NHPCNSE:NHPC -0.07%80 Return-on-Tangible-Equity is 14.17% as of Mar. 2026, which is 48% above its 10-year median of 9.55. GuruFocus rates NSE:NHPC with a GF Score™ of 80/100 and a GF Value™ of ₹105.67 (Modestly Undervalued). The stock has 7 warning signs investors should review. Among 425 Utilities - Independent Power Producers companies, NHPC ranks better than 63.29% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. NHPC's annualized net income for the quarter that ended in Mar. 2026 was ₹58,406 Mil. NHPC's average shareholder tangible equity for the quarter that ended in Mar. 2026 was ₹412,237 Mil. Therefore, NHPC's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 14.17%.
The historical rank and industry rank for NHPC's Return-on-Tangible-Equity or its related term are showing as below:
NSE:NHPC'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 7.71 Med: 9.55 Max: 10.86
Current: 9.28
During the past 13 years, NHPC's highest Return-on-Tangible-Equity was 10.86%. The lowest was 7.71%. And the median was 9.55%.
NSE:NHPC's Return-on-Tangible-Equity is ranked better than 63.29% of 425
companies
in the Utilities - Independent Power Producers industry
Industry Median: 4.71
vs NSE:NHPC: 9.28
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
NHPC Return-on-Tangible-Equity Related Terms
NHPC Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for NHPC's Return-on-Tangible-Equity can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Utilities - Renewable subindustry, NHPC's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
NHPC Return-on-Tangible-Equity vs Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, NHPC's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where NHPC's Return-on-Tangible-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 14.17% mean?
NHPC (NSE:NHPC) has a Return-on-Tangible-Equity of 14.17% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on NHPC and its competitors. This is 48% above median its historical median of 9.55. Over the past decade, NHPC's Return-on-Tangible-Equity has ranged from 7.71 to 10.86. According to the industry distribution chart, NHPC ranks #156 out of 425 companies in the Utilities - Independent Power Producers industry, placing it in the top 36.7%.
Is NHPC's Return-on-Tangible-Equity too high?
NHPC's current Return-on-Tangible-Equity of 14.17% is 48% above median its 10-year median of 9.55. Over the past 10 years, this metric has ranged from a low of 7.71 to a high of 10.86. The Utilities - Independent Power Producers industry median Return-on-Tangible-Equity is 4.71. NHPC's value of 14.17% is 200.8% above this industry median. Based on the distribution chart, NHPC ranks #156 out of 425 companies in the Utilities - Independent Power Producers industry, which is above the industry midpoint. Overall, NHPC has a GF Score™ of 80/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does NHPC's Return-on-Tangible-Equity compare to competitors?
According to the Utilities - Independent Power Producers industry distribution chart, NHPC ranks #156 out of 425 companies for Return-on-Tangible-Equity. This puts NHPC in the upper half of its industry. The industry median Return-on-Tangible-Equity is 4.71. NHPC's value of 14.17% is 200.8% above this benchmark. Historically, NHPC's own Return-on-Tangible-Equity has ranged from 7.71 to 10.86 over the past decade. While the company's 10-year median is 9.55 vs. the industry median of 4.71, NHPC has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for an Utilities - Independent Power Producers company?
The median Return-on-Tangible-Equity among Utilities - Independent Power Producers companies is 4.71, based on 425 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. NHPC's current Return-on-Tangible-Equity of 14.17% is 200.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on NHPC and its competitors. For the Utilities - Independent Power Producers industry, the median Return-on-Tangible-Equity is 4.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. NHPC's current Return-on-Tangible-Equity is 14.17%, which is 48% above median its own 10-year median of 9.55. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is NHPC stock overvalued right now?
Based on GuruFocus' analysis, NHPC (NSE:NHPC) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹105.67, compared to a current price of ₹80.53 — trading 23.8% below its estimated fair value. The current Return-on-Tangible-Equity is 14.17%, which is 48% above median its 10-year median of 9.55 and 200.8% above the Utilities - Independent Power Producers industry median of 4.71. NHPC's overall GF Score™ is 80/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For NHPC (NSE:NHPC), the current Return-on-Tangible-Equity is 14.17% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is NHPC (NSE:NHPC) Overvalued in 2026?
Based on GuruFocus' analysis, NHPC stock appears to be undervalued.
The current stock price of ₹80.53 is trading 23.8% below its estimated GF Value™ of ₹105.67.
GuruFocus considers NHPC to be Modestly Undervalued.
Key valuation signals for NSE:NHPC:
Return-on-Tangible-Equity: 14.17% (48% above median its 10-year median of 9.55)
GF Value™: ₹105.67 vs. price of ₹80.53 (23.8% below fair value)
Industry Position: 200.8% above the Utilities - Independent Power Producers median (#156 of 425)
No single metric tells the full story. See the NSE:NHPC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
NHPC Ltd is an electric utility company, of which the Indian government owns the vast majority of shares. The company produces electricity through the operation of its portfolio of hydroelectric power plants located across India. Electricity generation (including income from embedded Finance/ Operating leases) is the principal business activity of the Company. NHPC generates a majority of its revenue from the sale of energy to state electricity boards, state energy departments, and their successor companies via long-term agreements. The company has made efforts to expand its electric production capacity with thermal, wind, and solar power generating facilities. NHPC operates its power development and secondary consulting businesses exclusively in India.
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