NHPC LTD Valuation

NHPC · Power · Current price ₹79.2

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DocStoX fair value
₹64
low confidence
Current price
₹79
Upside
-19.3%
P/E ratio
21.1x
P/B ratio
2.0x
Verdict
Fairly Valued
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Is NHPC LTD undervalued?

DocStoX estimates the fair value of NHPC LTD at ₹64 per share, versus the current market price of ₹79. That puts the stock about -19.3% above our fair-value estimate, which we read as "Fairly Valued". Our confidence in this estimate is low.

How this fair value is calculated

This estimate blends 3 independent methods: Residual income (₹38), Relative P/E (₹120), Graham floor (₹59). We weight each by its reliability and skip any method whose inputs look untrustworthy — "no DCF beats a wrong DCF". This is the same deterministic engine that powers DocStoX stock pages; there is no guesswork or AI-generated number here.

Bear, base and bull scenarios

Our scenarios span ₹38 (bear) to ₹64 (base) to ₹120 (bull). A margin of safety means buying meaningfully below the base case — the wider the gap, the more room for error in the assumptions.

Valuation multiples

NHPC LTD trades at a P/E of 21.1x and a P/B of 2.0x, with a dividend yield of 1.8%. Multiples are most useful compared against the company's own history and its sector peers — see the peer comparison for context.

Understand the ratios

More on NHPC LTD

DocStoX estimates are generated by a deterministic valuation engine from reported financials — for informational purposes only, not investment advice. Consult a SEBI-registered advisor before investing.