NTPC Green Energy Ltd. (NSE: NTPCGREEN) has been making waves in India’s renewable energy market, but investors may want to approach its stock with caution in the coming months. The company’s shares have been on a volatile ride, trading between ₹84.55 and ₹155.35 in the past year. As of April 3, 2025, NTPC Green Energy shares were priced at ₹100.03, showing a modest increase of 1.52% from the previous close.
Analyst Sentiment: Cautious Outlook
Despite the company’s potential in the growing renewable energy sector, analysts are taking a more reserved approach toward NTPC Green Energy’s stock. The consensus among two major analysts is an “Underperform” rating. The average target price set for the stock is ₹91.50, which suggests a downside of about 3.73% from its current price. This indicates that analysts believe the stock could face challenges in the short term.
Strong Profits, But Declining Margins
NTPC Green Energy recently reported impressive profits, with a 52.3% year-on-year increase in net profit for the third quarter of the fiscal year. The company posted a net profit of ₹89.4 crore, signaling strong growth. However, its EBITDA margins, a key indicator of profitability, contracted to 83.5% from 88.9% in the previous year. This decline in margins has raised concerns among some investors about the sustainability of its growth.
Technical Indicators: Support and Resistance Levels
From a technical perspective, NTPC Green Energy’s stock is seeing some support around ₹97, while resistance is currently near ₹105. If the stock manages to close above ₹105 on a daily basis, analysts believe it could potentially hit a target of ₹120 in the short term. Investors will want to keep an eye on these price points as a potential breakout or breakdown could signal important shifts in market sentiment.
IPO and Future Outlook
It’s also worth noting that NTPC Green Energy launched its initial public offering (IPO) in November 2024, with a price range of ₹102 to ₹108 per share. The company aimed to raise ₹1,000 crore through the IPO to help fund its renewable energy projects and reduce its debt. Despite the promising outlook of the renewable energy sector, NTPC Green Energy faces several hurdles, including rising operational costs and competition in the market.
What Should Investors Do?
With mixed analyst opinions and market fluctuations, investors may want to proceed with caution. While NTPC Green Energy offers significant potential in India’s growing renewable energy sector, its stock faces short-term headwinds. Before making any investment decisions, it’s essential for investors to do their own research and assess both the potential risks and rewards.
