NHPC shares: CLSA expects stock to double in four years 

Shares of hydropower producer NHPC Ltd gained 7% today after global brokerage CLSA maintained its 'high conviction outperform' rating on the state-run renewable power player. The brokerage is bullish on the likely commissioning of the Parbati-II HE (hydroelectric) project in Himachal Pradesh in early April.

CLSA kept its target price unchanged at Rs 117 per share, implying a 44 percent upside from the current levels. 

NHPC stock rose 7% to Rs 86.91 on Friday on BSE. Market cap of the firm stood at Rs 85,463 crore. The power sector stock has lost 5.12% in a year and fallen 11% in six months.

NHPC stock logged a turnover of Rs 24.50 crore with 28.72 lakh shares changing hands on BSE. The stock touched its record high of Rs 118.85 on July 15, 2024 and slipped to its a 52-week low of Rs 71.01 on February 12, 2025.

Listing out details about the project, 50 percent of the project's capacity has been achieved at 110 percent load for 12 hours. The remaining capacity is likely to be ready by March-end. The project has taken 25 years due to its complexity. It was initially planned for completion in seven years. 

CLSA said Parbati-II will raise NHPC's capacity by 11.5 percent and boost regulated equity by FY26.

According to the brokerage, NHPC's stock price could rise in the next four years.

Earlier, CLSA had hiked its rating on NHPC to 'high-conviction outperform' from 'outperform' in February 2025. 

The levels of growth can come from the start of the Parbati 2 hydro project, boosting regulated equity 27 percent in Q1FY25 along with the firm's entry into shorter-duration regulated pump storage, said the brokerage. 

NHPC Limited is engaged in the generation and sale of bulk power to various power utilities. The company’s other business activities include project management / construction contracts/ consultancy assignment services and trading of power. The company’s power stations include Salal, Dulhasti, Kishanganga, Nimoo Bazgo, Chutak, Baira Siul, Tanakpur, Dhauliganga, Rangit, Loktak, Indira Saga, Chamera - I, Uri - I, Chamera - II and Omkareshwa.