NHPC electrifies Street

NHPC is attracting a lot of attention; from its close of Rs.69.10, the stock opened today at Rs.70.10 and rose further to hit a new 52-week high at Rs.75. Volumes have jumped up more than 2-times.

The stock price hit a new high on its announcement that it has signed an MoU during Vibrant Gujarat Global Summit, 2024, with GPCL for proposed investment of Rs.4,000 crore in Kuppa Pumped Storage Project (750 MW), Chhota Udaipur, Gujarat.

The proposed year for commencement of investment is 2024-25.

This news apart, what also cheered the market was news of Central Electricity Regulatory Commission, in its draft tariff norms for FY25–FY29, raising the return on equity for new storage-based hydro projects—including pumped hydro—to 17% from 16.5%, keeping majority of norms for thermal and other power projects unchanged.

Following this, many fund and research houses have hiked their target price for the stock, adding more to the optimism currently around the stock.