Best Green Hydrogen Stock in India: Since the Union Cabinet approved the National Green Hydrogen Mission in January of last year, India’s various giants, including Adani, Ambanis, and even PSUs, are competing for green hydrogen. The goal is to make the nation a major exporter and producer of green hydrogen.
We will examine the best green hydrogen stocks in India, which are anticipated to lead the industry in the future, in this article.
Best Green Hydrogen Stock in India
We will concentrate on the set of experiences and business of the organizations on our rundown. In addition, we will read briefly about their financial situation and their efforts to produce green hydrogen. The article is ended with a table that summarizes the top green hydrogen stocks in India and an overview.
Best Green Hydrogen Stock #1 In India – Dependence Enterprises
| cmp | ₹2,300 | Market Cap (Cr.) | ₹1,545,000 |
| eps | ₹94 | stock p/e | 24.3 |
| roce | 9.2% | ROE | 7.9% |
| promoter holding | 50.5% | book value | ₹1,168 |
| debt to equity | 0.40 | price to book value | 1.94 |
| net profit margin | 9.40% | operating profit margin | 15.80% |
Dhirubhai Ambani established Reliance Industries Limited (RIL) in 1958 as a polyester yarn and spice trading corporation.
Throughout the long term, the organization has changed under the initiative of Mukesh Ambani into a worldwide combination with financial matters in broadcast communications, retail, web based business, oil processing plant and showcasing, new energy, petrochemicals and others.
Over the course of the next ten to fifteen years, the company intends to make a significant investment totaling Rs 5.95 lakh crore in various green and new energy projects. It will also develop a green hydrogen ecosystem and construct 100GW renewable energy power plants as part of this.
RIL will also make it possible for small and medium-sized businesses (SMEs) and entrepreneurs to adopt new energy technologies for domestic use of green hydrogen and renewable energy.
As a result, the multinational corporation is collaborating with Denmark’s Stiesdal A/S to manufacture its HygroGen Electrolyzers in India. As a result, hydrogen production would become much more cost-effective than it currently is.
Revenue from Reliance Industries has increased from Rs 3,90,823 crore in FY18 to Rs 6,98,672 crore in FY22 over the past five years. During the same time period, its net profit nearly doubled to Rs 67,845 crore, up from Rs 36,080 earlier. It currently trades at a price-to-earnings ratio of 24.3 and has a significant debt-to-equity ratio of 0.40.
Best Green Hydrogen Stock #2 in India – GAIL
| cmp | ₹105 | Market Cap (Cr.) | ₹68,500 |
| eps | ₹12.8 | stock p/e | 8.2 |
| roce | 23.3% | ROE | 20.9% |
| promoter holding | 51.9% | book value | ₹100 |
| debt to equity | 0.22 | price to book value | 1.04 |
| net profit margin | 13.30% | operating profit margin | 16.30% |
GAIL (India) Limited, formerly known as the Gas Authority of India, was established in 1984 as a Central Public Sector Undertaking (CPSU) within the Ministry of Petroleum and Natural Gas of the Indian Government.
Gas Transmission & Marketing, Gas Exploration & Production, Petrochemicals, Renewables, City Gas Distribution, and other activities are carried out by GAIL. The company owns and operates 50% of the country’s CNG stations, including joint ventures, and 74% of all natural gas pipelines. In addition, it is in charge of more than half of the country’s natural gas sales.
In May of last year, it made the announcement that it would construct one of the largest PEM electrolyzers in India. With a purity of 99.99 volume percent, the facility will produce about 4.3 metric tons per day, or about 10 MW, of hydrogen. Additionally, it has begun incorporating hydrogen into the natural gas distribution system for cities.
GAIL is a profit stock with high profit yield of 6.36% and profit payout proportion above 30% for last three monetary years. Over the past five years, its revenue has increased at a CAGR of 11.23 percent to Rs 92,770 crore in FY2012. At an annual rate of 20.69%, its net profit more than doubled to Rs 12,304 crore during the same time period.
Best Green Hydrogen Stock #3 in India – Bharat Petroleum Corporation
| cmp | ₹350 | Market Cap (Cr.) | ₹76,000 |
| eps | -₹8.9 | stock p/e | No |
| roce | 15.6% | ROE | 20.4% |
| promoter holding | 53% | book value | ₹216 |
| debt to equity | 1.73 | price to book value | 1.66 |
| net profit margin | 3.11% | operating profit margin | 5.52% |
Bharat Petroleum Corporation Limited (BPCL) is a public sector oil marketing company with numerous business interests in a variety of industries, including fuel stations, lubricants, aviation fuel, refineries, and LPG cylinder gas for domestic and commercial use.
It is thought to have started at the end of the 19th century. When Burma Shell, as it was previously known, was taken over by the government, it was nationalized in 1976 and placed under the control of the Ministry of Petroleum and Natural Gas, Government of India.
The company’s management recently announced the establishment of a 20 MW green hydrogen unit in Madhya Pradesh. The captive power requirements of the PSU will be met by this facility, which will be India’s largest ever.
Six to eight businesses have expressed an interest in the project, which is anticipated to be completed within two years.
The central government recently made the decision to halt BPCL’s plan to privatize. To achieve its disinvestment goals, it had attempted to solicit bids from interested buyers for the past two years.
