Last Updated on Oct 30, 2024 by Vanessa Sequeira
India has set its sights on becoming energy-independent by 2047 and achieving Net Zero by 2070. To achieve these ambitious goals, the country is increasingly turning to green hydrogen energy. This clean, sustainable fuel source is poised to play a pivotal role in India’s energy landscape. In this blog, we’ll delve into the world of green hydrogen and explore why investing in green hydrogen stocks is not just a financial opportunity but also a way to support India’s journey toward a greener and more sustainable future.
In this article, let’s explore the best green hydrogen stocks in India, factors to consider before investing, challenges in the industry, how to invest in green hydrogen companies in India, and more.
Table of Contents
Best Green Hydrogen Stocks in India 2024
| Name | Sub-Sector | Market Cap (Rs. in cr.) | Close Price (Rs.) | PE Ratio | 5Y Average Return on Investment (%) | Debt to Equity (%) | Fundamental Score |
| Oil and Natural Gas Corporation Ltd | Oil & Gas – Exploration & Production | 3,33,377.40 | 261.65 | 7.49 | 9 | 0.42 | 11 |
| CESC Ltd | Power Generation | 24,169.13 | 183.19 | 17.56 | 10.6 | 1.21 | 9.25 |
| Adani Green Energy Ltd | Renewable Energy | 2,59,005.15 | 1,634.20 | 235.46 | 6.64 | 3.72 | 6.83 |
| Reliance Industries Ltd | Oil & Gas – Refining & Marketing | 18,13,337.97 | 1,343.90 | 26.05 | 6.74 | 0.5 | 6.71 |
| Adani Power Ltd | Power Generation | 2,28,446.49 | 592.05 | 10.97 | 15.72 | 0.79 | 6.69 |
| NTPC Ltd | Power Generation | 3,99,648.09 | 408.5 | 19.2 | 7.28 | 1.44 | 5.11 |
| Gail (India) Ltd | Gas Distribution | 1,34,868.03 | 203.73 | 13.62 | 12.5 | 0.28 | 4.25 |
| Bharat Petroleum Corporation Ltd | Oil & Gas – Refining & Marketing | 1,35,122.75 | 377.65 | 5.16 | 12.66 | 0.72 | 3.65 |
| Indian Oil Corporation Ltd | Oil & Gas – Refining & Marketing | 1,98,475.73 | 143.4 | 4.76 | 9.15 | 0.7 | 3.57 |
| Adani Total Gas Ltd | Gas Distribution | 78,185.50 | 713.55 | 117.13 | 18.27 | 0.43 | 3.42 |
Note: The list of the best Green Hydrogen stocks is sorted on the Tickertape Stock Screener, and the data is from 30th October 2024. We have used the following parameters:
- Fundamental Score: Sorted from high to low
- 5Y Avg Return on Investment
🚀 Pro Tip: You can use Tickertape’s Stock Screener to research and evaluate stocks with over 200+ filters and parameters.
Introducing ‘Green Hydrogen’ Stock Portfolios Managed by SEBI Experts
Did you know you can invest in green hydrogen stocks with smallcase managed by SEBI-registered investment professionals?
What is smallcase?
smallcases are modern investment products that help investors easily build a low-cost, long-term & diversified portfolio. They are pre-designed portfolios that reflect a specific theme, strategy or objective. A smallcase is created and managed by SEBI-registered investment professionals (also known as smallcase managers).
Among 500+ smallcases, here are some of the top green hydrogen smallcases.
Note: These smallcases are mentioned only for educational purposes and are not meant to be recommendatory. Investors must conduct their own research and consult a financial expert before making any investment decisions.
Disclosures for Green Energy smallcase
Disclosures for Electric Mobility smallcase
Details of Top Green Hydrogen Stocks in India
Oil and Natural Gas Corporation Ltd
Established in 1956, ONGC is India’s largest oil and gas exploration company, extracting crude oil and natural gas from onshore and offshore fields. With a debt-to-equity ratio of 48.95% close to the industry average and a net profit margin of 8.12%, ONGC has a solid foundation as it pivots toward sustainable initiatives. As part of India’s green hydrogen share list, ONGC is of interest to investors tracking green hydrogen stocks and shares in India.
CESC Ltd
CESC is a prominent electricity generation and distribution company primarily serving Kolkata, with potential to diversify into renewable energy sources like green hydrogen. With expected earnings growth of 17.12%, surpassing its 3-year CAGR of 1.12%, and a net profit margin of 7.96%, CESC is well-poised for future growth. This utility could attract those interested in the green hydrogen share list in India as hydrogen adoption increases.
