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Best Green Energy Sector Stocks - Waaree Energies Vs NTPC Green Energy

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Best Green Energy Sector Stocks – Waaree Energies Vs NTPC Green Energy

Table of Contents

Company Overview of NTPC Green Energy Ltd

NTPC Green Energy Ltd is a subsidiary of NTPC Ltd, India’s largest power utility. Established to focus on renewable energy, NTPC Green Energy specialises in the development, generation and distribution of clean energy, including solar, wind and hydroelectric power. 

The company plays a crucial role in NTPC’s transition towards sustainability, aiming to achieve a significant reduction in carbon emissions by increasing its renewable energy capacity. NTPC Green Energy is part of the broader NTPC Group’s efforts to diversify its energy portfolio and contribute to India’s renewable energy goals.  

Company Overview of Waaree Energies Ltd

Waaree Energies Ltd, established in 1990 and headquartered in Mumbai, India, is a leading solar photovoltaic (PV) module manufacturer. As of June 30, 2024, the company boasts an aggregate installed capacity of 12 GW across its facilities in Chikhli, Surat, Tumb and Nandigram in Gujarat. 

Waaree offers a diverse range of solar products, including Mono PERC, Bifacial, BIPV, Flexible and Polycrystalline modules. Beyond manufacturing, the company provides comprehensive solar solutions such as engineering, procurement and construction (EPC) services, project development, rooftop installations and solar water pumps, serving domestic and international markets.

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The Stock performance of NTPC Green Energy

The table below displays the month-by-month stock performance of NTPC Green Energy Ltd Ltd for the past year.

MonthReturn (%)
Nov-202414.57

The Stock performance of Waaree Energies

The table below displays the month-by-month stock performance of Waaree Energies Ltd Ltd for the past year.

MonthReturn (%)
Oct-20248.88
Nov-2024-4.04

Fundamental Analysis of NTPC Green Energy

NTPC Green Energy Ltd is a prominent player in the renewable energy sector, focused on sustainable power generation. A subsidiary of NTPC Limited, it aims to enhance the country’s green energy capacity through investments in solar, wind and other renewable sources. The company is committed to reducing carbon emissions and promoting environmentally friendly practices, aligning with national energy policies for a greener future.   

The stock has a closing price of ₹134.83 and a market capitalization of ₹1,13,612.20 crore. With a book value of ₹6,232.21, it has delivered a 1-year and 6-month return of 10.83%, while its 1-month return surged to 20.55%, standing 15.22% below its 52-week high.

  • Close Price ( ₹ ): 134.83
  • Market Cap ( Cr ): 113612.20 
  • Book Value (₹): 6232.21
  • 1Y Return %: 10.83
  • 6M Return %: 10.83
  • 1M Return %: 20.55 
  • % Away From 52W High: 15.22  

Fundamental Analysis of Waaree Energies

WAAREE Energies Ltd. is a leading Indian multinational company specializing in solar energy solutions. With a strong emphasis on innovation and sustainability, the company aims to provide affordable and efficient solar power solutions to its customers.   The company has a significant presence in both the domestic and international markets, exporting to over 68 countries.  

The stock, priced at ₹3,042.15, boasts a market capitalization of ₹87,308.24 crore and a book value of ₹4,148.49. It delivered a robust 1-year and 6-month return of 30.07%, with a 1-month return of 5.89%, standing 23.04% below its 52-week high. Over five years, the average net profit margin is 4.89%.

  • Close Price ( ₹ ): 3042.15
  • Market Cap ( Cr ): 87308.24 
  • Book Value (₹): 4148.49
  • 1Y Return %: 30.07
  • 6M Return %: 30.07
  • 1M Return %: 5.89 
  • % Away From 52W High: 23.04
  • 5Y Avg Net Profit Margin %: 4.89 

Financial Comparison of NTPC Green Energy and Waaree Energies

The table below shows a financial comparison of NTPC Green Energy Ltd and Waaree Energies Ltd.

