NTPC Green Energy Shares Surge Over 2% After MoU With BLP to Advance Green Hydrogen Initiatives
NTPC Green Energy Shares : New Delhi, February 21, 2025 – Shares of NTPC Green Energy Limited (NGEL) climbed 2.2% in early trade on Wednesday, reaching ₹108.40 per share. This rise came after the company signed a Memorandum of Understanding (MoU) with Bharat Light and Power Private Limited (BLP) to advance green hydrogen production and accelerate India’s transition toward a carbon-neutral economy.
This latest development has strengthened investor confidence in NTPC Green Energy, which recently debuted on the stock market. Analysts believe this move will enhance the company’s green energy footprint, positioning it as a key player in India’s renewable energy sector.
MoU to Boost Green Hydrogen & Carbon Capture Initiatives
The MoU signed between NTPC Green Energy and BLP will focus on:
- Developing Green Hydrogen & Derivatives: The companies will explore opportunities to sell green hydrogen and its derivatives to third-party buyers.
- Carbon Capture & Utilization: They will also look at potential markets for selling captured carbon or biogenic carbon from NGEL projects.
- Infrastructure Development: NGEL, either directly or through affiliates, will set up renewable energy (RE) projects and operate them under the Build-Own-Operate (BOO) model.
With India targeting net-zero emissions by 2070 and aiming for 500 GW of renewable energy capacity by 2030, this partnership is expected to play a crucial role in achieving national sustainability goals.
Recent Strategic Developments
NTPC Green Energy has been actively expanding its renewable portfolio. Recently, its joint venture ONGC NTPC Green Private Limited (ONGPL), a 50:50 partnership between ONGC Green Limited (OGL) and NGEL, made a major acquisition in the renewable energy space.
On February 12, 2025, ONGPL signed a Share Purchase Agreement (SPA) to acquire 100% equity stake in Ayana Renewable Power Private Limited for an enterprise value of ₹195 billion (USD 2.3 billion).
Key Highlights of the Acquisition:
- Ayana Renewable Power has 4.1 GW of operational and under-construction renewable energy assets.
- It has a development pipeline of around 1 GW in resource-rich states.
- Contracts with High-Credit Off-Takers: Key customers include Solar Energy Corporation of India (SECI), NTPC, Gujarat Urja Vikas Nigam Limited (GUVNL), and Indian Railways.
“This acquisition marks a significant milestone for ONGPL, accelerating its expansion in India’s green energy sector,” the company said in an official filing.
Financial Performance & Market Outlook
NTPC Green Energy has delivered strong financial results for Q3FY25, showcasing consistent growth and operational efficiency.
Q3FY25 Key Financial Highlights
- Net Profit: ₹66 crore (YoY Growth: 17.9%)
- Revenue from Operations: ₹505 crore (YoY Growth: 13.2%)
- QoQ Profit Growth: 78.8%
NTPC Green is currently India’s largest renewable energy public sector enterprise (excluding hydro) in terms of operating capacity and power generation as of September 30, 2024, according to a CRISIL report.
With a diversified portfolio of solar and wind assets across six states, NTPC Green Energy is well-positioned to mitigate risks associated with location-based generation variability.
Stock Market Performance & Key Financial Ratios
Stock & Financial Metrics (as of February 21, 2025)
| Metric | Value |
|---|---|
| Market Cap | ₹89,108 Cr. |
| Current Price | ₹106 |
| 52-Week High/Low | ₹155 / ₹103 |
| Stock P/E | 258 |
| ROCE (Return on Capital Employed) | 7.60% |
| ROE (Return on Equity) | 6.20% |
| Debt to Equity | 2.22 |
| Promoter Holding | 89.0% |
| Dividend Yield | 0.00% |
| EPS (Earnings Per Share) | ₹0.60 |
| Pledged Percentage | 0.00% |
| Industry P/E | 29.6 |
| RSI (Relative Strength Index) | 35.6 (Oversold Zone) |
| 200-Day Moving Average (DMA) | ₹121 |
| Free Cash Flow (3Yrs) | ₹ -6,884 Cr. |
| Debt | ₹13,857 Cr. |
With an RSI of 35.6, the stock is currently in the oversold zone, indicating a potential rebound in the coming sessions.
Analyst Outlook & Future Prospects
Market experts remain bullish on NTPC Green Energy, citing:
✅ Strong Parent Support from NTPC Ltd.
✅ Expanding Green Energy Portfolio with solar, wind, and green hydrogen projects.
✅ Strategic Acquisitions & Partnerships to strengthen India’s renewable energy mission.
While the stock is currently trading below its 200-day moving average, investors are closely watching future developments in green hydrogen and carbon capture projects.
Conclusion
With a robust growth strategy, strong financials, and government-backed sustainability initiatives, NTPC Green Energy is well-positioned to lead India’s renewable energy transformation.
The recent MoU with BLP, coupled with the Ayana Renewable Power acquisition, underscores its commitment to expanding its clean energy footprint.
As India accelerates its net-zero emissions journey, NTPC Green Energy remains a stock to watch in the evolving renewable energy sector.
For more market insights, follow our news.
Stay tuned for more updates and insights on the stock market! For more insights on investing in the Indian stock market, check out resource like ET, NSE India.
Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.