NTPCGREEN - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.4
| Stock Code | NTPCGREEN | Market Cap | 87,946 Cr. | Current Price | 104 ₹ | High / Low | 120 ₹ |
| Stock P/E | 170 | Book Value | 22.2 ₹ | Dividend Yield | 0.00 % | ROCE | 6.42 % |
| ROE | 3.95 % | Face Value | 10.0 ₹ | DMA 50 | 104 ₹ | DMA 200 | 100 ₹ |
| Chg in FII Hold | 0.00 % | Chg in DII Hold | 0.27 % | PAT Qtr | 60.3 Cr. | PAT Prev Qtr | 86.0 Cr. |
| RSI | 44.5 | MACD | 0.30 | Volume | 67,86,006 | Avg Vol 1Wk | 44,93,258 |
| Low price | 84.0 ₹ | High price | 120 ₹ | Debt to equity | 0.42 | 52w Index | 56.7 % |
| Qtr Profit Var | -32.6 % | EPS | 0.61 ₹ | Industry PE | 28.7 |
📊 Financials: The company shows weak profitability with ROE at 3.95% and ROCE at 6.42%, reflecting limited efficiency in capital usage. Debt-to-equity is moderate at 0.42, indicating manageable leverage. Quarterly PAT declined from ₹86.0 Cr. to ₹60.3 Cr., a -32.6% variation, highlighting earnings pressure. EPS of ₹0.61 is very low relative to market capitalization, suggesting weak cash flow strength.
💹 Valuation: Current P/E of 170 is extremely high compared to the industry average of 28.7, indicating severe overvaluation. Book value of ₹22.2 against a market price of ₹104 implies a stretched P/B ratio. PEG ratio is unavailable, reflecting lack of growth visibility. Intrinsic value appears lower than current levels, making the stock risky at present valuations.
🏭 Business Model: The company operates in renewable energy under NTPC, focusing on green power generation. Competitive advantage lies in government backing, sectoral demand for clean energy, and alignment with sustainability goals. However, profitability remains weak, limiting overall health.
📈 Entry Zone: A favorable entry would be closer to ₹85–90, near the recent low of ₹84. Current price of ₹104 is significantly above fair value, so accumulation should be avoided until earnings improve.
⏳ Long-Term Holding: While the company benefits from renewable energy demand and government support, weak fundamentals and stretched valuations make long-term holding risky. Investors should wait for profitability improvement before considering accumulation.
Positive
- ✅ Government backing and focus on renewable energy
- ✅ Moderate debt-to-equity ratio (0.42)
- ✅ Increase in DII holding (+0.27%) shows domestic institutional support
Limitation
- ⚠️ Very high P/E (170) compared to industry average
- ⚠️ Weak ROE (3.95%) and ROCE (6.42%)
- ⚠️ EPS of ₹0.61 highlights poor profitability
Company Negative News
- 📉 Quarterly PAT declined from ₹86.0 Cr. to ₹60.3 Cr. (-32.6%)
Company Positive News
- 📈 Increase in DII holding (+0.27%) reflects domestic institutional confidence
- 📈 Strong sectoral positioning in renewable energy
Industry
- ⚡ Renewable energy sector benefits from global sustainability demand
- 📊 Industry P/E at 28.7 suggests peers are valued lower
- 🌍 Growth opportunities in solar, wind, and green energy projects
Conclusion
Overall, the company is strategically positioned in renewable energy with government support, but weak profitability and extreme valuations limit attractiveness. Best strategy is to avoid aggressive buying and wait for entry near ₹85–90 once earnings show improvement, making cautious long-term holding more viable.
Would you like me to extend this with a peer comparison against other renewable energy companies, or a technical analysis view to highlight support/resistance and momentum indicators?