Operating Margin

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Price: 78.44 INR -1.18% Market Closed

Market Cap: 787.9B INR

39.7%

Declining

by 2.8%

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

39.7%

Operating Income

₹44.5B

Revenue

₹112.1B

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

39.7%

Operating Income

₹44.5B

Revenue

₹112.1B

Peer Comparison

Country		Company	Market Cap	Operating Margin
IN		NHPC Ltd NSE:NHPC	779B INR	Loading...
CN		China Yangtze Power Co Ltd SSE:600900	657.2B CNY	Loading...
ID	B	Barito Renewables Energy PT Tbk IDX:BREN	1 277.7T IDR	Loading...
CN		Huaneng Lancang River Hydropower Inc SSE:600025	167.2B CNY	Loading...
CN		China Longyuan Power Group Corp Ltd HKEX:916	152.3B HKD	Loading...
CN		China Three Gorges Renewables Group Co Ltd SSE:600905	119.2B CNY	Loading...
IN		Adani Green Energy Ltd NSE:ADANIGREEN	1.5T INR	Loading...
ES	E	EDP Renovaveis SA ELI:EDPR	13.3B EUR	Loading...
RO		Societatea de Producere a Energiei Electrice in Hidrocentrale Hidroelectrica SA F:E28	11.6B EUR	Loading...
CN		Sichuan Chuantou Energy Co Ltd SSE:600674	68.8B CNY	Loading...
NZ		Meridian Energy Ltd NZX:MEL	14.8B NZD	Loading...

Market Distribution

Min	-153 833.3%
30th Percentile	2.7%
Median	7.3%
70th Percentile	13.2%
Max	9 977%

Other Profitability Ratios

NHPC Ltd
Glance View

Economic Moat

Narrow

Market Cap

787.9B INR

Industry

Utilities

NHPC Ltd., formerly known as the National Hydroelectric Power Corporation, stands as a pivotal entity in India's energy landscape, symbolizing the evolution of sustainable power generation in the subcontinent. Established in 1975, NHPC has unwaveringly devoted itself to harnessing the natural flow of water to produce electricity. This transition has not only helped in offsetting India's carbon footprint but also in meeting the burgeoning energy demands of a rapidly growing economy. Currently, NHPC operates an array of hydropower projects scattered across the country, each strategically located to maximize the energy derived from India's diverse and ample river systems. Their portfolio includes a mixture of profitable operational projects and ventures under development, showcasing a blend of ambitious foresight and operational acumen. The way NHPC generates revenue is intricately tied to its strategic prowess in optimizing hydropower. With over 7000 megawatts of commissioned hydroelectric power capacity, NHPC sells this renewable energy to various state utilities and commercial entities under long-term power purchase agreements. These arrangements not only ensure a steady cash inflow but also mitigate the risks associated with volatile energy markets. Furthermore, NHPC's involvement in designing, developing, and executing large infrastructure projects forms another revenue stream, as the company often forays into joint ventures and collaborations that leverage its expertise in civil, mechanical, and electrical engineering. Through a keen focus on both sustainability and profitability, NHPC Ltd. has cemented its role as a linchpin in India's quest for greener, self-sufficient energy alternatives.

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NHPC Intrinsic Value

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What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

The AI Assistant may sometimes provide inaccurate information.

Make your own investment decisions or consult a licensed financial advisor.

NHPC Ltd
BSE:533098

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Market Distribution

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NHPC Ltd
Glance View

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NHPC Ltd BSE:533098