LIC-backed power generation stock jumps over 5 per cent with heavy volume; Company signs PPA worth Rs 846.66 crore with GUVNL for 200 MW capacity solar power project
The stock gave multibagger returns of 115 per cent in just 1 year whereas BSE Sensex Index was up by 22 per cent in the same period.
On Friday, one multibagger power stock was trading in the green, up 5.35 per cent to Rs 107.40 per share from its previous closing of Rs 101.95. The stock’s 52-week high is Rs 118.45 and its 52-week low is Rs 48.45. The shares of the company saw a spurt in volume by more than 1.01 times on BSE.
The stock name is National Hydroelectric Power Corporation Limited (NHPC Ltd).
NHPC signed a Power Purchase Agreement (PPA) with Gujarat Urja Vikas Nigam Limited (GUVNL) on June 27, 2024, for a 200 MW capacity solar power project within GSECL’s RE Park at Khavda (GSECL Stage-3). As already intimated, the estimated financial implication for the Project would be Rs.846.66 crore (approx.). The scheduled completion period for the Project is 15 months from the date of execution of the PPA.
NHPC, India's leading hydropower company, generates and sells bulk power. It also manages construction projects, offers consultancy services, and trades power. With a current capacity of 7,097 MW, primarily from hydro sources, NHPC actively develops new projects, including 15 solar and hydro initiatives totalling 10,449 MW. It plans to add 800 MW in FY25 and 2,000 MW in FY26 while venturing into solar with a recently commissioned 380 MW project and plans for an additional 2,000 MW. Aiming to diversify, NHPC has signed MoUs with several states for pumped storage and renewable energy projects and is exploring asset monetization options.
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According to the financials, NHPC Ltd has a market cap of over Rs 1,00,000 with a 3-year stock price CAGR of 56 per cent. The company has been maintaining a healthy dividend payout of 50.7 per cent. The stock has a PE of 28x, an ROE of 10 per cent and an ROCE of 8 per cent. As of June 2024, LIC owns a 3.84 per cent stake in the company.
The company reported positive numbers in its Quarterly Results (Q4FY24) and annual results (FY24). The stock gave multibagger returns of 115 per cent in just 1 year whereas BSE Sensex Index was up by 22 per cent in the same period.
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Disclaimer: The article is for informational purposes only and not investment advice.
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