StockNTPC Green EnergyWaaree Energies
Financial typeFY 2023FY 2024FY 2023FY 2024
Total Revenue (₹ Cr)170.822039.496860.3611974.11
EBITDA (₹ Cr)153.191824.65923.552150.93
PBIT (₹ Cr)103.281181.89759.421874.12
PBT (₹ Cr)52.54488.20677.151734.21
Net Income (₹ Cr)171.21344.71482.751237.19
EPS (₹)0.360.6621.9248.87
DPS (₹)0.000.000.00.0
Payout ratio (%)0.000.000.00.0

Points to be noted:

  • EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization): Measures a company’s profitability before accounting for financial and non-cash expenses.
  • PBIT (Profit Before Interest and Tax): Reflects operating profit by excluding interest and taxes from total revenue.
  • PBT (Profit Before Tax): Indicates profit after deducting operating costs and interest but before taxes.
  • Net Income: Represents the company’s total profit after all expenses, including taxes and interest, are deducted.
  • EPS (Earnings Per Share): Shows the portion of a company’s profit allocated to each outstanding share of stock.
  • DPS (Dividend Per Share): Reflects the total dividend paid out per share over a specific period.
  • Payout Ratio: Measures the proportion of earnings distributed as dividends to shareholders.

Dividend of NTPC Green Energy and Waaree Energies Ltd

NTPC Green Energy and Waaree Energies Ltd have not distributed dividends as they are relatively new entrants in the stock market. Typically, newly listed companies focus on growth and reinvestment of profits rather than immediate dividend payouts to shareholders.

Advantages and Disadvantages of Investing NTPC Green Energy Ltd

NTPC Green Energy Ltd

The primary advantage of NTPC Green Energy Ltd lies in its commitment to renewable energy, positioning itself as a pioneer in India’s transition towards sustainable power generation through solar, wind and other green energy sources. This focus enhances its strategic and environmental value.

  1. Strong Government Support: NTPC Green Energy Ltd benefits from robust backing by the government, ensuring financial stability and favourable policies, which provide a competitive edge in India’s evolving renewable energy sector.
  2. Diverse Renewable Portfolio: The company’s diverse energy portfolio includes solar, wind and hydrogen projects, demonstrating its capability to cater to varied energy demands and ensuring resilience against market fluctuations.
  3. Technological Innovation: By adopting cutting-edge technologies and innovative solutions, NTPC Green Energy maximizes efficiency in power generation, reduces costs and strengthens its position as a leader in the green energy domain.
  4. Scalable Infrastructure: NTPC Green Energy has established scalable projects that allow rapid expansion, helping meet growing energy demands while maintaining sustainability and cost-effectiveness.
  5. Commitment to Sustainability: With a focus on reducing carbon footprints, NTPC Green Energy contributes to global climate goals, reinforcing its role as a responsible energy producer and a preferred choice for eco-conscious stakeholders.

The main disadvantage of NTPC Green Energy Ltd is its dependency on initial high capital investments, which can pose financial constraints. The costs associated with infrastructure, technology and project setup significantly impact short-term profitability and scalability.

  1. High Initial Costs: Establishing renewable energy projects demands substantial upfront investments in technology and infrastructure, which can delay returns and strain financial resources, particularly in the early phases of development.
  2. Intermittent Energy Supply: Dependence on weather conditions, like sunlight and wind, can result in inconsistent energy output, necessitating costly storage solutions or backup systems to ensure a stable power supply.
  3. Regulatory Challenges: Navigating complex regulatory frameworks and securing approvals can delay project timelines, increasing costs and impacting the company’s ability to expand operations efficiently in a competitive energy market.
  4. Market Competition: The growing number of renewable energy players intensifies competition, putting pressure on pricing and margins while requiring continuous innovation to maintain a leading position in the market.
  5. Technological Dependence: Reliance on advanced technologies makes the company vulnerable to rapid technological obsolescence, requiring frequent upgrades and additional investments to stay competitive in the ever-evolving renewable energy landscape.

Advantages and Disadvantages of Investing in Waaree Energies

Waaree Energies Ltd

The primary advantage of Waaree Energies Ltd lies in its leadership in the solar energy industry, offering innovative and efficient solar modules and solutions that drive India’s renewable energy transition while ensuring environmental sustainability and energy independence.

