NHPC Limited
NHPC Limited Fundamental Analysis
NHPC Limited (NHPC.NS) shows strong financial fundamentals with a PE ratio of 17.97, profit margin of 37.24%, and ROE of 10.33%. The company generates $115.9B in annual revenue with strong year-over-year growth of 12.12%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 44.8/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze NHPC.NS's fundamental strength across five key dimensions:
Efficiency Score
WeakNHPC.NS struggles to generate sufficient returns from assets.
Valuation Score
ExcellentNHPC.NS trades at attractive valuation levels.
Growth Score
ModerateNHPC.NS shows steady but slowing expansion.
Financial Health Score
ModerateNHPC.NS shows balanced financial health with some risks.
Profitability Score
WeakNHPC.NS struggles to sustain strong margins.
Key Financial Metrics
Is NHPC.NS Expensive or Cheap?
P/E Ratio
NHPC.NS trades at 17.97 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, NHPC.NS's PEG of 0.71 indicates potential undervaluation.
Price to Book
The market values NHPC Limited at 1.88 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 4.78 times EBITDA. This is generally considered low.
How Well Does NHPC.NS Make Money?
Net Profit Margin
For every $100 in sales, NHPC Limited keeps $37.24 as profit after all expenses.
Operating Margin
Core operations generate 28.42 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $10.33 in profit for every $100 of shareholder equity.
ROA
NHPC Limited generates $3.60 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
NHPC Limited produces operating cash flow of $15.79B, showing steady but balanced cash generation.
Free Cash Flow
NHPC Limited generates weak or negative free cash flow of $-35.02B, restricting financial flexibility.
FCF Per Share
Each share generates $-3.49 in free cash annually.
FCF Yield
NHPC.NS converts -4.53% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
17.97
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.71
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.88
vs 25 benchmark
P/S Ratio
Price to sales ratio
6.68
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.26
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.04
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.10
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.03
vs 25 benchmark
How NHPC.NS Stacks Against Its Sector Peers
| Metric | NHPC.NS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 17.97 | 19.44 | Neutral |
| ROE | 10.33% | 914.00% | Weak |
| Net Margin | 37.24% | 695.00% | Weak |
| Debt/Equity | 1.26 | 20.22 | Strong (Low Leverage) |
| Current Ratio | 1.04 | 1.37 | Neutral |
| ROA | 3.60% | -4803.00% (disorted) | Weak |
NHPC.NS outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews NHPC Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
5.34%
Industry Style: Defensive, Dividend, Income
GrowingEPS CAGR
4.11%
Industry Style: Defensive, Dividend, Income
GrowingFCF CAGR
54.40%
Industry Style: Defensive, Dividend, Income
High Growth