NHPC Ltd (NHPC)

FairStock Score: 49/100 — MIXED

Score breakdown: P/E: 1/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 1/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I am a value investor first. At ₹76.90, NHPC’s market cap is ₹77,246 Cr. Mr. Market asks 28.17 times earnings and 1.87 times book, while book value is ₹41.15. Graham’s number is ₹52.90, so I am paying a negative margin of safety of -42.39%. That alone makes me pause. The business earns ROE of 7.96% and ROCE of 7.42%, not the high returns I associate with a durable moat. Debt/equity is 1.13, free cash flow is -₹2,524 Cr, and Altman Z-score is 1.09, which suggests financial fragility. Growth is also uninspiring: sales growth 9.41% and profit growth 3.88%, but five-year revenue CAGR is only 0.73%. PEG is 12.55, and EV/EBITDA is 554.12—numbers that tell me the price is not supported by earnings power. The latest quarter had sales of ₹2,221 Cr and net profit of ₹321 Cr, which is fine but not enough to justify a rich multiple. Dividend yield is 2.09%, and promoter holding is 67.40%, which offers some alignment. Piotroski F-score 6/9 is okay, and FairStock 49/100 is mixed. At 52-week range ₹70.26–₹87.81, the stock is not at a panic price. For a Graham-style investor, paying above intrinsic value for low growth is speculation, not investment. As a Buffett-style investor, I would call this a slow grower, not a bargain. I want a margin of safety, improving ROCE, positive FCF, and lower leverage before considering it.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer