As of January 15, 2025, NTPC Green Energy Limited (NSE: NTPCGREEN) is trading at ₹122 per share, reflecting a 0.62% increase from the previous close.
Key Stock Information:
- Current Price: ₹122
- 52-Week Range: ₹109 – ₹155
- Market Capitalization: Approximately ₹1,02,591 crore
- Price-to-Earnings (P/E) Ratio: 298
- Earnings Per Share (EPS): ₹0.24 (as of September 2024)
- Dividend Yield: 0.00%
Recent Financial Performance:
- Revenue (Half-Year Ended September 2024): ₹1,082 crore, up from ₹1,008 crore in September 2023
- Net Profit (Half-Year Ended September 2024): ₹175 crore, down from ₹208 crore in September 2023
- Operating Profit Margin (OPM): 86% in September 2024, compared to 91% in September 2023
Recent Developments:
- Commercial Operations: On January 9, 2025, NTPC Green Energy commenced operations for an additional 60 MW capacity at the Bhainsara Solar project and 50 MW at the Shajapur Solar project.
- Joint Venture: On January 8, 2025, the company incorporated NTPC Rajasthan Green Energy Limited, a joint venture aimed at expanding renewable energy initiatives.
Analyst Insights:
- 12-Month Price Target: The Economic Times reports a median price target of ₹68, suggesting a potential downside from the current price.
Investment Considerations:
- Pros:
- Revenue Growth: The company has demonstrated an increase in revenue year-over-year.
- Operational Expansion: Recent project commencements indicate ongoing growth in renewable energy capacity.
- Cons:
- High P/E Ratio: A P/E of 298 suggests the stock may be overvalued relative to earnings.
- Declining Net Profit: A decrease in net profit and operating margins may raise concerns about profitability.
- Analyst Price Target: The reported price target indicates potential downside risk.
Conclusion:
NTPC Green Energy Limited is actively expanding its renewable energy portfolio, contributing to revenue growth. However, investors should carefully assess the high valuation metrics, declining profitability, and analyst projections before making investment decisions.
