NHPC shares gain as firm to set up solar power project in Gujarat

Shares of hydropower producer NHPC Ltd gained over 3% in early deals today after the firm said it has bagged a 200 MW Capacity Solar Power Project to be set up in M/s Gujarat State Electricity Corporation Ltd. (GSECL) 1125 MW RE Park at Khavda (Gujarat). The estimated cost of the project is Rs 846.66 crore.

"Gujarat Urja Vikas Nigam Limited (GUVNL) has issued a Letter of Intent dated 14.03.2024 to NHPC Limited for 200 MW capacity Solar Power Project within 1125 MW GSECL’s RE Park at Khavda (GSECL Stage-3). The estimated financial implication for the said Solar Power Project would be Rs 846.66 crore (approx.)," said NHPC.

NHPC stock zoomed 3.18% intraday to Rs 87.74 in the current session against the previous close of Rs 85.03 on BSE.  Market cap of the firm climbed to Rs 83,042 crore. Later, the stock saw some profit-booking and was trading 2.67% lower at Rs 82.76 on BSE.

The power sector stock has surged 101% in a year and gained 25% from its 52-week low.

NHPC stock also logged a high turnover of Rs 43.67 crore on Friday with 51.38 lakh shares changing hands on BSE. The stock touched its record high of Rs 115.85 on February 5 this year.

Riyank Arora Technical Analyst at Mehta Equities said, “The stock has tested a major support mark of Rs 77 on its daily charts. With the overall trend being positive and the stock continuing to move in an uptrend, it looks poised for a good move towards Rs 90 and Rs 95, gradually over the period of time. A strict stop loss should be kept at Rs 72 for all the active long positions.”

In terms of technicals, the relative strength index (RSI) of the stock stands at 45.9, signaling it's trading neither in the overbought nor in the oversold zone. It has a one-year beta of 1, signaling average volatility during the period.

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

NHPC reported a 26.77 per cent fall in its consolidated net profit to Rs 491.90 crore as against Rs 671.67 crore in the corresponding period of last fiscal. Revenue from operations slipped 20.42 per cent in the December 2023 quarter compared to Rs 2,055.50 crore in the year-ago period. NHPC also announced an interim dividend of Rs 1.4 a share for the financial year 2023-24.

Meanwhile, the equity market was trading lower on Friday. Sensex fell 413 points to 72,684 and Nifty lost 158 pts to 21,988. 

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.