The stock’s Trailing Twelve Months (TTM) Earnings per Share were negative at Rs 8.9. As a result of rising energy costs brought on by the war between Russia and Ukraine, OMC’s bottom line has been in the red for the past few quarters. However, the situation is expected to improve as the fall in crude oil prices eases margin pressure.
Best Green Hydrogen Stock #4 in India – Larsen & Toubro
| cmp | ₹2,200 | Market Cap (Cr.) | ₹310,000 |
| eps | ₹71.9 | stock p/e | 30.7 |
| roce | 11.0% | ROE | 10.2% |
| promoter holding | 0.0% | book value | ₹582 |
| debt to equity | 1.58 | price to book value | 3.77 |
| net profit margin | 6.28% | operating profit margin | 15.50% |
Larsen & Toubro (L&T) Limited is an international, diverse Indian conglomerate. Engineering, infrastructure and construction, manufacturing, information technology, and financial services are just a few of the many sectors in which it operates.
A green hydrogen plant was put into operation in August of last year at one of the company’s Gujarat facilities. It has a capacity of 800 kW and measures 3,000 square meters in size. It was built to produce green hydrogen and oxygen. These will be utilized as fuel in hostage cutting and welding exercises in the wake of mixing with petroleum gas to 15% hydrogen.
In addition, this year, L&T and McAfee Energy of France agreed to produce and improve its Pressurized Alkaline Electrolyzer technology in India under license for domestic and international applications.
With sales of Rs 1,56,521 crore in FY22, the diversified giant reported a net profit of Rs 10,419 crore. The company’s stock currently has a price-to-earnings ratio of 31 and has given its shareholders a sizable profit of 24%.
Best Green Hydrogen Stock #5 in India – India Oil Corporation
| cmp | ₹80 | Market Cap (Cr.) | ₹112,000 |
| eps | ₹4.4 | stock p/e | 15.0 |
| roce | 15.6% | ROE | 20.4% |
| promoter holding | 51.5% | book value | ₹90 |
| debt to equity | 1.26 | price to book value | 0.88 |
| net profit margin | 4.36% | operating profit margin | 7.91% |
Indian Oil Organization Restricted (IOCL) is a Focal Public Area Undertaking (CPSU) under the Service of Petrol and Flammable gas, Legislature of India. It was established in 1959, more than six decades ago.
The entire petroleum industry value chain is covered by the Company’s operations at the present time: petroleum product marketing, pipeline transportation, refinement, exploration, and production of crude oil, natural gas, and petrochemicals.
IOCL, L&T, and ReNew recently formed a joint venture (JV) in India to investigate and develop green hydrogen technology. L&T and IOCL have also established a joint venture to produce and market electrolyzers for the production of green hydrogen.
Additionally, the petroleum company announced in February of this year that it would construct eco-friendly hydrogen plants at each of its refineries. This is consistent with its bold plan to eliminate all emissions by 2046.
At its refinery in Mathura, IOCL built the nation’s most environmentally friendly hydrogen plant as a marketing gimmick. At its oil refinery in Panipat, it will now establish a Rs 2,000 crore green hydrogen manufacturing facility. It is anticipated that it will be operational by 2025 and will have a capacity of 7,000 tonnes per year.
With a high dividend yield of 10.7%, Indian Oil Limited is a dividend stock. Over the past ten fiscal years, it has paid dividends continuously.
list of Best green hydrogen stock in india
The below table lists all the best green hydrogen stocks in India together.
| company’s name | CMP (Rs.) | Market Cap (Rs Crore) |
|---|---|---|
| Reliance Industries | 2,200 | 1,490,000 |
| Gayle | 105 | 68,500 |
| BPCL | 350 | 76,000 |
| larsen and toubro | 2,200 | 310,000 |
| Indian Oil Corporation | 80 | 112,000 |
| ONGC | 152 | 190,000 |
| Jindal Stainless | 290 | 15,000 |
| NTPC | 174 | 168,500 |
| JSW Energy | 240 | 39,500 |
| Adani Green Energy | 1,000 | 160,000 |
Bonus: Adani Enterprises
The Adani Group, led by Gautam Adani, had previously announced a significant investment of $50 billion in green hydrogen and associated ecosystems with a capacity of 3 million tonnes of green hydrogen annually over the course of the next ten years.
Adani New Industries Limited (ANIL), a subsidiary of Adani Enterprises Limited, is anticipated to make the majority of this investment.
However, TotalEnergies, a French energy conglomerate, has put off investing in the green hydrogen venture of the group. It has been a significant partner in a number of the group’s other businesses.
The Adani group was accused of using leverage and fraud by Hindenburg Research, which is based in New York. The timetable for Adani’s green hydrogen projects may be affected by this.
in conclusion
The green hydrogen industry in India is still in its infancy despite all of these developments. By 2030, the draft National Hydrogen Mission Guidelines predict that the total demand for hydrogen will reach 12 MMT, of which 5 MMT—40 percent—will be green. Furthermore, it is anticipated that the proportion of green hydrogen will reach 80 percent by 2050.
Which one of these stocks, in your opinion, is in the best position to ride the Indian green hydrogen wave? In the comments section below, would you mind sharing your thoughts on this industry and these businesses?
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Vikalp Mishra is a commerce graduate from University of Delhi. He loves writing on finance, money and business. He is a voracious reader and has a genuine interest in investing. Mail him at vikalp.mishra@tradebrains.in.
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