Posted on March 28, 2025, by Niftynews
NHPC shares have experienced a notable surge of 5%, currently trading at Rs 85.4 on March 28, 2025. This jump comes amid a 0.2% increase in the BSE POWER Index, which is currently at 6,667.5. The BSE POWER index tracks the performance of companies in the power sector, with NHPC being one of the prominent players in this space.
Along with NHPC, other power sector stocks such as BHEL (up 0.8%) and ABB (up 0.4%) are showing positive movement today. However, Thermax and Power Grid Corporation are among the top losers, with Thermax falling by 2.4% and Power Grid Corp. down by 1.2%.
NHPC’s One-Year Performance
Over the past year, NHPC shares have seen a slight decline, moving from Rs 85.7 to Rs 85.4, reflecting a modest loss of Rs 0.3, or 0.3%. Despite this, the stock’s 5% gain today signals a possible short-term rebound, indicating investor optimism around the company.
The BSE POWER Index, on the other hand, has seen more significant growth over the past 12 months, rising from 6,546.4 to 6,667.5, a 1.9% increase. The top performers within the BSE POWER Index over the past year include Indian Energy Exchange, which surged 33.5%, KEC International (up 18.3%), and NTPC (up 10%). These gains reflect the positive momentum in India’s power sector, despite challenges in the broader market.
Financial Update: NHPC’s Performance
In terms of financial performance, NHPC reported a 44.4% year-on-year drop in net profit for the quarter ended December 2024, amounting to Rs 2,952 million. This was compared to a profit of Rs 5,308 million during the same period the previous year. Despite this decline in profitability, the company did manage to increase its net sales by 11.3%, from Rs 20,555 million in the October-December 2023 period to Rs 22,868 million in the latest quarter.
Looking at the full-year performance for FY24, NHPC saw a 5.5% decrease in net profit, reporting Rs 40,280 million compared to Rs 42,608 million in FY23. Revenues also fell by 9.2%, dropping to Rs 96,322 million for FY24, down from Rs 106,498 million in FY23. This decrease in both profit and revenue indicates some challenges for the company, which may be reflecting broader industry pressures or internal operational hurdles.
Despite these challenges, NHPC’s Price-to-Earnings (P/E) ratio remains 31.8, based on rolling 12-month earnings. This P/E ratio suggests that the market still sees significant value in the company, despite the recent dips in profits.
Stock Market Performance: Sensex and Nifty
In broader market news, the BSE Sensex is currently at 77,459.2, marking a 0.2% decline, with M&M and Infosys among the top losers, down by 3.4% and 1.6%, respectively. The NSE Nifty is also showing a 0.2% decline, currently at 23,543.3, with M&M and Wipro underperforming.
Over the last 12 months, the BSE Sensex has registered a 6.9% increase, rising from 72,470.3 to 77,459.2, while the NSE Nifty has also seen a positive movement of around 6.4% during the same period.
What’s Next for NHPC Shares?
As NHPC shares continue to show a positive trend today, rising by 5%, investors will be watching to see if this momentum can be sustained. The BSE POWER Index’s slight increase of 0.2% today also indicates that the power sector is seeing cautious optimism.
Despite recent financial challenges, NHPC’s performance today could be a sign of investor confidence returning to the stock. If the company can overcome its profit decline and focus on increasing its revenue streams, there may be further opportunities for growth in the coming quarters.
Conclusion
NHPC shares are in focus today, rising 5% on the back of a positive BSE POWER Index movement and growing investor interest. While the company’s financials have shown some signs of weakness with a 44.4% drop in quarterly profit, its positive market movement today is a hopeful sign. Investors should keep an eye on further updates, especially in terms of new projects and financial performance, to gauge the long-term potential of NHPC shares in the power sector.
