Subscribe for NTPC Green Energy Ltd IPO; Geojit Financial Services

Geojit Financial Services, has come out with its report on NTPC Green Energy Ltd. The research firm has recommended to “ Subscribe” the ipo in its research report as on November 18 2024.

Broker Research

November 19, 2024 / 10:18 IST

IPO

Geojit Financial Services, NTPC Green Energy Ltd

NTPC Green Energy Ltd. (NGEL), a wholly owned subsidiary of NTPC Ltd., a ‘Maharatna’ central public sector enterprise, focused on developing utility-scale solar and wind energy projects, as well as projects for PSUs and corporates. As of H1FY25, NGEL’s portfolio comprised 16,896 MW, including 3,320 MW of operational projects and 13,576 MW of contracted and awarded projects. Additionally, it has 9,175 MW capacity in the pipeline, bringing the total capacity to 26,071 MW. NGEL serves 17 offtakers across 41 solar and 11 wind projects and is currently constructing 36 renewable energy projects totalling 13,576 MW in 6 states. The energy demand in India is projected to grow by ~5.5-6.0% over the next five years, driven by infrastructure investments, strong economic fundamentals, T&D expansion, and government reforms to enhance power sector.

Valuation and Outlook

At the upper price band of ₹108, NGEL is available at P/Bv of 4.9x (on FY25E annualised financials), which appears to be fairly priced. We assign a “Subscribe” rating for the issue on a long-term investment basis, considering its strong brand recall, superior execution capabilities, portfolio expansions, investment in nextgen energy solutions (Battery Energy Storage Systems & Green Hydrogen derivatives) and promising industry outlook.

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