Check Before You Invest : NTPC Green Energy Ltd

Snapshot

Q.1 Which industry/sub-sector does NTPC Green Energy Ltd belong to?

NTPC Green Energy Ltd belongs to the Power sector, operating specifically within the Power Generation/Distribution segment.

Q.2 Is NTPC Green Energy Ltd a good quality company?

NTPC Green Energy Ltd is a weak quality company, based on a inconsistent 3-year financial track record.

Q.3 Is NTPC Green Energy Ltd undervalued or overvalued?

NTPC Green Energy Ltd appears Somewhat overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is NTPC Green Energy Ltd a good buy now?

NTPC Green Energy Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Return on capital employed (ROCE) of NTPC Green Energy Ltd?

NTPC Green Energy Ltd Return on capital employed is 6.46% for FY-2025, which is in line with its 3-year historical median of 6.46%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 11.25%, indicating value preservation.

Q.2 Return on Asset of NTPC Green Energy Ltd?

NTPC Green Energy Ltd Return on Asset is 2.01%, which is in line with its 3-year historical median of 2.01%, indicating stable asset utilization efficiency.

Q.3 Return on Equity (ROE) of NTPC Green Energy Ltd?

NTPC Green Energy Ltd Return on equity is 3.95% for FY-2025, which is in line with its 3-year historical median of 3.95%, indicating the business is making similar use of its shareholders capital.

Q.4 Gross Profit margin of NTPC Green Energy Ltd?

NTPC Green Energy Ltd Gross profit margin which is the profit after deduction of direct costs, is 66% for FY-2025, which is above its 3-year median of 62.6%, indicating increasing margins.

Q.5 Operating Profit Margin of NTPC Green Energy Ltd?

NTPC Green Energy Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 86.09% for FY-2025, which is in line with its 3-year median of 89.59% indicating stable margins.

Q.6 Net Profit Margin of NTPC Green Energy Ltd?

NTPC Green Energy Ltd Net Profit Margin is 24.19% for FY-2025, is in line with with its 3-year median of 24.19%, indicating stable margins.

	Current Level	3-year Historic Median
Gross Profit Margin	66	62.6
Operating Profit Margin	86.09	89.59
Net Profit Margin	24.19	24.19

Q.7 Debt to Equity ratio of NTPC Green Energy Ltd?

NTPC Green Energy Ltd Debt-to-Equity ratio is 0.44, which is lower with the industry average of 0.84, indicating lower debt levels in the industry.

Q.8 Debt to cash flow from operations of NTPC Green Energy Ltd?

NTPC Green Energy Ltd Debt to cash flow from operations is 4.29, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of NTPC Green Energy Ltd?

Promoters hold 89.01% of the NTPC Green Energy Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of NTPC Green Energy Ltd vs industry peers?

NTPC Green Energy Ltd revenue CAGR is 0.00%, compared to the industry median CAGR of 8.6%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	3-year Industry Median
Revenue Growth	-	8.6
Gross Profit Growth	16.5	2.5
Operating Profit Growth	-0.4	6.6
Net Profit Growth	32.2	9.9

Operating Efficiency

	Current Level	3-year Industry Median
Asset Turnover	0.08	0.21
ROE	3.95	10.58
ROCE	6.46	8.37
Cash Conversion Cycle (days)	82.91	73

Valuation & price assessment

Q.1 Stock return of NTPC Green Energy Ltd over the last decade?

Over the last 1 year(s), the stock has delivered a CAGR of 8.89% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	-	8.9%

Q.3 Valuation ratios of NTPC Green Energy Ltd vs historical?

The current P/E is similar that its historical median.

Q.4 How do the current valuation ratios compare with 3-year historical median and industry numbers?

Valuation Ratios	Current	3-year Historic Median	3-year Industry Median
Price to Earnings	178.65	183.68	33.23
Price to Book	4.91	4.64	1.97
Price to Sales	45.78	43.03	7.29
EV to EBITDA	49.88	47.61	17.22

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