NHPC - 100% Green; High Dividend Yield, Attractive Valuations: ICICI Securities
A power station stands at the site of a hydro-electric power project. (Photographer: Adeel Halim/Bloomberg) 

NHPC - 100% Green; High Dividend Yield, Attractive Valuations: ICICI Securities

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Securities Report

NHPC Ltd., the largest hydroelectric power generation company in India, has seven gigawatt operational capacity split 98%/2% in favour of hydro/renewables, making it the largest ‘completely green’ power generating company in India.

Its regulated business model and capacity addition outlook (five under-construction projects) provides earnings certainty, while ever improving operational performance resulting in higher incentives will provide the extra fillip to earnings.

As a result, profit after tax is estimated to increase by 51% over FY20-FY24E (11% compound annual growth rate).

Green credentials and hydro’s must-run status backed by stricter Renewable Purchase Obligation compliance requirements provide further comfort.

Click on the attachment to read the full report:

ICICI Securities NHPC Initiating Coverage .pdf


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