NTPC Green Energy shares: Brokerage starts coverage with 'Buy' on renewable growth outlook

HDFC Securities Ltd on Tuesday initiated coverage on NTPC Green Energy Ltd (NGEL) with a 'Buy' rating and a 12-month target price of Rs 121, citing strong growth visibility driven by the country's renewable energy push and robust backing from parent NTPC Ltd.

"We initiate coverage of NGEL with a BUY and a TP of Rs 121 at 14.5x EV/EBITDA FY29 EBIDTA discounted at 12 per cent to arrive at Mar-28 TP. NGEL is the renewable energy arm of NTPC, India's leading energy producer, with a strong presence in thermal energy," the brokerage stated.

"Through NGEL, NTPC plans to expand its existing renewable energy operating capacity from ~8GW as of Dec'25 to 60GW by FY32. As of December 2025, NGEL has a presence in nine states, through subsidiaries as well as JVs. NGEL's capacity addition plans, backed by NTPC's proven execution, position it to capture India's accelerating renewable energy demand," HDFC Securities added.

It underscored the company's alignment with national energy transition goals and strong parent support as key growth drivers. "Alignment with the government's 500GW RE plan target by FY30 provides a substantial growth runway, while a clear focus on profitable growth and disciplined capital allocation enhances NGEL's investment appeal. Strong parent support from NTPC — its vision, resources, and deep industry experience — helps de-risk execution," it also said.

The brokerage also mentioned NTPC Group's broader strategic roadmap, which strengthens NGEL's long-term outlook.

"NTPC Group's goal of 45-50 per cent non-fossil portfolio and 60GW RE by 2032 underpins NGEL's long-term pipeline visibility. Collectively, these factors position NGEL favourably for sustainable scaling creation of lasting shareholder value. NTPC, via NGEL, aims to build and diversify its expertise and capacity in new energy growth areas like Energy Storage Systems (ESS), Green Hydrogen, Electrolysers, and Green Ammonia production, which have seen wide industry participation in the form of capacity building and investment commitments in recent years, and are expected to contribute significantly to the Indian economy," HDFC Securities further stated.