NHPC‘s share price continued to slump on Monday after the company’s underwhelming results for the September quarter. Analysts at Antique Broking and Kotak Securities also remain cautious about the stock going ahead.

The NHPC Analyst: The research team at Antique Broking maintained the “hold” rating for the stock with a target price of ₹92.

Analysts at Kotak Securities maintained a “sell” rating on the stock with a target price of ₹70. The target indicates around 15% downside from the stock’s last closing price.

The NHPC Thesis: Antique Broking said that NHPC's quarterly performance was in line with expectations, with revenue rising 4% year on year to ₹3,100 crore and EBITDA up 2% to ₹1,800 crore, reflecting an EBITDA margin of 58.9%.

However, net profit fell 37% to ₹1,100 crore, driven by higher interest expenses and a tax rate increase to 38% from a tax refund scenario in the base period.

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Analysts at Kotak Securities, on the other hand, said that NHPC posted weak earnings due to reduced generation from the Teesta V plant shutdown and further commissioning delays.

Parbati II commissioning has been postponed by another quarter, and the Subansiri Lower project is still slated for completion by FY27. The earnings decline also reflects a base quarter benefit from tax credits, making year-on-year comparisons less favourable.

Analysts at Antique said that NHPC's generation for the first half of FY25 declined 11% to 15 billion units, largely due to a shutdown of the Teesta-V power station following severe flash floods in the Teesta Basin, which impacted generation.

Despite NHPC's stock declining by 30% over the last three months, Antique recommends waiting for further updates on the Parbatti-2 project before considering a buy. Analysts at Kotak Securities also said that despite a recent 17% drop in stock price, NHPC's valuation is still high.

Price Action: NHPC’s share price was down 1.29% to trade at ₹81.29 in early trade on Monday.

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.