In Tuesday’s trading session, shares of one of the leading green energy PSU,under the Ministry of the Government, specialising in the development, operation, and management of renewable energy projects, were in focus following plans of developing a green hydrogen hub worth $ 21 billion in Andhra Pradesh to boost the country’s carbon-free fuel supply.
Price action
With a market capitalization of Rs. 1,04,697 crores on Tuesday, the shares of NTPC green energy Limited were trading at Rs. 124.7 up by 1 percent making a high of Rs. 125.49 per share compared to its previous closing price of Rs. 124.26 per share.
What Happened
NTPC Green Energy Limited, specializing in the development, operation, and management of renewable energy projects that includes thermal, hydro, and renewable power sources, plans to develop a green hydrogen hub at an estimated cost of Rs 1.8 trillion ($21 billion) as the country aims to increase its supply of carbon-free fuel to meet growing demands.
The project will be developed in Pudimadaka, located in the southern state of Andhra Pradesh. This will be the first such project under India’s National Green Hydrogen Mission, with Prime Minister Narendra Modi set to lay the foundation stone for the project on January 8.
The investment will involve the development of 20 gigawatts of renewable energy capacity to produce 1,500 tons of green hydrogen per day. Additionally, the site will produce 7,500 tons of derivatives daily, including green methanol, green urea, and sustainable aviation fuel, primarily targeting the export market.
About the company
NTPC Green Energy Limited (NGEL), a wholly owned subsidiary of NTPC Limited, focuses on harnessing renewable energy sources to power India’s transition towards a greener, more sustainable future. Established with the vision of contributing to the country’s clean energy goals, NGEL is actively involved in the development, operation, and maintenance of renewable energy projects, including solar, wind, and hybrid power systems.
The company aims to reduce carbon emissions and enhance energy security by increasing the share of green energy in India’s overall power mix. NGEL is aligned with NTPC’s commitment to achieving a carbon-neutral future and is dedicated to setting new benchmarks in the renewable energy sector through innovative solutions, large-scale projects, and strategic partnerships.
Shareholding Pattern
NTPC Green Energy Limited’s ownership is divided as follows: promoters hold 89.01 percent, Foreign Institutional Investors (FIIs) have 2.24 percent, Domestic Institutional Investors (DIIs) own 5.08 percent, and the public holds 3.68 percent. This diverse ownership reflects strong investor confidence in the company’s growth prospects.
Financials
The company’s revenue declined by 10.9 percent from Rs 1,021.14 crore to Rs 1,132.74 crore in H1FY24-25. Meanwhile, Net profit declined from Rs 208.16 crores to Rs 175.3 crore during the same period.
Key Financial ratios
NTPC Green Energy (National Thermal Power Corporation) Limited has an Return on Equity (RoE) of 3.82 percent and a Return on Capital Employed (RoCE) of 4.21 percent. Furthermore, the company’s debt-to-equity ratio is 2.2.
Written by Sridhar J
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