Stocks To Buy: CLSA says this government stock could rise up to 43%, currently trading at just Rs 82:According to the brokerage, the company's installed capacity is expected to grow by 64% year-on-year, while EPS is expected to grow by around 90% between FY25 and FY27.

News Topical, Digital Desk : Stocks To Buy: Brokerage firm CLSA has maintained a 'High Conviction Outperform' rating on state-owned power company NHPC Ltd. The brokerage firm has set a target price of ₹117 for the stock. This target implies a potential upside of approximately 43% from Thursday's closing price. In a note issued on Friday, January 9, CLSA said that 2026 could prove to be a transformational year for NHPC.

According to the brokerage, the company's installed capacity is expected to grow by 64% year-over-year, while EPS growth is projected to be around 90% between FY25 and FY27. CLSA believes this growth will further strengthen NHPC's long-term, decade-long expansion story. CLSA has identified three key catalysts for NHPC stock's rally:

Tariff finalization for the Parbati II project: This project represents approximately 25% of NHPC's regulated equity base. Tariff finalization could have a positive impact on revenue and cash flow.
Full commissioning of Subansiri Lower Hydro Electric Project: This is the second largest project of NHPC, which is expected to be fully commissioned by the fourth quarter of 2026.
Award of new projects: Four hydropower projects and one pumped storage project are expected to be awarded in 2026, which could improve earnings and growth visibility by FY35.

What's the opinion on the street?

Currently NHPC is covered by 8 analysts.
'Buy' rating of 4
'Hold' rating of 1
'Sell' rating of 3

CLSA has the highest target on the Street, while ICICI Securities has the lowest target of ₹72 on the stock.

Stock Status

NHPC shares fell 1.98% to close at ₹82 in Thursday's trade. The stock is trading around 11% below its 52-week high of ₹92.34.