  1. Market Leadership in Solar Modules: Waaree Energies is a leading manufacturer of high-quality solar modules, providing efficient and reliable solutions that have positioned it as a trusted name in India’s renewable energy sector.
  2. Robust Manufacturing Capacity: With state-of-the-art facilities, the company has a significant manufacturing capacity, enabling it to meet large-scale demand while ensuring consistent product quality and competitive pricing.
  3. Strong Research and Development: Waaree Energies focuses on continuous innovation, developing advanced solar technologies to enhance efficiency, reduce costs and maintain a competitive edge in the rapidly evolving renewable energy market.
  4. Global Presence: The company has expanded its reach to international markets, showcasing its capability to compete globally while diversifying revenue streams and enhancing its reputation in the renewable energy industry.
  5. Sustainability Commitment: Waaree Energies is dedicated to promoting clean energy and reducing carbon emissions, aligning with global climate goals and appealing to environmentally conscious consumers and investors.

The main disadvantage of Waaree Energies Ltd is its reliance on the solar energy market, which is vulnerable to fluctuations in demand, regulatory changes and raw material costs, affecting operational stability and profitability.

  1. Dependence on Solar Market: The company’s focus on solar energy exposes it to market volatility, with fluctuations in demand and pricing directly impacting revenue and growth potential in a competitive renewable energy sector.
  2. High Capital Expenditure: Establishing and expanding solar manufacturing facilities involves significant capital investments, which can strain financial resources and delay profitability, especially in periods of slow market growth.
  3. Raw Material Price Volatility: The reliance on imported raw materials like silicon exposes Waaree Energies to price volatility and supply chain disruptions, which can increase production costs and affect delivery timelines.
  4. Regulatory Risks: Changes in government policies, tariffs and subsidies for renewable energy can create uncertainties, impacting the company’s ability to plan long-term investments and operations effectively.
  5. Technological Challenges: The rapid pace of advancements in solar technology necessitates continuous upgrades, leading to additional investments and potential obsolescence of existing products, challenging the company’s ability to stay competitive.

How to Invest in Green Energy and Waaree Energies Ltd Stocks?

Investing in Green Energy and Waaree Energies Ltd stocks involves understanding the renewable energy sector, analyzing market trends and choosing a reliable broker like Alice Blue for seamless trading and efficient portfolio management.

  1. Research the Sector: Gain insights into the renewable energy market, focusing on growth trends, company fundamentals and potential risks. An informed decision is crucial for maximizing returns in this emerging investment landscape.
  2. Open a Trading Account: Choose a reputed broker like Alice Blue to open a Demat and trading account. Alice Blue provides user-friendly platforms, competitive brokerage rates and valuable tools for effective stock trading.
  3. Evaluate Company Performance: Analyze the financial performance and growth prospects of Green Energy and Waaree Energies Ltd by reviewing their financial reports, market standing and plans to make informed investment decisions.
  4. Invest Strategically: Decide your investment amount based on your risk tolerance and financial goals. Diversify your portfolio to reduce risks and balance potential losses with gains from other investments.
  5. Monitor Regularly: Keep track of your investments and market developments. Use platforms like Alice Blue for real-time updates and efficient management of your green energy stock portfolio.

NTPC Green Energy vs. Waaree Energies – Conclusion

NTPC Green Energy Ltd is a government-backed leader in renewable energy with a diversified portfolio in solar, wind and hydrogen projects. Its robust infrastructure, scalability and sustainability commitment make it a key player in India’s clean energy transition.

Waaree Energies Ltd specializes in solar energy, excelling in high-quality module manufacturing and global market expansion. Its innovation-driven approach, significant manufacturing capacity and sustainability focus establish it as a strong competitor in the renewable energy industry.

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Best Green Energy Sector Stocks – Waaree Energies Vs NTPC Green Energy – FAQ

What is NTPC Green Energy?

