⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
NTPCGREEN - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.2
| Stock Code | NTPCGREEN | Market Cap | 82,426 Cr. | Current Price | 97.8 ₹ | High / Low | 118 ₹ |
| Stock P/E | 160 | Book Value | 22.2 ₹ | Dividend Yield | 0.00 % | ROCE | 6.42 % |
| ROE | 3.95 % | Face Value | 10.0 ₹ | DMA 50 | 91.3 ₹ | DMA 200 | 97.6 ₹ |
| Chg in FII Hold | -0.18 % | Chg in DII Hold | 0.17 % | PAT Qtr | 60.3 Cr. | PAT Prev Qtr | 86.0 Cr. |
| RSI | 66.6 | MACD | 1.85 | Volume | 1,32,18,529 | Avg Vol 1Wk | 8,81,49,314 |
| Low price | 84.0 ₹ | High price | 118 ₹ | Debt to equity | 0.42 | 52w Index | 41.0 % |
| Qtr Profit Var | -32.6 % | EPS | 0.61 ₹ | Industry PE | 30.0 |
📊 Financials
- Revenue & Profitability: PAT declined from ₹86 Cr. to ₹60.3 Cr. (-32.6%), showing earnings pressure. EPS at ₹0.61 is very low.
- Margins & Returns: ROCE (6.42%) and ROE (3.95%) are weak, reflecting poor efficiency and profitability.
- Debt: Debt-to-equity ratio of 0.42 indicates moderate leverage.
- Cash Flow: Weak due to low profitability, though debt remains manageable.
💹 Valuation
- P/E Ratio: 160 vs Industry PE of 30.0 → Extremely overvalued compared to peers.
- P/B Ratio: ~4.4 (Price ₹97.8 / Book Value ₹22.2) → Expensive on book value basis.
- PEG Ratio: Not meaningful due to weak earnings growth.
- Intrinsic Value: Current price trades far above fair value, limiting upside.
🏢 Business Model & Competitive Advantage
- NTPC Green Energy operates in renewable power generation, benefiting from government initiatives and rising demand for clean energy.
- Competitive advantage lies in parent NTPC’s backing, scale, and regulatory support.
- No dividend yield, reflecting reinvestment focus rather than shareholder payouts.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive only near ₹85–90 range (close to 52W low of ₹84 and below DMA levels).
- Long-Term Holding: Suitable for investors seeking exposure to renewable energy growth, but accumulation should be cautious due to stretched valuations and weak profitability.
✅ Positive
- Strong backing from NTPC ensures operational stability.
- Renewable energy sector offers long-term growth potential.
- DII holdings increased (+0.17%), showing modest domestic institutional support.
⚠️ Limitation
- Extremely high P/E ratio (160) compared to industry average.
- Weak ROCE (6.42%) and ROE (3.95%).
- No dividend yield reduces attractiveness for income investors.
📉 Company Negative News
- PAT dropped significantly compared to previous quarter (-32.6%).
- FII holdings reduced (-0.18%), showing cautious foreign sentiment.
- High valuation multiples limit investor confidence.
📈 Company Positive News
- DII holdings increased (+0.17%), reflecting some domestic institutional support.
- Stock trading above DMA 50 (₹91.3) shows technical support.
- MACD at +1.85 indicates mild bullish momentum.
🏭 Industry
- Renewable energy industry benefits from government incentives and global clean energy demand.
- Industry PE at 30.0 suggests peers trade at more reasonable valuations, highlighting NTPC Green’s premium pricing.
🔎 Conclusion
- NTPC Green Energy offers long-term potential in renewables with strong parent backing.
- However, weak profitability and extremely high valuations make current levels unattractive.
- Best strategy: Accumulate cautiously near ₹85–90 range for long-term holding, while avoiding aggressive buying at current highs.