NHPCNSE:NHPC +1.54%75 3-Year ROIIC % is -2.68 as of Mar. 2026. GuruFocus rates NSE:NHPC with a GF Score™ of 75/100 and a GF Value™ of ₹106.24 (Modestly Undervalued). The stock has 7 warning signs investors should review. Among 393 Utilities - Independent Power Producers companies, NHPC ranks worse than 64.89% on this metric.
3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
NHPC's 3-Year ROIIC % for the quarter that ended in Mar. 2026 was -2.68%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for NHPC's 3-Year ROIIC % or its related term are showing as below:
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
NHPC 3-Year ROIIC % Related Terms
NHPC 3-Year ROIIC % Historical Data
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The historical data trend for NHPC's 3-Year ROIIC % 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 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % 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 3-Year ROIIC % vs Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, NHPC's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where NHPC's 3-Year ROIIC % falls into.
NHPC's 3-Year ROIIC % for the quarter that ended in Mar. 2026 is calculated as:
3-Year ROIIC %
=
3-Year Incremental Net Operating Profit After Taxes (NOPAT)**
/
3-Year Incremental Invested Capital**
=
( 32600.6 (Mar. 2026) - 42734.38848 (Mar. 2023) )
/
( 1190593.4 (Mar. 2026) - 811857.8 (Mar. 2023) )
=
-10133.78848
/
378735.6
=
-2.68%***
* 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.
** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
NHPC (NSE:NHPC) has a 3-Year ROIIC % of -2.68 as of Mar. 2026. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on NHPC and its competitors. According to the industry distribution chart, NHPC ranks #255 out of 393 companies in the Utilities - Independent Power Producers industry, placing it in the top 64.9%.
Is NHPC's 3-Year ROIIC % too high?
NHPC's current 3-Year ROIIC % is -2.68. Based on the distribution chart, NHPC ranks #255 out of 393 companies in the Utilities - Independent Power Producers industry, which is below the industry midpoint. Overall, NHPC has a GF Score™ of 75/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does NHPC's 3-Year ROIIC % compare to competitors?
According to the Utilities - Independent Power Producers industry distribution chart, NHPC ranks #255 out of 393 companies for 3-Year ROIIC %. This places NHPC in the lower half of its industry. The industry median 3-Year ROIIC % is 1.37. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year ROIIC % for an Utilities - Independent Power Producers company?
The median 3-Year ROIIC % among Utilities - Independent Power Producers companies is 1.37, based on 393 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 3-Year ROIIC % mean?
A high 3-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on NHPC and its competitors. For the Utilities - Independent Power Producers industry, the median 3-Year ROIIC % is 1.37 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. NHPC's current 3-Year ROIIC % is -2.68. 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 ₹106.24, compared to a current price of ₹79.82 — trading 24.9% below its estimated fair value. The current 3-Year ROIIC % is -2.68. NHPC's overall GF Score™ is 75/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year ROIIC % calculated?
3-Year ROIIC % is calculated from a company's financial statements. For NHPC (NSE:NHPC), the current 3-Year ROIIC % is -2.68 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 ₹79.82 is trading 24.9% below its estimated GF Value™ of ₹106.24.
GuruFocus considers NHPC to be Modestly Undervalued.
Key valuation signals for NSE:NHPC:
3-Year ROIIC %: -2.68
GF Value™: ₹106.24 vs. price of ₹79.82 (24.9% below fair value)
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.
75GF Score
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