NTPC Green Energy Ltd Hits All-Time Low Amidst Continued Underperformance

Stock Performance Overview

The stock’s recent decline is marked by a 1.96% drop on 2 Feb 2026, significantly underperforming the Sensex which fell by only 0.13% on the same day. Over the past week, NTPC Green Energy Ltd has declined by 6.29%, compared to the Sensex’s 1.13% fall. The downward trend extends over longer periods with a 12.86% loss in the last month and a 17.99% decrease over three months, while the Sensex gained 4.01% over the past year, the stock has fallen 26.18%. Year-to-date, the stock is down 10.54%, underperforming the Sensex’s 5.41% decline.

The stock is trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — indicating a persistent bearish momentum. It has also underperformed the BSE500 index over the last three years, one year, and three months, signalling challenges in both short and long-term performance.

Financial Metrics and Profitability

NTPC Green Energy Ltd’s financial indicators reveal pressures on profitability and valuation. The company’s Return on Equity (ROE) averages at a modest 3.24%, indicating limited profitability generated from shareholders’ funds. Its Return on Capital Employed (ROCE) stands at 3.1%, which, when combined with an enterprise value to capital employed ratio of 2.3, suggests a relatively expensive valuation given the returns generated.

Debt servicing capacity remains a concern, with a high Debt to EBITDA ratio of 10.18 times, reflecting a significant leverage burden. Interest expenses have reached a quarterly high of ₹230.06 crores, further weighing on earnings. The Profit After Tax (PAT) for the quarter ended December 2025 was ₹17.48 crores, representing a steep decline of 88.5% compared to the previous four-quarter average. Profit Before Tax excluding other income (PBT less OI) also hit a low of ₹5.74 crores in the same period.

Sector Position and Market Capitalisation

With a market capitalisation of ₹72,736 crores, NTPC Green Energy Ltd is the second largest company in the power sector, trailing only Waaree Energies. It accounts for 24.61% of the sector’s total market cap. The company’s annual sales of ₹2,568.06 crores represent 4.69% of the industry’s total sales, underscoring its significant presence within the power sector.

Growth Trends and Sales Performance

Despite the stock’s price decline and profitability pressures, the company has demonstrated robust growth in net sales and operating profit. Net sales have increased at an annual rate of 245.20%, while operating profit has grown by 219.27% over the same period. This growth, however, has not translated into commensurate returns for shareholders, as reflected in the stock’s performance and financial ratios.

Shareholding and Ratings

The majority shareholding remains with promoters, maintaining control over the company’s strategic direction. The company’s MarketsMOJO Mojo Score currently stands at 30.0, with a Mojo Grade of Sell, downgraded from Hold on 3 Nov 2025. The market cap grade is rated at 2, indicating a relatively lower standing in terms of market capitalisation quality.

Comparative Sector and Market Performance

NTPC Green Energy Ltd’s underperformance is evident when compared to sector and market benchmarks. The stock has lagged behind the power sector’s average returns by 1.66% on the day of the latest decline and has consistently underperformed the Sensex across multiple time frames. Over the past five and ten years, the stock has shown no appreciable returns, contrasting sharply with the Sensex’s gains of 61.88% and 228.51% respectively.

Summary of Current Situation

NTPC Green Energy Ltd’s stock has reached an all-time low amid a backdrop of subdued profitability, high leverage, and persistent underperformance relative to market indices and sector peers. While the company maintains a significant market presence and has recorded strong sales growth, these factors have not yet translated into improved shareholder returns or financial stability as reflected in key metrics such as ROE, ROCE, and debt ratios.

The recent downgrade in Mojo Grade from Hold to Sell and the low Mojo Score of 30.0 further highlight the challenges faced by the company in the current market environment. The stock’s valuation appears stretched relative to its capital employed and earnings generation, contributing to the downward pressure on its price.

Investors and market participants will continue to monitor the company’s financial disclosures and market movements closely as NTPC Green Energy Ltd navigates this phase of its performance trajectory.

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