Miniratna multibagger penny stock announces exclusive MoU; government allots new pump hydro storage site

The stock has delivered multibagger returns of more than 125 per cent in just 3 years

On Friday, the shares of NHPC Limited soared 6.75 per cent to trade on an intraday high and low of Rs 45.39 per share and Rs 44.96 per share, respectively on BSE. 

The National Hydropower Power Corporation (NHPC), a Miniratna category I public sector utility and the Maharashtra government have signed a Memorandum of Understanding (MoU) for the construction of pumped storage systems and other renewable energy projects in the state. 

It plans to build four pumped storage projects with a total capacity of 7,350 MW. 

Pumped storage systems use the surplus from thermal power plants or other sources to pump water from the lower reservoir to the upper reservoir and recreate power when there is a power shortage. 

In addition to this, NHDC was allotted a pump hydro storage site in Madhya Pradesh with a storage capacity of 525 MW x 6 hours by the new renewable energy department of the Government of Madhya Pradesh. 

The company has reported positive numbers in the financial year ending March 31, 2023. Furthermore, the company has also announced a final dividend of Rs 0.45 per share for the financial year 2022-23. This is in addition to an interim dividend of Rs 1.40 per share. 

NHPC Limited is the government of India's main hydropower generation corporation. The company's primary business is the generation and sale of bulk power to various Power Utilities. Its additional lines of operation include project management, construction contracts, consulting assignments, and power trading. 

The stock has given multibagger returns of more than 125 per cent in just 3 years. 

Investors to keep a close eye on this trending stock.