NHPC Q3 FY 2011 - 2012 Result Analysis

NHPC (National Hydro Power Corporation), India's largest hydro power company, reported 29% decline in net profit at Rs 212 crore for the quarter ended December 31, 2011.

The company had posted a net profit of Rs 301 crore in the corresponding quarter of the previous financial year.

NHPC Results & Valuation

NHPC has reported consolidated FY11 net profit at Rs 2,316 crore versus Rs 2,175 crore reported in FY10. Its consolidated net sales were down at Rs 4,965 crore versus Rs 5,048 crore.

At the CMP of Rs. 24.80 the stock is available at a PE multiple of 13.2. The current market cap of the company is Rs. 30,500 crores. 52 week high/low for the stock is 34.40 / 22.25.

NHPC Ltd came out with an IPO in August 2009 at a price of Rs. 36. The stock has been consistently below its IPO price since its listing. But the underperformance would soon be over as lot of capacity will come on stream in next 2 years and the company would show good growth in both revenue and profits.