Emkay Global Financial Services has upgraded NHPC to 'Buy' with target price of Rs 25.

Commenting on the result performance, Emkay said, "PAT of Rs 3 billion was below our expectation of Rs 3.8 billion. During the quarter (as in previous three quarters) the company charged borrowing and admin expense related to Subansiri and TLDP-IV projects to P&L. During the quarter the construction work at TLDP-VI has resumed.

Overall commissioning is expected to remain muted over the next 3 years resulting in low earnings growth

However, valuations at 0.6x book is attractive and we upgrade our rating to Buy with a PT of Rs 25/sh (based on 1.0x FY15E book). We expect overall RoE to remain depressed as ~20% of the book is invested projects that are stuck and have poor visibility; OFS to remain an overhang.''

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