NTPC Green Ene. (NTPCGREEN)

FairStock Score: 18/100 — RISKY

Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

At ₹113.76, NTPC Green Energy is the kind of stock that makes me reach for my wallet only to put it away. The business is real and the parentage is strong, with NTPC's 89.01% promoter holding providing stability. But a good parent does not justify a bad price. Sales grew 22.55% and profit rose 72.88% from a tiny base, yet the latest quarter earned just ₹17 Cr on ₹653 Cr of sales. That is thin, commodity-like economics. ROE of 3.03% and ROCE of 4.89% are far below what I expect from a great business. Free cash flow is deeply negative at -₹15,794 Cr; the company is burning capital faster than it is generating it. Debt-to-equity of 1.16 is manageable, but for a business earning such low returns, leverage magnifies risk. Valuation is beyond reason: P/E of 135.93, P/B of 5.20, EV/EBITDA of 518.26, and PEG of 4.80. Graham's number is ₹17.75, meaning my margin of safety is -407.77%. I would rather miss this growth story than overpay and hope. The Piotroski F-score of 7 suggests operational discipline, but Altman Z of 1.62 warns of financial stress. With zero dividend and no earnings cover, the patient holder is asked to wait forever at a rich price. As Graham said, price is what you pay, value is what you get. Here the value is not evident at ₹113.76. Only a dramatic improvement in returns and cash flow could make me reconsider. Until then, I watch, I do not buy.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer