NTPC Green Energy Ltd.
ISIN: INE0ONG01011 • Market Cap: ₹77,202 Cr
The 5-Pillar Quality Audit for NTPC Green Energy Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (87.1%), Return on Capital Employed (2.9%), and equity compounding (2.8%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 1.54 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (18.7%) and 3Y PAT CAGR (18.8%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 127.19 vs PEG of 5.39 and Dividend Yield of —.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 89.0%, backed by 6.9% institutional ownership.
Key Fundamental Strengths
Strong Topline Expansion (3Y Sales CAGR: 18.7%)
Revenue has expanded at 18.7% CAGR over 3 years, signaling industry market-share gains.
High-Velocity Profit Compounding (3Y PAT CAGR: 18.8%)
Net earnings have compounded at 18.8% annualized, demonstrating operating leverage.
Areas to Watch & Potential Risks
Subdued Capital Efficiency (ROCE: 2.9%)
A sub-12% ROCE suggests return on capital barely exceeds the company's weighted average cost of capital (WACC).
Elevated Financial Gearing (D/E: 1.54)
Debt-to-Equity exceeds 0.9x, meaning substantial operating earnings are absorbed by mandatory interest coverage.
Priced for Perfection (P/E: 127.19)
A steep valuation multiple of 127.19 leaves little margin for safety against quarterly earnings misses.
Quantitative Strategy Eligibility
Checking NTPCGREEN against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Fails 10%+ revenue growth or 15%+ minimum capital return benchmark over historical periods.
Quality Factor Screener (High RoIC + Low Debt)
Scorecard of 56/100 or leverage profile sits below strict quality index hurdles.
GARP / Value-Growth Blend
Valuation multiple or return metrics require further cyclical pullback.
Power Sector Peer Comparison
Compare NTPCGREEN directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| NTPC Green Energy Ltd. (NTPCGREEN)Current | 56/100 | ₹77,202 Cr | 127.19 | 2.9% | 1.54 | — |
| Adani Power Ltd. (ADANIPOWER) | 70/100 | ₹3.93 Lakh Cr | 27.56 | 15.7% | 0.82 | View |
| NTPC Ltd. (NTPC) | 69/100 | ₹3.25 Lakh Cr | 11.69 | 8.3% | 1.32 | View |
| Power Grid Corporation of India Ltd. (POWERGRID) | 64/100 | ₹2.44 Lakh Cr | 15.36 | 10.6% | 1.47 | View |
| Adani Green Energy Ltd. (ADANIGREEN) | 56/100 | ₹2.12 Lakh Cr | 119.11 | 8.3% | 5.24 | View |
| Adani Energy Solutions Ltd. (ADANIENSOL) | 66/100 | ₹1.88 Lakh Cr | 64.52 | 8.7% | 2.02 | View |
Frequently Asked Questions: NTPC Green Energy Ltd.
Q:What is the 5-Pillar Fundamental Score for NTPC Green Energy Ltd. (NTPCGREEN)?
NTPC Green Energy Ltd. has a RupeeTools Fundamental Score of 56/100, placing it in the 'Moderate / Average' category. Its pillar scores are: Profitability (53/100), Financial Health (48/100), Growth (86/100), Valuation (18/100), and Ownership Quality (72/100).
Q:Is NTPCGREEN fundamentally strong for long-term investment?
NTPCGREEN currently holds a moderate quality rating of 56/100. While it operates in the Power sector, investors should monitor its debt health before initiating long-term positions.
Q:Does NTPCGREEN pass the Coffee Can Investing filter?
No. NTPCGREEN does not currently meet the strict 15% ROCE and 10% sustained topline compounding threshold mandated by the Coffee Can investing framework.
Q:How does NTPCGREEN compare against other Power peers?
Within India's Power sector, NTPCGREEN trades at a P/E of 127.19 and generates an ROCE of 2.9%. Compare its 5-Pillar score of 56/100 against top sector peers like Adani Power Ltd. (70/100), NTPC Ltd. (69/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.