Should I buy NHPC stock in 2025? Full India Analysis

Why trust HelloSafe ?

At HelloSafe, our expert has been tracking the performance of NHPC for over three years. Every month, hundreds of thousands of users in India trust us to analyse market trends and identify the best investment opportunities. Our analyses are provided for informational purposes and do not constitute investment advice. In accordance with our ethical charter, we have never been, and will never be, compensated by NHPC.

What is NHPC?

NHPC Stock Price

The price of NHPC stock is rising this week. As of now, NHPC trades at ₹85.04, up 0.08% in the last 24 hours, but showing a slight 0.40% drop over the week. The market capitalization stands at ₹85,443 crores, with an average daily trading volume of 13.65 million shares over three months. The stock's P/E Ratio is 28.4, its dividend yield is 2.24%, and the beta is 1.13, reflecting moderate market volatility and opportunities for well-informed investors.

Our full analysis of NHPC stock

After a thorough review of NHPC’s latest financial results and a careful study of its share performance over the past three years, our analysts utilized a dynamic blend of proprietary financial, technical, and market data—benchmarked against industry competitors. This multi-layered approach reveals signals often missed by classic stock screeners. So, why might NHPC stock once again become a strategic entry point into India’s renewable energy sector in 2025?

Recent performance and market context

NHPC has demonstrated resilience against a backdrop of a highly competitive and rapidly evolving Indian energy sector. The stock closed at ₹85.04 on 4 July 2025, reflecting a modest gain of +0.08% on the day, while maintaining a steady advance of +2.35% over the past six months. Despite a one-year drawdown of about -16%, this recent stability and positive six-month trend suggest that the correction phase may be maturing, and a recovery could be in place.

Key positive developments include the commissioning of the 200 MW Parbati-II unit, significant new project funding approvals (₹6,300 crores), and strategic MoUs with state governments for solar expansion. NHPC’s continuous alignment with India’s renewable mandates further fortifies its long-term market position. The sector’s bullish underpinnings are driven by robust government policy support, surging demand for clean energy, and ambitious decarbonization targets, putting NHPC at the right place at the right time.

Technical analysis

Current technical signals position NHPC as an increasingly interesting setup. The 14-day RSI is neutral at 47.9, neither overbought nor oversold, indicating the stock is consolidating after a corrective period. The MACD is lightly negative (-0.12), a signal often seen in maturing downtrends, and may be on the verge of a bullish crossover if buying pressure resumes.

Moving averages cluster tightly around the current price, with the 20-day at ₹84.91 and the 100-day at ₹84.59, suggesting strong local support and a potential base-building process. The 200-day at ₹86.25 caps immediate upside, but a decisive breakout could trigger a new bullish leg. Intraday support at ₹84.31 and major longer-term support at ₹75 strengthen confidence in downside protection. A reversal above the immediate resistance at ₹85.65, or the broader ₹90–95 band, would likely confirm a fresh upward impulse, making the present range a compelling accumulation zone for medium-term positioning.

Fundamental analysis

NHPC’s fundamentals continue to justify renewed optimism. The company’s Q4 FY25 net profit surged by 52% year-on-year to ₹919.63 crores, accompanied by revenue of ₹2,672.11 crores, both exceeding consensus forecasts. Such robust performance signals not only operational excellence but also effective project execution and cost management.

NHPC’s PE ratio of 28.4, while above sector median, reflects its dominant market share, government backing (67.4% holding), and future earnings resilience given its multi-GW project pipeline. The stock’s dividend yield of 2.24% provides an appealing income buffer, underlining its attractiveness for stability-oriented portfolios. With the company’s estimated 50,000 MW project pipeline and diversification into solar and wind, the growth runway is extensive.

Structural strengths are reinforced by NHPC’s status as India’s largest hydropower developer, strong state support, a growing brand presence, and the ability to forge beneficial partnerships with regional power boards and authorities. This unique blend of scale, execution capability, and innovation makes NHPC’s long-term fundamentals increasingly compelling.

Volume and liquidity

Daily trading volumes average 13.65 million shares, reflecting ample liquidity—a strong positive for institutional and retail investors alike. This sustained volume signals lasting market confidence in NHPC’s trajectory. Moreover, the public float of 32.6% ensures there is enough room for market-driven price discovery and potentially dynamic revaluation as bullish catalysts materialize.

Catalysts and positive outlook

• Project expansion: Commercial operation of new hydro and solar projects, including imminent 50 MW solar ventures, will boost top-line contributions.
• Industry leadership: NHPC is unrivalled in the hydro segment, and strategic diversification into renewables further mitigates regulatory or segment-specific risks.
• Government policy: India’s 2030 renewable targets and schemes like PLI (Production Linked Incentive) provide a tailwind for NHPC’s expansion and project approvals.
• ESG momentum: Investors continue to favour companies meeting strict environmental and governance criteria; NHPC’s low-carbon core and robust governance are major positives.
• Financial stability: Ample credit lines, net cash positions, and strong dividend history enhance resilience through cycle downturns or unforeseen challenges.

Market sentiment is buoyed by the recent appointment of Rajendra Prasad Goyal as Managing Director, which signals continuity in leadership and confidence in the current strategic path.

