NHPC shares rise after four days on govt nod to expenses for Arunachal project

Shares of NHPC Ltd gained after four sessions of fall today after the Cabinet Committee on Economic Affairs (CCEA) cleared Rs 1,600 crore expenditure for the implementation of Dibang Multipurpose Project (2880 MW) in Arunachal Pradesh.

The estimated cost of the project is Rs 31,876.39 crore, including budgetary support of Rs 6,159.40 crore towards flood moderation component and Rs 556.15 crore towards enabling infrastructure (i.e. roads, bridges, etc.).

NHPC stock gained 2.21% to Rs 39.15 against the previous close of Rs 38.30 on BSE. NHPC shares are trading higher than the 5 day and 200 day moving averages but lower than 20 day, 50 day and 100 day moving averages. The stock has gained 41.35% in a year but fallen 2.27% in 2023.

In terms of technicals, the relative strength index (RSI) of NHPC stands at 34, signaling it's neither oversold nor overbought. NHPC stock has a one-year beta of 0.5, indicating very low volatility during the period.

NHPC shares are trading higher than the 5 day and 200 day moving averages but lower than 20 day, 50 day and 100 day moving averages.

A total of 1.20 lakh shares of the firm changed hands amounting to a turnover of Rs 46.77 lakh on BSE. The market cap of the firm rose to Rs 38,974 crore on the BSE.

The share hit a 52-week high of Rs 46.90 on October 27, 2022 and a 52 week low of Rs 27.05 on February 28, 2022.

“The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Shri Narendra Modi has accorded approval for incurring expenditure on preinvestment activities and various clearances for Dibang Multipurpose Project (MPP) in Arunachal Pradesh for an amount of Rs. 1600 crore. The project is being developed by NHPC Limited. The estimated total cost of Project is Rs. 28,080.35 crore including IDC & FC of Rs 3974.95 crore at Jun'18 price level. The estimated completion period for the project shall be nine years from receipt of Government sanction. The project shall generate 2880MW (12x240MW) power to produce 11223MU of energy in a 90% dependable year. This is the largest ever Hydro Electric Project to be constructed in India,” said state-owned NHPC in a communication to the bourses.

In the third quarter of the current fiscal, NHPC reported a12.59 per cent fall in its consolidated net profit to Rs 775.99 crore, mainly due to higher expenses.

The consolidated net profit of the company stood at Rs 887.76 crore in the quarter ended December 2021. Total income rose to Rs 2,691.34 crore in the third quarter from Rs 2,373.72 crore a year ago.

Expenses climbed to Rs 1,303.06 crore in the December quarter from Rs 1,259.28 crore in the year-ago period.

The board of the company also announced an interim dividend at the rate of 14 per cent (Rs 1.40 per equity share) on the face value of paid-up equity shares of Rs 10 each for the financial year 2022-23.

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