power
NHPC
NHPC · Nifty 50
₹74.41
Price 2026-06-17
At a Glance
Fundamental
55/100
ADEQUATE
Trust
95/100
Verification
Coverage
44/100
LIMITED
Quick Take
NHPC scores 55/100 on fundamentals (adequate). NHPC: BROAD EXPANSION regime.
Fundamental Score: 55/100 · ADEQUATE · 1 signals detected
DuPont Analysis
ROE 8.7% broken into three drivers. Each shows how efficiently the company generates returns.
ROE of 8.68% is modest margin-driven and stable. Net margin of 34.0% × asset turnover of 0.09x × leverage of 2.9x.
What This Means
Net margin of 34.0% means the company keeps ₹34.0 as profit for every ₹100 of revenue. This is a healthy margin. Asset turnover of 0.09x means the company generates ₹0.09 of revenue for every ₹1 of assets. This is a capital-heavy business. Leverage of 2.9x means the company uses moderate debt. Returns are primarily driven by operations, not borrowing.
Margin Structure
Gross
94.2%
Operating
31.8%
Net
34.0%
Gross margin 94.2% → operating margin 31.8% → net margin 34.0%. Margins are IMPROVING. Strong pricing power with stable gross margins suggests the improvement is from operating leverage — sustainable.
Financial Health
Earnings Quality
WEAKCash flow only covers 0.9x of net income — earnings quality is WEAK. Profit may not be converting to cash. Check receivables and inventory.
Debt Sustainability
STRETCHEDInterest covered only 1.0x — stretched. Rising rates could pressure profitability. Debt/EBITDA at 10.0x is high — monitor leverage.
Free Cash Flow
MODERATEFCF margin negative at -78.1% — spending more than earning. Check capex cycle.
Peer Comparison
NHPC is compared against 8 peers in the power sector.
Key Watchpoints
Breaks above ₹78 (+5%)
Trend reversal confirmation
Breaks below ₹71 (-5%)
Further downside risk
Power sector entering leadership
Sector rotation signal
Detected Patterns
Risk Flags
Liquidity squeeze. Company may struggle to meet short-term obligations without refinancing.
Elevated risk score. Review audit, board, and shareholder rights metrics.
Working capital is consuming significant cash. Operational efficiency declining.
Governance structure concerns. Independent director representation may be weak.
Strong insider alignment. Promoters have significant skin in the game.
🔴 2 CRITICAL flags — significant concerns. Investigate before investing.
Data Quality
News Correlation
50 articles scanned for fundamental themes