Is NHPC a stock to invested for 2 years?
Printed From: The Equity Desk
Category: Investment Ideas - Creating winning portfolios!
Forum Name: Stock Synopsis
Forum Discription: A bried discussion of companies on very specific matters. Normally this is the prelude for further research as always members would be discussing quality companies with good management only
URL: http://www.theequitydesk.com/forum/forum_posts.asp?TID=2564
Printed Date: 21/Apr/2025 at 4:28pm
Topic: Is NHPC a stock to invested for 2 years?
Posted By: Roughrider
Subject: Is NHPC a stock to invested for 2 years?
Date Posted: 10/Dec/2009 at 5:33pm
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Dear friends,
I would like to get your opinion on NHPC for 2 years horizon.My entry is at 35/-share.Will it be winner in the long run?
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Replies:
Posted By: deepinsight
Date Posted: 10/Dec/2009 at 5:41pm
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Why dont you explain the investment thesis and explain your expectation - others can jump in and discuss.
Price is normally a function of the fundamentals & valuations. ------------- "Investing is simple, but not easy." - Warren Buffet |
Posted By: hit2710
Date Posted: 10/Dec/2009 at 5:51pm
There are two aspects to answer to your query: 1. Technically, the stock seems to have established a firm support in the 30-32 range and as and when some good news comes about there is likely to be a good spurt in prices because till now all the weak hands have moved out of the stock during the few sharp corrections experienced after the listing of the NHPC scrip. 2. Fundamentally, it remains to be seen what earnings it shows. But a bigger factor could be the hidden holding of NHPC in some other govt enterprises, and if it has some holding, it adds more value to an already good stock. I think if your horizon is two year, it will definitely be better than a bank FD. ------------- Stockmarket is a weird place. For every person who buys a stock there is a person who sells it and both think they are very smart. |
Posted By: Roughrider
Date Posted: 10/Dec/2009 at 6:01pm
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Thank you sir for your giving your view on NHPC.I had lost lot in the stock market on believing the tips and brokerage firms.Last one year I am doing on line and 50% of my loss, I could recover.I am hopeful i will sooner or later in the green.BUT NO MORE LISTENING TO TIPS!IT OFTEN DIPS!
Thank you friend. ------------- Roough&Tough |
Posted By: Hitesh Shah
Date Posted: 10/Dec/2009 at 6:36pm
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I don't know why, especially for NHPC, a stock's potential returns are compared with those of FDs.
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Posted By: hit2710
Date Posted: 10/Dec/2009 at 7:02pm
For me also borrowed ideas do not seem to work. It has been my observation that when brokerages etc come out with their recommendations, the stock is in the last leg of upmove and then if you are not nimble footed, you are stuck with the stock. Whereas ideas found by ourselves are done at a much earlier stage of the bull run in the stock and hence give much better returns. ------------- Stockmarket is a weird place. For every person who buys a stock there is a person who sells it and both think they are very smart. |
Posted By: subu76
Date Posted: 10/Dec/2009 at 7:17pm
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I guess another point is it's hard to hold such stocks with conviction during rough times which are bound to crop up. |
Posted By: subu76
Date Posted: 10/Dec/2009 at 7:20pm
Hi Roughrider,
I can identify with your scenario very well.
Offering some unsolicited advice....
One idea which has worked for me (atleast that's what I think right now) is:
1. Assign a number to the company (market cap, P/E, cash flow multiple) what ever by studying about the company.
2. Then look into the company's real market data.....
3. never look at the data first as that will influence you.
4. If the company sells at a discount to your calculation then buy it if you feel like. If not...note down the number for use later.
Also, write down your assumptions somewhere.
It looks painful but after some time you'll really enjoy the exercise.
This sort of analysis will really help you buy companies when there prices go down 50% from your purchase price...at the least it will stop you from doing panic selling.
Do remember that in any given year the price of a stock falls 30% from it's highs and rises 50% from it's lows.. (atleast a lot of stocks do this)
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Posted By: hit2710
Date Posted: 10/Dec/2009 at 7:27pm
I would like to go through your list and assumptions.  ------------- Stockmarket is a weird place. For every person who buys a stock there is a person who sells it and both think they are very smart. |
Posted By: samirarora
Date Posted: 10/Dec/2009 at 7:50pm
yes.. sure.. i would buy a small quantity, say 500-1000 shares, and forget about it.
My personal opinion.
Best wishes,
Samir. ------------- |
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Posted By: subu76
Date Posted: 10/Dec/2009 at 8:51pm
For humour value please turn to cartoon network.
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Posted By: HallaBol
Date Posted: 10/Dec/2009 at 9:44pm
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Why are we comparing NHPC's returns that with FDs, we should rather consider if it can outperform the market.
In my view, one should not expect erotic returns from NHPC. There are many other stocks (like FMCG, pharma, HDFCs) that can give double the return which NHPC can give. ------------- The future is never clear, you pay a very high price in the stock market for a cherry consensus. Uncertainty actually is the friend of the buyer of long-term values. - Warren Buffet |
Posted By: nannu_68
Date Posted: 10/Dec/2009 at 9:52pm
Erotic returns!!  Thats a good one!! i am already turned on
------------- nannu |
Posted By: Hitesh Shah
Date Posted: 10/Dec/2009 at 9:55pm
This is a hydro project so you can also have a cold shower ... 
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Posted By: TCSer
Date Posted: 10/Dec/2009 at 10:05pm
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See approximately 5200 MW in hydro is operational which itself is a big achievement.Its further doubling it in next 3 years.Hydro is a clean fuel at zero cost and O & M cost is virtually minimal whereas coal based power is a dirty source sure to be penalised by world authorities. After 3-5 years in my opinion the net profit of NHPC & NTPC will be the same. With CER & VER benefits NHPC shud further benefit. Just treat as a FD n enjoy |
Posted By: hit2710
Date Posted: 10/Dec/2009 at 10:12pm
Seriously speaking, your idea is very good because every time a correction comes around one has no idea what to buy and speaking of me, I end up buying something I have never thought about. So it is better to do some homework beforehand and know what you want to buy. One stock I always want to buy(but have not managed to buy so far) would be Jyothy laboratories. It would be good at around 120-130 levels. ------------- Stockmarket is a weird place. For every person who buys a stock there is a person who sells it and both think they are very smart. |
Posted By: subu76
Date Posted: 10/Dec/2009 at 8:34am
Yeah...there was some insider buying in this one a couple of months back...i think somewhere near this range
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Posted By: TCSer
Date Posted: 03/Oct/2010 at 12:33pm
| Not much activity on this board recently |
Posted By: Kabootar
Date Posted: 03/Oct/2010 at 1:05am
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Reposting this:
Once a hydro project goes on stream the sky is the limit. The calculation is: Assuming a price of Rs 3 per unit, Every 100 MW will generate Rs 72 lakh worth of electricity PER DAY as long as there is water to churn the turbines. If the flow is huge, plants will be run above 100% rated output. The only costs are maintenance, salaries and loan repayments. ------------- Verbal diarrhoea! A most deadly disease. |