Indian stock markets have been persistently making and breaking new record highs day after day in 2017 with key equity indices Sensex and Nifty rising about 30% in the last 12-month period. This year had emerged as one of the best for Dalal Street bulls with blue-chip stocks such as HDFC Bank, Maruti Suzuki, Reliance Industries, Bharti Airtel, Yes Bank, and IndusInd Bank returning up to 90%. Today only, the benchmark Sensex index made a peak of 34,123.14 and the wider 50-share indicator Nifty topped 10,548.2. Interestingly, Sensex had managed to add nearly 8,000 points to cross the mark of 34,000 from a level of 26,200 while Nifty had appreciated 2,500 points to breach 10,500 from a level of 8,030 a year ago, respectively.
In 2017, there were many stocks which have beaten the stellar growth of benchmark indices even and a few stocks which had jumped 20% in a very short time period. We bring to you one PSU (public sector undertaking) stock under Rs 50 to buy which has jumped nearly 20% in last three months and you may gain 25% in 2018. Shares of the state-run hydropower generation company NHPC have risen nearly 20% in a 3-month period. The research and brokerage firm SMC Global Securities has given a target price of Rs 38 from a recommendation price of Rs 30.35 which implies an upside of 25%. Shares of NHPC of face value Rs 10 are included in S&P BSE 200 index and have an ISIN (International Security Identification Number): INE848E01016 and a scrip code: 533098. NHPC Ltd commands a market capitalisation of about Rs 32,700 crore on BSE.
NHPC is India’s premier hydropower company, with 15% share of installed hydroelectric capacity in India. The government of India holds 74.5% stake in NHPC (as per the shareholding pattern as on 30 September 2017). “The company has taken some very effective steps for its capacity addition to meet the annual demand for power and growth. It has adopted new technologies in the areas of electrical and civil engineering for improvement in planning and investigation, which will reduce delays in construction and problems of siltation.Thus, it is expected that the stock will see a price target of Rs 38 in 8 to 10 months time frame on a current P/E of 13.12x and FY19 (E) earnings of Rs 2.88,” SMC Global Securities said in a report.