NTPC Green Ene. (NTPCGREEN)
Fast GrowerFairStock Score: 18/100 — RISKY
Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹91.93 |
| Market Cap | ₹77,462.27 Cr |
| P/E Ratio | 148.27 |
| ROCE | 4.89% |
| ROE | 3.03% |
| Dividend Yield | 0% |
| Profit Growth | -7.55% |
| Debt/Equity | 1.65 |
| Sales Growth | -4.87% |
| Free Cash Flow | ₹-15,794 Cr |
| Promoter Holding | 89.01% |
| 52-Week Range | ₹84 — ₹119.95 |
| Sector | Power |
| Book Value | ₹22.14 |
Strengths
- Promoter holding of 89.01% with NTPC parentage provides strong sponsorship and execution support
- Revenue growth of 22.55% and profit growth of 72.88% show rapid expansion
- Piotroski F-Score of 7/9 points to decent operational discipline
- Positioned in renewable power, benefiting from India's long-term energy transition tailwinds
Concerns
- Extreme valuation: P/E of 135.93, EV/EBITDA of 518.26, and PEG of 4.80 leave no margin of safety
- Weak capital efficiency: ROE of 3.03% and ROCE of 4.89% are far below acceptable levels
- Heavy cash burn: Free cash flow is -₹15,794 Cr, indicating reliance on external funding
- Altman Z-Score of 1.62 signals elevated financial stress for the current capital structure
AI Analysis
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.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer