⚠ 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: 2.8
| Stock Code | NTPCGREEN | Market Cap | 72,685 Cr. | Current Price | 86.3 ₹ | High / Low | 118 ₹ |
| Stock P/E | 141 | Book Value | 22.2 ₹ | Dividend Yield | 0.00 % | ROCE | 6.42 % |
| ROE | 3.95 % | Face Value | 10.0 ₹ | DMA 50 | 92.9 ₹ | DMA 200 | 100 ₹ |
| Chg in FII Hold | -0.18 % | Chg in DII Hold | 0.17 % | PAT Qtr | 60.3 Cr. | PAT Prev Qtr | 86.0 Cr. |
| RSI | 35.9 | MACD | -1.20 | Volume | 1,45,99,686 | Avg Vol 1Wk | 80,93,209 |
| Low price | 84.6 ₹ | High price | 118 ₹ | Debt to equity | 0.42 | 52w Index | 5.26 % |
| Qtr Profit Var | -32.6 % | EPS | 0.61 ₹ | Industry PE | 25.6 |
📊 Core Financials
- Revenue & Profitability: Quarterly PAT declined from 86 Cr. to 60.3 Cr. (-32.6%), showing earnings weakness. EPS at 0.61 ₹ is very low relative to market price.
- Margins: ROCE at 6.42% and ROE at 3.95% are weak, reflecting limited efficiency and profitability.
- Debt: Debt-to-equity ratio of 0.42 indicates moderate leverage, manageable but concerning given low returns.
- Cash Flow: Dividend yield of 0.00% shows no shareholder payout, reflecting reinvestment focus but weak cash distribution.
💹 Valuation Indicators
- P/E Ratio: 141 vs Industry PE of 25.6 → Extremely overvalued compared to peers.
- P/B Ratio: Current Price (86.3 ₹) / Book Value (22.2 ₹) ≈ 3.89 → Premium valuation.
- PEG Ratio: Not meaningful due to weak earnings growth.
- Intrinsic Value: Current price trades well above fair value, limiting upside potential.
🏭 Business Model & Competitive Advantage
- NTPC Green Energy focuses on renewable power generation, leveraging parent NTPC’s infrastructure and government backing.
- Strong positioning in India’s renewable energy transition provides long-term potential.
- Weak profitability and high valuations currently limit competitive strength.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive accumulation range between 70 ₹ – 75 ₹, closer to support levels and below DMA 200.
- Long-Term Holding: Suitable for investors with high risk tolerance seeking exposure to renewables. Staggered buying recommended due to overvaluation and weak near-term profitability.
✅ Positive
- Government backing through NTPC ensures stability.
- Strategic focus on renewable energy aligns with long-term industry growth.
- DII holding increased by 0.17%, showing domestic institutional support.
⚠️ Limitation
- Extremely high P/E ratio (141) indicates stretched valuations.
- Weak ROCE (6.42%) and ROE (3.95%) highlight poor efficiency.
- No dividend yield, limiting shareholder returns.
📉 Company Negative News
- Quarterly PAT declined from 86 Cr. to 60.3 Cr.
- FII holding decreased by 0.18%, showing reduced foreign investor confidence.
📈 Company Positive News
- DII inflows (+0.17%) highlight domestic institutional interest.
- Strong renewable energy focus positions company for long-term growth.
🌐 Industry
- Renewable energy sector benefits from government incentives and rising demand for clean power.
- Industry PE at 25.6 suggests NTPC Green trades at a steep premium, reflecting growth expectations but weak fundamentals.
🔎 Conclusion
NTPC Green Energy is strategically positioned in India’s renewable energy transition, backed by NTPC and government support. However, weak profitability, high valuations, and no dividend yield limit near-term attractiveness. Investors may consider entering around 70–75 ₹ for long-term exposure to renewables, but cautious staggered buying is advised until earnings improve.
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