Best Green Hydrogen Stocks in India in September 2024- 5-year CAGR Basis

With India setting an ambitious target of achieving net zero emissions by 2070, the focus on green hydrogen has never been more intense. The National Green Hydrogen Mission, launched in January 2023, is a key initiative to support domestic hydrogen production and position India as a competitive player in the global market. There are several companies contributing to the sector’s growth.. This article explores the best green hydrogen stocks in India in September 2024, based on the 5yr CAGR.

Best Green Hydrogen Stocks In India In September 2024 – 5-Yr CAGR Basis

Note: The best hydrogen energy stocks list has been selected from the Nifty 500 universe and has been sorted based on 5-yr CAGR, and as of September 06, 2024

Overview Of Best Green Hydrogen Stocks In India

• Adani Green Energy Limited

Adani Green Energy Limited, founded in 2015, is a parent company with multiple subsidiaries focused on renewable energy. It primarily generates renewable power, especially from wind projects, and sells the electricity through long-term Power Purchase Agreements (PPAs). The company also sells solar and wind power equipment, offers project management consultancy services, and handles other related activities.

For the quarter ended March 2024, the company’s revenue decreased to ₹3,383.00 crore from ₹7,304.00 crore in the preceding quarter. Meanwhile, the net profit increased to -₹89.00 crore from -₹195.00 crore in the previous quarter. 

Key metrics: 

• Earning per share (EPS): -₹2.71
• Return on equity (ROE): -5.73%

• Adani Power (APL)

Adani Power (APL), a division of the Adani Group, stands as India’s largest private thermal power producer. The company, along with its subsidiaries, generates power from its thermal projects and sells it through a mix of long-term and short-term Power Purchase Agreements (PPAs), as well as on a merchant basis. With a total capacity of 15,210 MW spread across 8 power plants, Adani Power plays a significant role in meeting the country’s energy needs.

For the quarter ended March 2024, the company’s revenue increased to ₹11,393.75 crore from ₹10,140.11 crore in the preceding quarter. Meanwhile, the net profit increased to ₹2,454.88 crore from ₹1,831.29 crore in the previous quarter. 

Key metrics: 

• EPS: ₹33.89
• ROE: 33.13%

• JSW Energy Ltd

JSW Energy Ltd and its subsidiaries focus on generating power from their facilities in Karnataka, Maharashtra, Nandyal, and Salboni. It serves as the holding company for the JSW group’s power operations. Additionally, the company has a joint venture involved in mining and an associate company that manufactures turbines.

For the quarter ended March 2024, the company’s revenue decreased to ₹1,049.61 crore from ₹1,235.97 crore in the preceding quarter. Meanwhile, the net profit decreased to ₹253.66 crore from ₹342.22 crore in the previous quarter. 

Key metrics: 

• EPS: ₹5.94
• ROE: 6.87%

• IRB Infrastructure Developers Ltd

IRB Infrastructure Developers Ltd is an Indian company specializing in infrastructure development and construction, particularly in roads and highways. Besides its focus on road maintenance, it is also involved in building airports, real estate projects, and other infrastructure activities.

For the quarter ended March 2024, the company’s revenue decreased to ₹1,254.41 crore from ₹1,425.95 crore in the preceding quarter. Meanwhile, the net profit decreased to ₹141.84 crore from ₹313.57 crore in the previous quarter. 

Key metrics: 

• EPS: ₹1.32
• ROE: 8.37%

• Ircon International Limited

Ircon International Limited (IRCON) started in 1976 as a railway construction company. Since 1985, it has expanded its operations to become a full-service engineering and construction public sector unit (PSU). IRCON now specialises in large and complex infrastructure projects across different sectors, including railways and highways.

For the quarter ended March 2024, the company’s revenue decreased to ₹2,180.48 crore from ₹3,648.98 crore in the preceding quarter. Meanwhile, the net profit decreased to ₹176.51 crore from ₹285.68 crore in the previous quarter. 

Key metrics: 

• EPS: ₹9.33
• ROE: 15.21%

Hydrogen Sector Outlook

India is poised for significant growth in clean and renewable energy, driven by government support, technological advances, and investment. The country aims to achieve net zero emissions by 2070, with rapid expansions expected in solar, wind, and other renewable energy sources. 

By 2032, the National Electricity Plan (NEP) projects a major increase in renewable energy generation, with solar expected to contribute 50% and wind 16%. The government is also focusing on green hydrogen, ethanol blending, and electric vehicles, supported by policies like the $2.9 billion (₹24,000 crore) PLI scheme for solar PVs. These efforts highlight India’s commitment to global climate goals and its goal to become a leading force in renewable energy.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.