Best Green Hydrogen Stocks in India

Best Green Hydrogen Stocks in India 2024 as per Analyst Ratings

The following table represents the best green hydrogen stocks in India in 2024 as per analyst rating. We have chosen analyst rating as a criterion here as analysts run a comprehensive market study before rating a stock-

*Our stock selection criteria for top stocks based on analyst ratings are mentioned at the bottom of this blog.

Top Green Hydrogen Stocks in India in 2024 as per Market Capitalisation

The following table provides a list of top green hydrogen companies stocks in India as per market capitalisation:

*Our stock selection criteria for top stocks based on Market Capitalisation are mentioned at the bottom of this blog.

Overview of Best Green Hydrogen Stocks in India as per Analyst Ratings

The following provides a brief overview of the green hydrogen stocks listed above as per analyst ratings:

1) National Thermal Power Corporation (NTPC)

National Thermal Power Corporation (NTPC) is one of India’s leading power-generating companies in India that was founded in 1975. It primarily generates and sells bulk power to the State Power Utilities of India.

The company has a capacity of over 75,000 MW, which plays a vital role in driving India's economic advancement. Its installed capacity comprises 27 coal-based stations, 15 solar PV projects, 7 gas-based stations, 1 hydro station and 1 small hydro station. 

Additionally, it provides e-mobility solutions, consultancy services, project management, and supervision. By 2032, the company aims to become India's largest integrated power company, with an installed capacity surpassing 130 GW. It targets achieving this by diversifying its fuel mix and increasing its generation capacity to 600 billion units.

2) Larsen & Toubro

Headquartered in Mumbai, Larsen & Toubro Limited stands as one of India's largest multinational companies, involved in hi-tech manufacturing, engineering, procurement and construction (EPC) projects and services.

The company offers a wide range of services, including hydraulics, hydrocarbon, rubber processing machinery, shipbuilding and valves. Additionally, it manufactures and distributes construction and mining equipment, as well as products for electricity distribution and control. 

L&T also provides various finance-related services such as wholesale finance, rural finance, housing finance, general insurance, infrastructure finance and related advisory services. It operates in more than 50 countries globally. Its strong focus on customers and continuous pursuit of top-quality standards have enabled it to achieve and maintain leadership in its key business areas for over 8 decades.

3) Reliance Industries

Reliance Industries is one of India's largest manufacturers of green hydrogen. The company's green hydrogen is used for domestic consumption and global sales, contributing significantly to reducing carbon emissions. Moreover, this company uses both green hydrogen and CO2 as raw materials to create a plan for developing new green chemicals, fertilisers, and e-fuels. 

Furthermore, Reliance Industries plans to leverage its solar and wind energy storage to enable large-scale production of green hydrogen. The company plans to invest a significant ₹75,000 crore in green hydrogen production over the next couple of years.

They are currently setting up a 1 GW green hydrogen facility in Jamnagar, Gujarat, aiming to make it operational by 2025. 

4) Oil & Natural Gas Corporation (ONGC)

ONGC, a Maharatna company, stands as India's largest producer of crude oil and natural gas, contributing approximately 71% to the country's domestic production.

The company focuses on exploring, developing and producing crude oil, natural gas and value-added products within India. Furthermore, it engages in downstream activities such as refining and marketing petroleum products, as well as ventures into petrochemicals, power generation, LNG supply, pipeline transportation, SEZ development and helicopter services. 

Geographically, its operations span across India, both offshore and onshore, as well as outside India. ONGC aims to elevate its share in India's hydrocarbon consumption from the current 22% to 27% by 2030. Moreover, ONGC has set a target to double its oil and gas production from both domestic and overseas fields by the year 2040.

5) GAIL (India)

Established in 1984, GAIL (India) Limited was formed as a Central Public Sector Undertaking (PSU) under the Ministry of Petroleum & Natural Gas (MoP&NG).

It operates in various segments, including transmission services, natural gas marketing, petrochemicals, LPG and liquid hydrocarbons and other segments. The transmission services segment deals with natural gas and liquid petroleum gas (LPG). 

On the other hand, the other segment includes GAIL Tel, City Gas Distribution (CGD), power generation, exploration and production (E&P). Moreover, GAIL engages in sourcing and trading natural gas, producing LPG, liquid hydrocarbons, and petrochemicals, as well as transmitting natural gas and LPG through pipelines. Additionally, it is expanding its presence in renewable energy sectors such as solar, wind and biofuel.

Factors to Consider Before Investing in Green Hydrogen Stocks in India

Before you invest in green hydrogen companies in India, consider these key factors:

• Government Policies and Incentives

Before investing in green hydrogen stocks in India, you should monitor government policies related to renewable energy, including the National Green Hydrogen Projects. You should also consider potential incentives and subsidies available to green hydrogen companies.

• Technological Advancement

Companies involved in green hydrogen often invest in advanced technologies, including cutting-edge electrolysis techniques, effective storage solutions and scalable production methods. These innovations reflect the commitment of hydrogen fuel companies in India to drive progress within the green hydrogen sector.

• Market Demand and Growth Potential 

Considering the market demand for green hydrogen stocks in India and their growth potential is crucial. Therefore, you should research the potential demand for green hydrogen and assess the long-term prospects of green hydrogen companies in the country.

• Financial Performance

Assessing the financial performance of green hydrogen companies in India is vital before you invest. So, make sure to examine the company's financial statements, including revenue growth, profit margins and cash flow to make a well-informed decision.

Should You Invest in Green Hydrogen Stocks?

When considering investing in green hydrogen stocks, it is essential to understand the challenges ahead in the industry. There are concerns about the high costs associated with producing green hydrogen due to the technology involved in the electrolysis process. However, advancements in technology and increasing demand are expected to drive cost reductions over time, making it more affordable. 

On the other hand, the infrastructure for storing, transporting and distributing green hydrogen remains underdeveloped. This gap presents an investment opportunity, potentially leading to job creation and economic growth. Despite competition from cheaper fossil fuels, increasing awareness of their environmental impact may increase the demand for green hydrogen in the long run.

Therefore, before considering investment in green hydrogen stocks, conducting comprehensive research and staying updated with industry developments is crucial.

The Bottom Line 

The green hydrogen stocks in India offer a promising opportunity for you if you want to align your investment portfolios with sustainable and eco-friendly ventures.

While the sector faces challenges such as high production costs and infrastructure limitations, it is positioned for substantial growth driven by technological advancements and increasing demand.

By staying informed and conducting thorough research, you can seize the opportunities presented by the evolving green hydrogen industry while contributing to India's transition to cleaner energy sources.