NTPC Green Energy refers to the initiatives and projects undertaken by NTPC Limited focusing on renewable energy production. This includes the development of solar, wind and other sustainable energy sources aimed at reducing carbon emissions and enhancing energy efficiency, contributing to a cleaner and more sustainable future.

What is Waaree Energies Ltd?

Waaree Energies Ltd is a leading Indian solar energy company specializing in the manufacturing of high-efficiency solar modules and providing renewable energy solutions. Known for its innovation and global presence, the company plays a significant role in advancing sustainable energy and reducing carbon emissions worldwide.

What are Green Energy Stocks?

Green energy stocks are shares of companies involved in renewable energy production, such as solar, wind, hydro and geothermal power. These stocks represent businesses focusing on sustainable energy solutions, offering environmentally friendly alternatives while capitalizing on the growing global demand for clean and renewable energy sources.

Who is the CEO of NTPC Green Energy Ltd?

Rajiv Gupta serves as the Chief Executive Officer (CEO) of NTPC Green Energy Limited (NGEL). With over 35 years of experience in the power sector, he has been leading NGEL since March 2024, focusing on advancing renewable energy initiatives in India. 

What Are The Main Competitors For NTPC Green Energy And Waaree Energies?

The main competitors for NTPC Green Energy include Tata Power Renewable Energy, Adani Green Energy and ReNew Power, focusing on diverse renewable projects. Waaree Energies faces competition from Vikram Solar, Adani Solar and Tata Power Solar, specializing in solar module manufacturing and renewable energy solutions.

What Is The Net Worth Of Waaree Energies Ltd Vs NTPC Green Energy?

As of December 20, 2024, NTPC Green Energy Ltd has a market capitalization of approximately ₹1.11 trillion, while Waaree Energies Ltd’s market cap is around ₹827.19 billion. Market capitalization reflects the total value of a company’s outstanding shares, serving as an indicator of its market valuation.

What Are The Key Growth Areas For NTPC Green Energy?

NTPC Green Energy focuses on key growth areas such as expanding solar and wind power capacities, exploring green hydrogen production and integrating energy storage solutions. The company emphasizes scalability, innovation and sustainability to support India’s renewable energy goals and strengthen its position as a green energy leader.

What Are The Key Growth Areas For Waaree Energies?

Waaree Energies focuses on expanding solar module manufacturing capacity, developing advanced solar technologies and exploring international markets. The company aims to enhance product efficiency, diversify renewable energy solutions and strengthen its position as a global leader in sustainable energy to meet growing clean energy demands.

Which Company Offers Better Dividends, NTPC Or Waaree Energies?

NTPC has a strong history of offering consistent dividends, benefiting from its stable revenue base and government backing. In contrast, Waaree Energies, being relatively new and growth-focused, prioritizes reinvestment over dividends, making NTPC a more reliable choice for dividend-seeking investors.

Which Stock Is Better For Long-term Investors, NTPC Or Waaree Energies?

For long-term investors, NTPC offers stability with its diversified energy portfolio and consistent dividends, appealing to conservative investors. Waaree Energies, with its focus on solar energy and innovation, presents higher growth potential but involves greater risk, making it suitable for growth-oriented investors seeking long-term returns.

Which Sectors Contribute Most To NTPC And Waaree Energies’s Revenue?

NTPC derives most of its revenue from thermal and renewable power generation, leveraging its diversified energy portfolio. Waaree Energies primarily generates revenue from solar module manufacturing and related renewable energy solutions, focusing on the rapidly growing solar energy sector to drive its business growth.

Which Stocks Are More Profitable, NTPC Green Energy Or Waaree Energies?

NTPC Green Energy benefits from its scale, government backing and diversified renewable energy projects, ensuring steady profitability. Waaree Energies, focusing on solar manufacturing, offers higher growth potential but with greater risk. NTPC Green Energy typically provides more consistent profitability, appealing to conservative investors, while Waaree suits growth-oriented strategies.

Disclaimer: The above article is written for educational purposes and the companies’ data mentioned in the article may change with respect to time The securities quoted are exemplary and are not recommendatory.

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