Investment strategies

• Short-term: Accumulation on pullbacks near the ₹84–₹85 support zone could yield quick returns if a breakout signals the next upside leg. Momentum traders may target the ₹90–₹95 resistance band as a short-term profit window.
• Medium-term: Investors anticipating further project commissioning and positive policy news may build positions at current levels, with an eye on the next few earnings releases as critical price catalysts.
• Long-term: NHPC’s compelling combination of government support, visible earnings growth, and extended renewable pipeline justify core positioning in any Indian energy or infrastructure portfolio, especially below the consensus target of ₹110.

Ideal positioning may involve scaling into the stock on technical weakness or in anticipation of the next announced project milestone or regulatory development, minimising opportunity cost while capturing the stock’s natural volatility to the upside.

Is it the right time to buy NHPC?

NHPC’s strong financial performance, sector leadership, robust government support, and expanding project pipeline collectively point to a stock entering another compelling phase of potential appreciation. With technical indicators at a base, fundamental drivers accelerating, and several upward catalysts on the immediate horizon, NHPC seems to represent an excellent opportunity for investors seeking secure, long-term exposure to India’s fast-growing renewable energy sector.

In sum, while all investments require diligent risk management, NHPC’s profile today justifies serious renewed attention as a core holding for both medium- and long-term strategies in the Indian market. As India’s transition to clean energy accelerates and NHPC’s projects mature, investors positioning now may well participate in a new era of sector leadership and capital gains.

NHPC stands at the intersection of value, growth, and sustainability—a rare alignment that merits clear consideration as a timely, high-potential addition to forward-looking portfolios.

How to buy NHPC stock in India

Buying NHPC stock online is now a quick and secure process for Indian investors, thanks to top regulated brokers. You can choose between two main ways to invest: spot buying, in which you own actual NHPC shares, or trading Contracts for Difference (CFDs), which track NHPC’s price but offer leverage and flexibility. Both options are accessible and suitable even for first-time investors. To help you choose the right platform and method, we provide a detailed broker comparison further down this page.

Spot buying

A cash (spot) purchase of NHPC stock means buying and owning real shares on the NSE or BSE. You become a direct shareholder, can receive dividends, and keep your shares as long as you wish. Indian brokers usually charge a fixed commission per transaction, often around ₹20–₹50 per order, depending on volume.

NHPC Share Gain Scenario

Suppose the NHPC share price is ₹85.04, you could buy about 11 shares with a ₹1,000 investment (after a typical ₹40 brokerage fee).

Gain scenario: If the share price rises by 10%, your shares are now worth ₹1,100. Result: +₹100 gross gain, or +10% on your investment.

Trading via CFD

CFDs (Contracts for Difference) are financial instruments that let you trade NHPC’s price movements without owning actual shares. You can use leverage—often up to 5x—for increased market exposure, but this also increases risk. Typical fees with CFDs include a spread (the difference between bid and ask price) and overnight financing charges if you hold positions beyond one day.

Example of a CFD Gain Scenario

You open a CFD position on NHPC shares with 5x leverage and a ₹1,000 stake.
This means your exposure is ₹5,000.
✔️ Gain scenario:
If NHPC rises by 8%, your position gains 8% × 5 = 40%.
Result: +₹400 gain on your ₹1,000 outlay (excluding fees).

Final advice

Before investing, always compare broker fees, leverage conditions, account types, and available tools. The best method depends on your goals and risk appetite—spot buying is ideal for long-term holding and dividends, while CFDs offer flexibility and leverage for active traders. Check out our detailed broker comparison below to find the option that suits you best.

Our 7 tips for buying NHPC stock

The latest news about NHPC

NHPC reports a 52% year-on-year surge in net profit for Q4 FY25, exceeding analyst expectations. The company declared net profit of ₹919.63 crores on revenue of ₹2,672.11 crores, well above consensus estimates, and marked by significant margin improvements. This strong financial delivery reflects operational discipline during the quarter and reinforces NHPC’s position as a major player in India’s renewable energy transition.

NHPC appoints Rajendra Prasad Goyal as new Managing Director effective July 2025. The board’s selection of Goyal brings in a seasoned professional with a reputation for project execution and fiscal discipline. His experience is expected to bolster NHPC’s already robust execution pipeline, especially as the company advances into the next phase of renewable expansion and project delivery.

Commissioning of Parbati-II’s fourth unit adds 200 MW operational capacity to NHPC’s hydro portfolio. The April 2025 commercial start of this strategic unit directly expands NHPC’s income-generating assets and aligns with the Indian government’s target of broadening the share of green energy in the national grid. This milestone strengthens the company’s long-term cash flow profile.

NHPC secures ₹6,300 crores in fresh funding to accelerate new projects and strategic initiatives. In March 2025, NHPC received approval for substantial capital to finance future hydro and solar projects, ensuring the firm is well-capitalized to deliver on its presence in high-growth segments of India’s energy market. The injection further underlines investor and institutional confidence in the firm’s expansion strategy.

Memorandum of Understanding signed with Maharashtra government advances NHPC’s solar pipeline. The agreement, formalized in February 2025, demonstrates NHPC’s commitment to diversification and proactive alignment with India’s renewable energy policies. This partnership sets the stage for future solar installations, solidifying NHPC’s dual focus on hydro and solar capabilities for the coming decade.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.