Brokerage firm CLSA has launched a government company NHPC Ltd. Has been given a ‘High Conviction Outperform’ rating. The target price for the stock has been kept at ₹117 per share. This target is about 43% more than the closing price of the stock on Thursday. CLSA said in a note on Friday, January 9 that 2026 could be a year of major change for NHPC. The brokerage expects the company’s installed capacity to grow by 64% on a year-on-year basis. Earnings per share are estimated to grow by 90% during FY25 to FY27.
CLSA further said that this growth will further strengthen NHPC’s long-term, ten-year expansion story. CLSA has listed 3 main reasons which can give rise to the stock…
– Finalization of tariff for Parvati II project, which is approximately 25% of NHPC’s regulated equity base.
– Fully operationalized Subansiri Lower Hydro Electric Project. This is NHPC’s second largest project and is expected to be completed by the fourth quarter of 2026.
– Possibility of getting 4 hydro power projects and one pumped storage project in 2026. This can improve the visibility of the company’s earnings and growth till FY35.
NHPC shares rise
NHPC shares are rising on Friday. In early trade, the stock hit a high of Rs 83.75 on BSE, a jump of about 2 percent from the previous closing price. The market cap of the company is more than Rs 83100 crore. Currently, 8 analysts are tracking NHPC. Of these, 4 have given a ‘Buy’ rating for the stock, one has advised ‘Hold’, while 3 have given a ‘Sell’ call.