ScoreWhy is NHPC Ltd ?
1
Low ability to service debt as the company has a high Debt to EBITDA ratio of 4.50 times
- Low ability to service debt as the company has a high Debt to EBITDA ratio of 4.50 times
- The company has been able to generate a Return on Equity (avg) of 9.25% signifying low profitability per unit of shareholders funds
2
Poor long term growth as Net Sales has grown by an annual rate of -0.15% and Operating profit at -0.59% over the last 5 years
3
The company has declared negative results for the last 2 consecutive quarters
- PAT(Q) At Rs 231.23 cr has Fallen at -52.5 %
- INTEREST(Q) At Rs 655.50 cr has Grown at 117.32 %
- OPERATING PROFIT TO INTEREST (Q) Lowest at 1.56 times
4
With ROCE of 5.4, it has a Very Expensive valuation with a 1.6 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -9.30%, its profits have fallen by -27%
Real-Time Research ReportHow much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Power Generation/Distribution)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is NHPC Ltd for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
NHPC Ltd
-9.3%
-0.26
35.85%
SENSEX
0.45%
0.03
14.48%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
-0.15%
EBIT Growth (5y)
-0.59%
EBIT to Interest (avg)
6.83
Debt to EBITDA (avg)
4.97
Net Debt to Equity (avg)
0
Sales to Capital Employed (avg)
0.16
Tax Ratio
37.42%
Dividend Payout Ratio
52.66%
Pledged Shares
0
Institutional Holding
19.95%
ROCE (avg)
6.96%
ROE (avg)
9.25%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
31
Industry P/E
21
Price to Book Value
2.11
EV to EBIT
28.08
EV to EBITDA
21.86
EV to Capital Employed
1.62
EV to Sales
11.71
PEG Ratio
NA
Dividend Yield
2.30%
ROCE (Latest)
5.40%
ROE (Latest)
7.39%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Mildly Bearish
Dow Theory
Mildly Bullish
No Trend
OBV
Mildly Bullish
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend0What is working for the Company
NO KEY POSITIVE TRIGGERS
-29What is not working for the Company
PAT(Q)
At Rs 231.23 cr has Fallen at -52.5 %
INTEREST(Q)
At Rs 655.50 cr has Grown at 117.32 %
OPERATING PROFIT TO INTEREST (Q)
Lowest at 1.56 times
DEBT-EQUITY RATIO(HY)
Highest at 0.85 times
PBT LESS OI(Q)
Lowest at Rs 70.44 cr.
NON-OPERATING INCOME(Q)
is 82.42 % of Profit Before Tax (PBT
EPS(Q)
Lowest at Rs 0.23
Loading Valuation Snapshot...
Here's what is not working for NHPC Ltd
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 70.44 cr has Fallen at -78.20 %
Year on Year (YoY)MOJO Watch
Near term PBT trend is very negative
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 231.23 cr has Fallen at -52.5 %
Year on Year (YoY)MOJO Watch
Near term PAT trend is very negative
PAT (Rs Cr)
Interest - Quarterly
At Rs 655.50 cr has Grown at 117.32 %
Quarter on Quarter (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
Operating Profit to Interest - Quarterly
Lowest at 1.56 times
in the last five quartersMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Interest - Quarterly
Highest at Rs 655.50 cr
in the last five quarters and Increased by 117.32 % (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
Profit Before Tax less Other Income (PBT) - Quarterly
Lowest at Rs 70.44 cr.
in the last five quartersMOJO Watch
Near term PBT trend is negative
PBT less Other Income (Rs Cr)
Non Operating Income - Quarterly
is 82.42 % of Profit Before Tax (PBT)
MOJO Watch
The company's income from non business activities is high; which is not a sustainable business model
Non Operating Income to PBT
Earnings per Share (EPS) - Quarterly
Lowest at Rs 0.23
in the last five quartersMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (Rs)
Debt-Equity Ratio - Half Yearly
Highest at 0.85 times
in the last five half yearly periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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