Car News

CMP: 19
Target: 36 in 6 months

NHPC is a hydroelectric power generating company dedicated to the
planning,
development and implementation of an integrated and efficient network
of hydroelectric
projects in India. It is the largest hydroelectric power (HEP)
generator in the country with
13 HEP with an installed capacity of 5,175 MW which includes two
plants with an
installed capacity of 1,520 MW in its 51% owned subsidiary, Narmada
Hydroelectric
Development Corporation (NHDC) and has a cash surplus of over Rs.4,000
crore.
The country's largest hydro power producer NHPC today reported 28%
jump in net profit
for the financial year ended March 31, 2012, at Rs 2,772 crore. The
company had posted
a net profit of Rs 2,167 crore during the previous financial year
(2010-11). Net sales of
the company, however, grew 30% to Rs 5,509.65 crore compared to Rs
4,225.25 crore in
the same period last fiscal.

Currently, it is engaged in the construction of 11 additional HEP
totaling 4,622 MW and
8 of these projects totaling 1492 MW are scheduled for completion by
the year 2012. The
company also has seven HEP totaling 6,731 MW under various stages of
clearances, and
nine HEP totaling 7,255 MW, which are currently under Survey and
Investigation. With
5,175 MW of capacity under operation, NHPC accounts for almost 14% of
the 37,000
MW of hydro generating capacity in India.
It plans to increase the capacity to over 10,000 MW by end of 2012.
The coal price has risen, which will forced to increase in power price
by 20%. This will
further boost the profit margin of NHPC to a large extent.
Spanning on Government's increasing emphasis on hydro power and NHPC's
strong
hold in this segment.
At the CMP of Rs 19 we recommend our BUY rating on the stock with a
target price of
Rs 36 in 6 months.

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