Buy this multibagger state-run utility stock for over 44% potential upside, says CLSA

Hong Kong-based global brokerage CLSA has placed NHPC in its high conviction outperform list with the target at Rs 117 implying potential gains of over 44 per cent from the previous close. The brokerage said Parbati 2 hydroelectric power project (P2 HEP) can be commissioned in April.

Furthermore, the brokerage believes that the state-run utiltiy's capacity may be increased to 11.5 per cent in the next 10 years from the P2 power project. Also, the FY24-34CL, revenue earming equity (REE) is expected to be 2.6 times.

Also, of the total capacity, only 17 per cent of the company's capacity is currently operational.

Going into the next 5 years, the company could clock 113 per cent growth, while EPS or earning per share in FY36 may increase by as much as 21 per cent. Besides, the company's FY26CL - RoE wil be increased by 186 bps.

NHPC approves borrowing plan

The Board of NHPC at its meeting held on 19 March 2025 has approved a  borrowing plan for raising of debt up to Rs.6,300 crore during FY 2025-26 through Secured/ unsecured, Redeemable, Taxable, Non-cumulative Non-Convertible Corporate Bonds in one or more series/tranches on private placement basis and/ or raising of Term loans/ External Commercial Borrowings (ECB) in suitable tranche.

Also Read: BHEL jumps 3% as it bags Rs 11,800-crore Chhattisgarh power project; stock up 23% in a month

NHPC share price performance

In the last 3 years, the stock has delivered multibagger return to the tune of 205 per cent, while in the last one year it has cracked 7 per cent.