NTPCGREEN - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 2.9
| Stock Code | NTPCGREEN | Market Cap | 92,563 Cr. | Current Price | 110 ₹ | High / Low | 120 ₹ |
| Stock P/E | 179 | Book Value | 22.2 ₹ | Dividend Yield | 0.00 % | ROCE | 6.42 % |
| ROE | 3.95 % | Face Value | 10.0 ₹ | DMA 50 | 101 ₹ | DMA 200 | 99.2 ₹ |
| Chg in FII Hold | 0.00 % | Chg in DII Hold | 0.27 % | PAT Qtr | 60.3 Cr. | PAT Prev Qtr | 86.0 Cr. |
| RSI | 56.6 | MACD | 4.74 | Volume | 90,40,006 | Avg Vol 1Wk | 1,72,05,172 |
| Low price | 84.0 ₹ | High price | 120 ₹ | Debt to equity | 0.42 | 52w Index | 71.9 % |
| Qtr Profit Var | -32.6 % | EPS | 0.61 ₹ | Industry PE | 31.0 |
📊 Financials: NTPCGREEN shows weak fundamentals with ROE at 3.95% and ROCE at 6.42%. EPS is very low at ₹0.61, and quarterly PAT declined sharply (₹60.3 Cr vs ₹86.0 Cr, -32.6%). Debt-to-equity ratio of 0.42 is moderate, but profitability remains poor. Dividend yield is 0.00%, offering no income support.
💹 Valuation: The stock trades at a P/E of 179, far above the industry average of 31.0, indicating extreme overvaluation. Book value of ₹22.2 provides limited intrinsic backing. PEG ratio is unavailable, further highlighting weak growth visibility. Current valuation is unsustainable given earnings weakness.
🏭 Business Model: NTPCGREEN operates in renewable energy, primarily solar and wind projects. Its competitive advantage lies in government backing and sectoral tailwinds from clean energy initiatives. However, weak profitability, high valuation, and earnings decline undermine its overall health.
📈 Entry Zone: Attractive entry would be near ₹95–₹100, aligning with support levels and fairer valuation. Current price (₹110) is above both 50 DMA (₹101) and 200 DMA (₹99.2), suggesting short-term momentum but limited upside. Long-term investors should wait for earnings improvement before accumulation.
Positive
- Government backing in renewable energy sector.
- Moderate debt-to-equity ratio (0.42).
- DII holdings increased (+0.27%), showing domestic support.
Limitation
- Extremely high P/E (179) vs industry average (31.0).
- Weak ROE (3.95%) and ROCE (6.42%).
- EPS very low at ₹0.61.
- Quarterly PAT declined sharply (-32.6%).
Company Negative News
- Sharp decline in quarterly profits.
- Valuation stretched beyond fundamentals.
Company Positive News
- DII inflows (+0.27%) show domestic confidence.
- Government support for renewable energy initiatives.
Industry
- Renewable energy sector benefits from long-term policy support.
- Industry P/E at 31.0 highlights NTPCGREEN’s extreme premium valuation.
- Sector growth potential remains strong, but profitability is key.
Conclusion
⚖️ NTPCGREEN demonstrates weak fundamentals with poor profitability and extreme overvaluation. Entry is favorable only near ₹95–₹100 for risk-tolerant investors. Current levels suggest caution, with better opportunities on dips. Long-term holding is viable only if earnings improve and valuations normalize.