NTPC Green Energy Shares Debut with Modest Gains; Analysts Remain Optimistic About Long-Term Growth

NTPC Green Energy made its debut on the stock market on Wednesday, November 27, with a somewhat lukewarm reception. The company’s shares listed at ₹111.50 on the National Stock Exchange (NSE), reflecting a modest 3.2% premium over its issue price of ₹108. On the Bombay Stock Exchange (BSE), the stock fared slightly better, opening at ₹111.60, representing a 3.3% premium. Despite the initial lackluster response, the stock gained traction later in the session, rising to ₹122.65, which marked a 13.56% increase over its issue price.

However, the debut fell short of the enthusiastic investor response during the initial public offering (IPO), where demand for the stock had been high. This contrasted with the relatively muted opening, leading some to question the market’s reception of the green energy company’s entry into the stock market.

Analysts Predict Strong Long-Term Prospects

Despite the tepid initial response, analysts remain optimistic about NTPC Green Energy’s future, particularly due to its strong fundamentals and its strategic position in India’s burgeoning renewable energy sector.

Investors Advised to Hold Long-Term

VLA Ambala, co-founder of Stock Market Today, recommended that investors with allotments in NTPC Green Energy should hold their positions for at least two years. Ambala emphasized the company’s solid financial base and the bright prospects of the renewable energy sector. He also encouraged non-allotted investors to consider exploring opportunities in the secondary market but cautioned that short-term volatility might lead to disappointing results.

Ambala further suggested that investors with a 3 to 6-year investment horizon could target a price range of ₹250 to ₹600, reflecting the company’s potential for substantial growth in the coming years.

Experts Cite NTPC Green Energy’s Strategic Positioning

Prashanth Tapse, Senior VP of Research at Mehta Equities, remarked that the flat debut was in line with expectations given the subdued market mood and the company’s valuations. However, he emphasized that NTPC Green Energy presents a prime long-term investment opportunity for those looking to bet on India’s renewable energy sector. Tapse also highlighted the company’s strategic focus on expanding into green hydrogen, chemicals, and battery storage, which could place it at the forefront of India’s energy transition in the future. “For long-term investors, NTPC Green Energy is an excellent opportunity to invest in a leading player in India’s renewable energy sector, backed by the formidable resources and expertise of NTPC Ltd as a long-term strategy only,” Tapse noted.

Strategic Expansion and a Robust Portfolio

Manish Chowdhury, Head of Research at StoxBox, shared a similar view, advising investors to maintain their holdings with a medium- to long-term perspective. Chowdhury pointed out that NTPC Green Energy benefits from its association with NTPC, which has more than five decades of experience in the energy sector. The company’s strong partnerships and advanced operations and maintenance (O&M) technologies position it well for continued success in the renewable energy space.

Chowdhury also highlighted NTPC Green Energy’s extensive portfolio, which includes 16,896 MW of solar and wind projects. With a pipeline capacity of 9,175 MW and long-term power purchase agreements (PPAs) with government agencies and public utilities, NTPC Green Energy is well-diversified and poised to take advantage of India’s growing renewable energy demand. “Given its strategic development and solid financial growth, the company is well-positioned to capitalise on growth opportunities in the renewable energy sector,” Chowdhury said.

A Strong Foundation for Growth in India’s Renewable Sector

NTPC Green Energy is seen as a key player in India’s renewable energy sector, backed by its parent company’s resources and its aggressive expansion plans. The company is targeting a renewable energy capacity of 60 GW by 2032, aligning with India’s ambitious goals for sustainable energy growth.

As NTPC Green Energy continues to expand its reach, particularly in solar, wind, and emerging green technologies, it is well-positioned to capitalize on India’s transition towards cleaner energy. Analysts believe that despite the rocky start on the stock market, the company’s long-term growth prospects remain strong, and it could see significant appreciation in the years ahead.