Buy NHPC- Target 33::Anand Rathi

Please Share:: India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��

NHPC                                                                            CMP 24.65                                                                         Target 33

Investment Rationale

~  Established track record with good operating efficiency

~ On expansion spree

~ Cash rich company and low debt on books

~ Capex plan

~ Industry Advantage

~ Hydropower firms get nod to sell 40% of power on merchant basis along with CDM (Clean Development Benefits) benefits

Valuations

Looking at the vast experience, various projects in the pipeline we see stocks trading at 13x and 11x FY12 and FY13 earnings respectively. We see a price target of 33 for next 15-18 months.