NTPC Green Energy Shares Drop Below ₹100 After 8% Fall: Growth Potential and Future Outlook
Business and Industry Overview:
NTPC Green Energy Limited (NGEL) is a company that makes clean energy from the sun and wind. It is the biggest government-backed green energy company in India (except for hydropower). Right now, it has 26,071 MW of energy projects, and most of them are in Rajasthan. It sells power through long-term contracts, which helps it earn steady money. It also works with Indian Oil and Damodar Valley Corporation on green projects.
In November 2024, NGEL got ₹10,000 crore from an IPO and used most of it to pay off debt. The company still has some loans but plans to reduce them. It is also working on new things like green hydrogen and battery storage. There are some problems, like delays in getting land for projects and depending too much on a few big buyers for most of its earnings.
Even with these problems, NGEL is growing fast. Over the last five years, its profits have gone up a lot. Experts believe the company has a bright future as India moves toward clean energy. NGEL wants to reach 60 GW of green energy by 2032 and become a leader in India’s clean energy journey.
India is using more clean energy because it has a big population and a growing economy. The government is helping by giving money and making special plans. Green energy helps reduce pollution and saves resources. India is building more solar, wind, and water energy projects. Experts say this market will grow fast and be worth $50 billion by 2027. India also wants to make a special clean fuel called green hydrogen. This will create jobs and reduce the use of coal and oil. The country plans to make a lot more clean energy by 2030. Foreign companies can invest in these projects, and India has already approved many solar and wind energy sites. The country is also working on better batteries and electric cars. By 2030, India hopes to sell 10 million electric cars every year. With all these efforts, India is becoming a leader in clean energy. NTPC Green Energy makes clean energy using the sun and wind. It is part of NTPC, India’s biggest power company, which helps it grow. The company is working to make more green energy. Right now, Adani Green Energy is bigger, but NTPC Green Energy is still important. It has a strong base and good support. Experts believe it will play a big role in India’s clean energy future.
Latest Stock News:
NTPC Green Energy’s stock went up by 2.2% to ₹108.40 after signing a deal with Bharat Light and Power. This deal will help in making green hydrogen and capturing carbon. It will support India’s goal of using more clean energy by 2030 and reducing pollution by 2070. NTPC Green Energy is a part of NTPC Limited and is growing its clean energy business. The company will sell green hydrogen and captured carbon while building more solar and wind projects. NTPC Green Energy and ONGC Green Limited also bought Ayana Renewable Power for ₹195 billion. Ayana has many solar and wind projects that produce clean energy. These projects are in good locations and have strong buyers like NTPC and Indian Railways. Experts believe these steps will help NTPC Green Energy grow fast in the clean energy market. With support from the government and more investments, the company is expected to do well in the future.
Potentials:
NTPC Green Energy wants to grow bigger and make more clean energy. It plans to reach 60 GW of green energy by 2032. The company builds big solar and wind farms in places like Gujarat, Rajasthan, and Maharashtra. It is also working on green hydrogen, which can help reduce pollution. NTPC Green Energy is using batteries to store energy and make power supply steady. It is teaming up with governments and other companies to get land and start new projects. Since NTPC is a big and strong company, it has enough money to grow. But there are some problems, like changing energy prices, getting land on time, and competition from other companies. Even with these challenges, NTPC Green Energy has a good chance to grow and make more clean energy for the future.
Analyst Insights:
Key financial metrics:
Market Cap: 82,578 crore
Price-to-Earnings (P/E) Ratio: 239.56
Dividend Yield: 0%
Return on Capital (ROCE): 6.20 %
ROE: 6.20 %
Dividend Payout: 0%
PAT: ₹31,807
The company’s stock is very expensive because its P/E ratio is very high at 239.56. It is not making big profits, with ROE and ROCE at just 6.20%. The company does not pay dividends, so investors don’t get extra money. It has improved how fast it collects payments, but it may struggle to pay interest on debt. There are also worries that the company is adding interest costs to assets instead of counting them as expenses. Because of these problems, the stock does not seem like a good buy, and it may be better to sell or wait.