Investors are watching NHPC again after CLSA upgraded the stock, expecting a big profit boost from new capacity coming online by FY26.
CLSA’s bullish rating and target price
CLSA named NHPC a “high‑conviction outperform” and set a price target of Rs 117 per share. That’s about a 42% upside from the current Rs 82 closing price.
Capacity expansion to drive earnings
The broker expects NHPC’s installed hydro capacity to grow roughly 64% year‑on‑year by FY26. More capacity should translate into much higher earnings, with an estimated 90% rise in earnings per share between FY25 and FY27.
Funding plan and project pipeline
NHPC’s board approved up to Rs 2,000 crore of non‑convertible, non‑cumulative bonds to fund the expansion. Key projects include:
- Full commissioning of the Subansiri Lower Hydro Project (the company’s second‑largest) by Q4 FY26.
- Award of four new hydro projects and one pumped‑storage project in 2026.
Recent stock performance
Over the past year, NHPC shares have risen about 5%, lagging behind the Nifty 50’s ~10% gain. CLSA believes the upcoming scale‑up and project execution could change that trend.
What this means for investors
If the capacity upgrades and new projects deliver as expected, the stock could see a sizable price increase, aligning with CLSA’s target. However, investors should consider the usual risks of large infrastructure projects.
Remember, this is an opinion, not a guarantee. Do your own research or consult a certified advisor before making any investment decisions.