. This strategic move is expected to bolster the company's earnings and market performance in the foreseeable future.
In addition to the rating upgrade, Elara Securities introduced its earnings estimate for the fiscal year 2027 (FY27E). The firm's optimism about NHPC's future performance is underpinned by the introduction of these long-term projections.
The raised price target of INR 118 is based on a valuation multiple of 3.0 times the FY27E regulated equity, which remains unchanged from previous assessments.
NHPC's focus on expanding its clean energy capabilities comes at a time when there is a global push for sustainable and renewable energy sources.
The company's entry into new segments such as solar and wind energy, along with its existing hydroelectric projects, positions it to meet the increasing demand for cleaner energy options.
The revised price target and stock rating reflect Elara Securities' expectations for NHPC's growth and profitability. The commissioning of the Parbati and Subansiri projects is anticipated to be a significant milestone for NHPC, contributing to the company's rerating and reinforcing its status as a key player in the clean energy space.
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