Stocks To Buy: PSU stock has 43% upside on three key growth triggers, CLSA says

Brokerage firm CLSA has a 'High conviction outperform' rating on state-run NHPC Ltd. and has a price target of ₹117 per share for the stock.

This target implies a potential upside of about 43% from the stock's last closing price on Thursday.

CLSA, in a note dated Friday, January 9, said 2026 could be a transformative year for NHPC. The brokerage expects the company's installed capacity to expand by 64% year-on-year, while earnings per share are estimated to grow 90% over FY25 to FY27.

CLSA added that this growth would further strengthen NHPC's long-term, decade long expansion story.

CLSA highlighted three key catalysts that could drive the stock.

- The first is the finalisation of tariffs for the Parbati II project, which accounts for about 25% of NHPC's regulated equity base.

- The second catalyst is the full commissioning of the Subansiri Lower Hydro Electric Project, NHPC's second-largest project, which is expected by the fourth quarter of 2026.

- The third trigger is the likely award of four hydro power projects and one pumped storage project in 2026, which could improve earnings and growth visibility until FY35.

Currently, NHPC is tracked by eight analysts. Of these, four have a 'Buy' rating on the stock, one recommends 'Hold', while three have a 'Sell' call. CLSA's target is the highest on the Street, while ICICI Securities has the lowest target at ₹72.

Shares of NHPC ended Thursday's session 1.98% lower at ₹82. The stock is down 11% from its 52 week high of ₹92.34.