Shares of NTPC Green Energy, a wholly owned subsidiary of NTPC Limited that recently debuted on Dalal Street, have been on a steady upward trajectory. In today’s trade, December 4, the stock jumped another 9.3 per cent, reaching a fresh all-time high of ₹155.35 per share.
This came after the stock hit the 10 per cent upper circuit limit in the previous trading session, marking its first circuit limit since listing. Despite a muted debut on the stock exchanges on November 27, the stock gained momentum in the following trading sessions and is now trading 44 per cent higher than its IPO price of ₹108, at its all-time high price.
Following its listing, analysts have provided a positive outlook on the stock, emphasising the company’s strong fundamentals and its solid position within India’s renewable energy sector.
The company had offered a ₹10,000 crore issue for subscription from November 19 to November 22. This garnered substantial interest, and the offer was subscribed 2.55 times.
Strategic focus on utility-scale renewable energy projects
NTPC Green is the largest renewable energy public sector enterprise (excluding hydro) in terms of operating capacity as of September 30, 2024, and power generation in fiscal 2024, according to a CRISIL report, November 2024.
Its renewable energy portfolio encompasses both solar and wind power assets with a presence across multiple locations in more than six states, which helps mitigate the risk of location-specific generation variability. Its operational capacity was 3,220 MW of solar projects and 100 MW of wind projects across six states as of September 30, 2024.
As of September 30, 2024, its portfolio consisted of 16,896 MWs, including 3,320 MWs of operating projects and 13,576 MWs of contracted and awarded projects. Its capacity under the pipeline, together with its portfolio, consisted of 26,071 MWs. It had 17 off-takers across 41 solar projects and 11 wind projects.
The company is strategically focused on developing a portfolio of utility-scale renewable energy projects, as well as projects for public sector undertakings (PSUs) and Indian corporates.
As of September 30, 2024, its capacity under pipeline, together with its portfolio, consisted of 26,071 MWs. NTPC Green Energy’s revenue from operations has grown at a CAGR of 46.82 per cent from ₹910.42 crore in discal 2022 to ₹1,962.60 crore in fiscal 2024.
Its operating EBITDA has grown at a CAGR of 48.23 per cent from ₹794.89 crore in fiscal 2022 to ₹1,746.47 crore in fiscal 2024 (on a restated basis). Its profit after tax has grown at a CAGR of 90.75 per cent from ₹94.74 crore in fiscal 2022 to ₹344.72 crore in fiscal 2024.
For the six months ended September 30, 2024, revenue from operations stood at ₹1,082 crore, and profit after tax stood at ₹1,75.30 crore.
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