NHPC gains after broker initiates coverage

NHPC rose 2.80% to Rs 31.20 at 11:31 IST on BSE after a domestic brokerage firm initiated coverage on the stock with a 'buy' rating and a target price of Rs 37 per share.

Meanwhile, the S&P BSE Sensex was down 4.47 points, or 0.01% to 33,935.83.

On the BSE, 4.96 lakh shares were traded in the counter so far, compared with average daily volumes of 5.39 lakh shares in the past two weeks. The stock had hit a high of Rs 31.30 and a low of Rs 30.60 so far during the day. The stock hit a 52-week high of Rs 34.50 on 22 June 2017. The stock hit a 52-week low of Rs 25.60 on 27 December 2016.

The brokerage stated that the valuations of the NHPC shares are attractive at one-time book value and 6% dividend yield. NHPC's earnings are at inflexion after five years of stagnation, the brokerage added.

Net profit of NHPC declined 34.5% to Rs 1018.64 crore on 16.5% decline in net sales to Rs 1971.42 crore in Q2 September 2017 over Q2 September 2016.

NHPC is ranked as a premier organization in the country for development of hydropower.

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