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Synopsis: NHPC Limited has received approval from its shareholders to increase its borrowing limit to Rs50,000 crore, as confirmed during the company's 48th Annual General Meeting. The move aligns with NHPC's capital expenditure plans, which are projected to require approximately Rs80,000 crore by FY 2032-33 for ongoing and new projects. Despite the positive developments, NHPC's stock has recently shown modest performance, ending flat at Rs95.05 on the BSE.
NHPC Limited, a leading hydropower producer in India, has recently made headlines after receiving shareholder approval to increase its borrowing limit to Rs50,000 crore. This decision was made during the company's 48th Annual General Meeting (AGM), held on August 28, 2024. The approval reflects NHPC's strategy to meet its substantial capital expenditure (CAPEX) needs, which are anticipated to reach Rs80,000 crore by the fiscal year 2032-33.
This move is essential for NHPC as it continues to expand and upgrade its hydropower projects. The company has a portfolio of power stations across India, including Salal, Dulhasti, Kishanganga, and others, and the increased borrowing limit will support both ongoing projects and future developments.
Despite this significant development, NHPC's stock performance has been relatively muted. On the day following the AGM, the stock closed at Rs95.05 on the Bombay Stock Exchange (BSE), with a market capitalization of approximately Rs95,478 crore. Over the past year, NHPC's stock has experienced a significant increase of 86%, with a notable 163% gain over the past two years. However, in recent trading sessions, the stock has shown a downward trend, with the price hovering around Rs95.00 and the Relative Strength Index (RSI) indicating a neutral position at 39.1.
NHPC's stock also remains below several key moving averages, including the 5-day, 10-day, and 200-day averages, signaling a cautious outlook from investors. Nevertheless, the company continues to hold a strong position in the market, with analysts maintaining a "Hold" rating on the stock, reflecting mixed sentiments about its future performance.
This strategic decision to raise the borrowing limit is part of NHPC's broader efforts to secure long-term growth and maintain its leadership in the renewable energy sector, particularly hydropower. The company's ongoing projects and future investments are expected to contribute significantly to India's energy security and sustainability goals.
Disclaimer: This article is for informational purposes only and should not be considered as financial advice. Investors should conduct their own research or consult with a financial advisor before making any investment decisions.
