Low PE stock under Rs 100: This Mini Ratna power company signs MoU with Andhra Pradesh Power Generation Corporation Limited!
The stock gave 49 per cent returns in 1 year and gave multibagger returns of 102 per cent in 2 years.
NHPC Limited signed a memorandum of understanding (MoU) with Andhra Pradesh Power Generation Corporation Limited (APGENCO) on August 23, 2023 for the implementation of pumped storage hydropower projects and renewable energy (Solar/ floating solar/ wind) projects in Andhra Pradesh.
The MoU provides a framework under which parties may collaborate and cooperate to form a joint venture company (JVC) under the Companies Act, 2013 to implement techno-commercially viable pumped storage hydropower project(s) and other renewable energy (solar/ floating solar/ wind) project(s) allotted by Government of Andhra Pradesh, under Joint Venture mode in phases, operate the plants, trading and sale of power generated in the plants.
Earlier, the company entered into a Memorandum of Understanding (MoU) with the Department of Energy, Government of Maharashtra for the establishment of Energy Storage Systems (Pumped Storage Systems) along with other renewable energy sources (like Solar/ Wind/ Hybrid etc.) with a total capacity of 7,350 MW.
NHPC, a Mini Ratna category I public sector utility, is the Government of India’s flagship hydroelectric generation company. The company is primarily involved in the generation and sale of bulk power to various Power Utilities.
On Thursday, shares of NHPC Ltd surged 0.04 per cent to Rs 50.55 per share with an intraday high of Rs 51.78 and an intraday low of Rs 50.26.
According to the financials, NHPC Ltd has a market cap of over Rs 44,000 crore with a 3-year CAGR of 30 per cent. The net sales increased by 21.17 per cent and net profit increased by 41.47 per cent in Q4FY23 over Q4FY22. The company has a market cap of over Rs 50,000 crore.
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The shares of the company have a PE of 13x whereas the industry PE is 32.6x. The stock gave 49 per cent returns in 1 year and gave multibagger returns of 102 per cent in 2 years. Investors should keep an eye on this Large-Cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.