NHPC now stands at a trailing twelve-month price-to-earnings (PE) ratio of 31.95, higher than the industry average of 25.01. The premium indicates firm investor faith in NHPC’s prospects and business fundamentals. Although it can be problematic from a valuation point of view for conservative investors.
The price-to-book (P/B) ratio of 2.17 of the stock also points towards high valuation, as the book value per share is ₹39.97. More than double the value per share is being paid by investors, which points towards positive sentiment but needs to be approached with caution by value buyers.
Trailing twelve-month earnings per share (EPS) stands at ₹2.71, a decrease of 24.89% year-on-year. The reduction in earnings has probably restricted any significant price upsurge in the recent past.
