NHPC Ltd Faces Stock Volatility Amidst Rising Debt and Declining Profits

NHPC Ltd, a prominent player in the power generation and distribution sector, has experienced significant fluctuations in its stock performance. Currently, the stock is down 37.84% from its recent highs, reflecting broader challenges within the company. Over the past year, NHPC has reported a decline of 22.95%, contrasting sharply with the Sensex's positive performance of 4.53%.
In terms of daily activity, NHPC saw a modest increase of 2.41%, while its weekly performance stands at 0.89%. However, the stock has struggled over longer periods, with a year-to-date decline of 7.37% and a one-month drop of 7.05%. Despite a strong three-year performance of 149.58% and a five-year increase of 248.48%, recent trends indicate a concerning trajectory.

Financial metrics reveal a high Debt to EBITDA ratio of 4.50 times, suggesting challenges in servicing debt. Additionally, the company has reported negative results for the last two consecutive quarters, with a significant drop in profit after tax. NHPC's current market capitalization is Rs 75,086.64 crore, and it operates with a P/E ratio of 27.06, which is notably higher than the industry average of 20.02.