This multibagger Miniratna stock can deliver 100% returns, here's why

NHPC's shares are anticipated to double in value over the next four years, according to CLSA, driven by expedited project approvals following the suspension of the Indus Water Treaty. This recent government initiative aims to optimise the use of the Indus river's water for India, facilitating faster approvals for projects in Jammu and Kashmir. NHPC has emphasised "there is a lot of emphasis on expediting projects, especially after the Indus Water Treaty was recently suspended," which may lead to tariffs for three new projects being maintained under Rs 5.5 per kWh, enhancing their viability.

NHPC stock has delivered multibagger returns of 318% in five years and gained 334% in ten years. However, the Miniratna stock is down 14% in a year and clocked single digit returns in the short term.     

The company has announced the commencement of the Uri-I Stage-II project, a significant 240 MW undertaking. According to NHPC, "it is going to start the Uri-I Stage-II (240 MW) project, having already floated the tenders for civil works and other requirements." This move is part of NHPC's broader strategy to strengthen its infrastructure and energy production capabilities in the region, capitalising on the increased focus on water resource utilisation following the treaty suspension. Such strategic steps are expected to significantly enhance NHPC's operational capacity and market valuation.

As NHPC accelerates its project timelines, the company's proactive stance is anticipated to positively affect investor confidence. The focus on rapid project implementation underscores NHPC's potential for significant growth, reflecting a strategic shift that could redefine its position in the energy sector.

These initiatives align with broader national energy goals and NHPC's commitment to advancing its operational footprint through strategic resource management. Additionally, the increased pace of project execution is expected to contribute to a more robust energy infrastructure, aligning with national priorities for sustainable development and energy security.