NHPC shares tumble in ongoing downturn this October

The ongoing decline in NHPC's share price has drawn attention due to significant recent events in Sikkim, India. Following a devastating landslide on August 20, 2024, which led to substantial damage at the 510 megawatt Teesta-V Power Station, NHPC reported an estimated loss of approximately ₹327.67 crore. This hydropower facility, critical to harnessing the Teesta River's potential, has faced operational disruptions exacerbated by flash floods earlier in October 2023. The Teesta-V Power Station, commissioned in 2008, is integral to India's renewable energy landscape. Its non-operational status poses a challenge to NHPC, particularly given the recent decline in its share price by around 11% over the past five sessions. As the restoration of the station takes precedence, investors have grown increasingly wary amid the company's substantial losses. NHPC has been actively working on submitting damage reports to its insurance company while managing the aftermath of these natural disasters. Additionally, a regulatory filing has further detailed the impact of these events on the company's operational capacity and future outlook. In light of these developments, many investors are reassessing their positions in NHPC. The continuous decline in its share price reflects a broader sentiment of caution within the market, as stakeholders await more definitive recovery plans and insights from the company regarding mitigating further losses.