NHPC shares in focus today as PM Modi lays foundation stone of solar power plant in Bikaner

Shares of hydropower producer NHPC Ltd are in news today after Prime Minister Narendra Modi laid the foundation stone for a 300 MW solar power plant in Bikaner, Rajasthan on February 16. NHPC will set up the project under the government's CPSU Scheme, Phase-II, Tranche-III, with a total investment of over Rs 1,732 crore. The project is scheduled to be commissioned by September 2024.

Shares of NHPC ended 0.37% higher at Rs 92.95 on BSE on February 16. The state-owned firm reported a high turnover of Rs 173.46 crore with 184.77 lakh shares changing hands on BSE. Market cap of NHPC climbed to Rs 93,368 crore. The stock touched its record high of Rs 115.85 on February 5 this year. It fell to a 52 week low of Rs 37.80 on February 27, 2023.

The electricity generated from the project will be transmitted through Bikaner-II Inter State Transmission System Substation. The project aims to make around 750 million units of green power annually, considering a capacity utilization factor (CUF) of 28.50%. This will thereby offset carbon dioxide emissions of approximately 18,000 million metric tonnes over its lifetime.

The Power Usage Agreement has been inked with Punjab State Power Corporation Limited (PSPCL), at a competitive tariff of Rs 2.45/unit for 25 years, considering Viability Gap Funding (VGF) of Rs 134.70 crore offered by the Ministry of New & Renewable Energy.

In terms of technicals, the relative strength index (RSI) of the stock stands at 58, signaling it's trading neither in the overbought nor in the oversold zone.

It has a one-year beta of 0.7, signaling low volatility during the period.

NHPC shares are trading higher than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages.

The stock has gained 127 per cent in one year and risen 40.34 per cent in 2024.

The green energy stock has a PE ratio of 25.82 against an industry PE of 21.06. The price to book ratio of NHPC is 2.28. Debt to equity ratio of the firm is 0.77.

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.

Also read: Stock recommendations by analyst for February 19: Adani Ports, SBI Life and Tata Consumer

Also read: Defence stocks: 3 key beneficiaries of Rs 84,560 crore govt push