IIFL Institutional Equities, a part of the IIFL Group, one of the leading players in the Indian financial services space, recommends ‘Buy’ on NHPC.
IIFL said, “While we see a low risk to FY12 estimates, we lower FY13-14 EPS to build in further delays in capacity adds. Commercialisation of new projects is key to NHPC’s outperformance hereon; as such valuations at 0.8x FY12ii consol BV are attractive”.
The company’s 3QFY12 adjusted PAT growth of 16% YoY was in line with our expectation. Operationally, NHPC’s capacity index was well above the benchmark; unlike other thermal gencos, NHPC did not faced backing down, leading to any loss of incentives, the brokerage added.
The report was published by IIFL’s Institutional Equities Research desk.