Author: Prashant Marathe
Date Published: May 21, 2025
⚡ At a Glance
- Total Income (Q4): ₹751.50 Cr
- Net Profit (Q4): ₹233.21 Cr
- EPS (Q4): ₹0.28
- CMP: ₹107
- EduFair Value: ₹115–₹125
👉 Verdict: Stable, clean, and surprisingly profitable. But don’t overcharge expectations.
🏢 About the Company
NTPC Green Energy Ltd is the clean energy arm of NTPC, focusing on:
- Solar & wind energy
- Renewable project development
- Hybrid energy parks
It was spun out to boost ESG credentials and attract green capital. But it’s also a solidly profitable unit.
📊 Q4 FY25 Snapshot
| Metric | ₹ Cr |
|---|---|
| Total Income | ₹751.50 |
| Net Profit | ₹233.21 |
| EPS (Basic) | ₹0.28 |
| Net Margin | ~31% |
That’s a clean margin, even cleaner than the energy they sell.
🧠 EduInvesting Take
“NTPC Green isn’t just a greenwashed shell — it’s the rare PSU spin-off that actually performs.”
✅ High net margin
✅ NTPC parent = financial support
✅ Likely to bag new PLI + solar park deals
❌ Low liquidity
❌ EPS still low (0.28)
It’s a steady compounding green PSU, not a solar meme coin.
🧮 EduFair Value Estimate
- EPS (Q4): ₹0.28 → Annual EPS ≈ ₹1.10
- Assign a P/E of 100x? No. Let’s keep it real.
✅ Use 100x only if FOMO kicks in
🎯 Realistic P/E = 100x (green premium)
➡ Fair Value = ₹110–₹125
CMP = ₹107 → Slightly undervalued, but not screaming.
⚠️ Risks
- ⚖️ PSU governance still applies
- 🌧️ Renewable execution delays (common with SECI tenders)
- 💸 EV/smart grid hype hasn’t translated into earnings yet
- 📈 Expensive if EPS doesn’t grow from ₹0.28
💸 CMP vs Fair Value
| Metric | Value |
|---|---|
| CMP | ₹107 |
| EduFair Value | ₹115–₹125 |
| Upside | ~7–17% |
| FOMO Factor | Medium 🔶 |
🏁 EduFinal Word
NTPC Green is:
- Clean ✅
- Profitable ✅
- Slightly undervalued ✅
- Quietly compounding ✅
Edu Verdict:
Hold or accumulate on dips.
Not a breakout rocket — but a solar-powered diesel generator: slow, steady, consistent.
