Is NHPC the Best Stock in Its Sector? A Look at the Numbers

Is NHPC the best stock in its sector? The stock trades on the NSE at Rs 72.70 as of 16 October 2026, within its 52-week range of Rs 70.25 to Rs 87.81. The sections below cover the business, the key ratios, a peer comparison and a closer look at valuation.

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About NHPC

NHPC Ltd is a government owned hydropower company with headquarters in Faridabad. It builds and runs hydroelectric stations across the country and has been adding solar and wind capacity as part of a wider clean energy plan. At a market capitalisation of Rs 72,907 Cr, it is tracked as part of the Power sector on Univest.

Is NHPC the Best Stock in Its Sector?

NHPC makes its case as the best stock in its sector primarily on valuation relative to its Industry P/E, backed by its return on equity. NHPC's 17.08x P/E is below the 22.18x Industry P/E, though above NLC India at 10.62x and CESC at 11.29x, while its 9.09% ROE is lower than NLC India at 16.36% and CESC at 12.31%, and its debt to equity ratio of 1.26 is below NLC India at 1.30 and CESC at 1.73.

Metric	NHPC
CMP (NSE)	Rs 72.70
52-Week High / Low	Rs 87.81 / Rs 70.25
Market Cap	Rs 72,907 Cr
P/E (TTM) vs Industry P/E	17.08x vs 22.18x
P/B	1.76
ROE	9.09%
EPS (TTM)	Rs 4.25
Dividend Yield	2.22%
Debt to Equity	1.26

Compare NHPC Against Other Power Sector Stocks

How NHPC Compares Against Its Power Sector Peers

The table below sets NHPC against 2 other Power sector names, using the same live data source for every company. A peer average row is included for P/E, ROE and debt to equity, calculated across the 2 peer companies.

Company	Market Cap (Rs Cr)	P/E	ROE	Debt to Equity
NHPC	72,907	17.08	9.09%	1.26
NLC India	35,768	10.62	16.36%	1.30
CESC	18,412	11.29	12.31%	1.73
Peer average (2 companies)	-	10.95	14.34%	1.52

Measured against the peer averages, NHPC's P/E is 56 percent above the 10.95x average, and its ROE is 5.25 percentage points below the 14.34% average. An average of just two companies is a rough guide, so treat the gap as a pointer for further research and not as a verdict.

What Makes NHPC Worth Watching in Power

• Scale: At Rs 72,907 Cr, its market capitalisation is larger than NLC India (Rs 35,768 Cr) and CESC (Rs 18,412 Cr), which is a useful reminder that the peers differ in size as well as in valuation.
• Sector drivers: Commissioning of large hydro projects under construction, together with tariffs set by regulators and the pace of renewable additions, shapes earnings.
• Key risk: Its debt to equity ratio of 1.26 is above 1, its ROE is below 10%, and hydro projects can face delays and cost overruns that push out returns.

NHPC Valuation: Is It Justified?

At a P/B ratio of 1.76, the market pays about Rs 1.76 for every rupee of book value, and the EPS (TTM) of Rs 4.25 is the earnings base behind the P/E. The stock trades about 17 percent below its 52-week high and about 3 percent above its 52-week low. The dividend yield of 2.22% adds a meaningful income component on top of any price movement. As with any single stock, investors should weigh these figures against their own valuation discipline and risk appetite rather than the sector label alone.

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Download the Univest iOS App or Univest Android App to track NHPC and other Power sector stocks.

How to Track NHPC Before You Invest

Before deciding whether NHPC deserves its label as the best stock in its sector for your own portfolio, compare it directly against Power sector peers using the steps below.

1. Open the Univest Screener and search for NHPC to view live price, valuation ratios, and peer comparisons within the Power sector.
2. Compare its P/E, P/B, and ROE against other Power sector stocks before deciding if the current valuation fits your strategy.
3. Set a price alert around key support and resistance zones using the Univest app so you are notified of meaningful moves.
4. Open a broking account on Univest if you decide to add the stock, and size the position based on your own risk appetite and portfolio allocation.

Conclusion

NHPC gives investors a clear set of numbers to work with, from returns and valuation to leverage and peer standing. Whether it earns the label of best stock in Power depends on how much weight you give each of them and on how the business executes from here. Because the stock trades below its sector benchmark, the open question is whether earnings growth will close that gap or whether the discount is deserved. As with any individual stock decision, this analysis is educational and investors should do their own research or consult a SEBI-registered advisor before investing.

Is NHPC the best stock in its sector?

Ans. There is no single definitive answer, because the best stock in a sector depends on whether an investor is prioritising returns, valuation or balance sheet strength. NHPC has a 9.09% ROE and trades at 17.08x P/E against a 22.18x Industry P/E. Against the 2 peers compared in this article, its ROE is below the 14.34% peer average and its P/E is above the 10.95x peer average. Its debt to equity ratio of 1.26 is below the 1.52 peer average, which matters because borrowing can inflate returns and add risk when business conditions weaken. These figures are best read together rather than in isolation, and they work as a starting point for your own research and not as a verdict.

What is the current share price of NHPC?

Ans. NHPC was trading at Rs 72.70 on the NSE as of 16 October 2026, and its 52-week range runs from Rs 70.25 to Rs 87.81. That leaves the share price 17 percent short of the 52-week high and 3 percent clear of the 52-week low. Its market capitalisation is Rs 72,907 Cr and its EPS (TTM) is Rs 4.25, which is the earnings figure behind the 17.08x P/E. Share prices change through the trading day, so check the live quote on Univest before acting on any number here.

What sector does NHPC belong to?

Ans. NHPC is classified under the Power sector on Univest, and that group of listed companies is the reference point for the 22.18x Industry P/E used in this article. The 2 named peers compared here are NLC India and CESC, chosen as comparable listed names so that the P/E, ROE and debt figures come from the same live data source. Investors who want a wider view can compare more Power sector stocks on the Univest Screener, since no two companies in a sector have exactly the same business mix.

How does NHPC compare to its sector peers on P/E?

Ans. NHPC's P/E of 17.08x is above the 10.95x average of the 2 named peers, with NLC India at 10.62x and CESC at 11.29x. It also sits below the 22.18x Industry P/E, which is the benchmark for the wider Power sector. A P/E that is above a peer average can reflect a valuation discount or premium, but it can also reflect different growth or return expectations, so it should be read alongside ROE and debt. Its P/B ratio of 1.76 gives one more view of how the market values its book value.

What is NHPC's return on equity?

Ans. NHPC reported a return on equity of 9.09%, which is below the 14.34% average of its named peers, with NLC India at 16.36% and CESC at 12.31%. ROE shows how much profit a company generates on every rupee of shareholders' equity, so a higher figure generally points to more efficient use of capital. ROE is easier to trust when leverage is modest, and here the debt to equity ratio is 1.26 against a peer average of 1.52. It is worth checking whether the ROE has been stable over several years rather than relying on a single reading.

Should I invest in NHPC based on its sector position?

Ans. Sector position is only one input into an investment decision. NHPC has a 9.09% ROE and a 17.08x P/E, which make it worth researching further, and its dividend yield is 2.22%. You should also weigh its business outlook, earnings consistency, debt levels, your investment horizon and your own risk appetite before buying. Spreading money across several stocks and sectors reduces concentration risk, and this article is educational content, not investment advice. For personalised guidance, consult a SEBI-registered advisor.