Adani Green Energy Ltd
dani Green, focused on renewable power, is one of the best green hydrogen stocks with ambitions to lead India’s renewable transformation. Its projected return of 38.06% and robust 5-year revenue growth of 38.22%, compared to the industry average of 11.03%, underline its growth potential. Positioned high on the green hydrogen share list, Adani Green is popular among hydrogen shares in India.
Reliance Industries Ltd
Reliance Industries spans telecommunications, refining, and energy and has ambitious plans in green hydrogen and electrolyser stocks in India. Its annual revenue growth rate of 9.69% slightly outpaces the industry, and a debt-to-equity ratio of 50.37% indicates balanced leverage. As one of the best green hydrogen shares, Reliance is essential to India’s hydrogen strategy.
Adani Power Ltd
Adani Power, primarily a thermal power producer, is transitioning to renewables, including green hydrogen. With an impressive net profit margin of 34.55% and ROE of 56.77%, the company remains strong financially and could grow as a green hydrogen stocks contender in India.
NTPC Ltd
NTPC is India’s largest power producer, increasingly investing in green hydrogen. With a debt-to-equity ratio of 154.3%, slightly below industry averages, and a net profit margin of 11.32%, NTPC is financially positioned to support hydrogen shares, ranking it well among electrolyser stocks in India.
Gail (India) Ltd
India’s leading gas company, Gail has significant potential in green hydrogen projects due to its infrastructure. It holds a net profit margin of 7.28% and ROE of 13.91%, making it an appealing option on India’s green hydrogen share list.
Bharat Petroleum Corporation Ltd
BPCL is a major player in oil and gas with growing involvement in green hydrogen shares. With a 5-year net income growth of 28.05%, surpassing industry averages, and an ROE of 41.59%, BPCL is appealing for those focused on the best green hydrogen shares in India.
Indian Oil Corporation Ltd
IOCL, India’s largest state-owned oil company, is exploring green hydrogen projects. With net income growth of 19.15% annually, outpacing the industry, and an ROE of 25.19%, IOCL is a strong candidate among green hydrogen stocks in India.
Adani Total Gas Ltd
Adani Total Gas is a major natural gas distributor, expanding into green hydrogen. With revenue growth of 20.23% and net income growth of 23.89% over the past five years, this company is a standout in the hydrogen share list, appealing to those interested in the hydrogen economy.
What is Green Hydrogen?
Green hydrogen, produced through the electrolysis of water using renewable energy sources like solar or wind power, is distinct in terms of minimal environmental footprint. The clean energy carrier is indispensable in places where electrification is difficult and thus forms a cornerstone in India’s energy transition. As more companies working on green hydrogen in India innovate, green hydrogen is likely to play a pivotal role in sustainable energy.
Future of Green Hydrogen Energy in India
India aims to achieve carbon neutrality by 2070, but as its economy grows, its demand for energy and resources is expected to rise. Energy demand has already doubled over the past two decades, and it is projected to increase by at least 25% by 2030.
Currently, more than 40% of India’s primary energy needs, costing over $90 billion annually, are met through imports. Additionally, industries like transportation and manufacturing rely heavily on imported fossil fuels. New technology, such as hydrogen solar panel companies in India, is critical to increasing the use of renewables in the energy mix and gradually reducing dependence on fossil fuels.
National Green Hydrogen Mission-one of the Budget 2023-2024 highlights. The Government of India sanctioned Rs. 19,744 cr. towards the mission and plans to increase its annual green hydrogen production to 5 mn tonnes by 2030. The Government also plans to reduce dependence on fossil fuel imports and cut greenhouse gas emissions by nearly 50 mn tonnes. The eventual goal is to turn the country into a hub for green hydrogen production to meet global renewable energy demands.
Green hydrogen will considerably reduce carbon emissions from heavy industry and transportation. It provides a fossil-based fuel alternative that will help humankind globally reduce its carbon footprint upon adherence to sustainable development objectives.
Factors to Consider Before Investing in Green Hydrogen Energy Stocks in India
Growth Prospect
The Government of India is constantly trying to save the environment by replacing fossil fuels with green hydrogen under several missions. And green hydrogen energy is considered a viable and sustainable alternative energy resource. Moreover, the interim budget for 2024-2025 allocated Rs. 600 cr. for the National Green Hydrogen Mission India. Such commitments showcase the potential growth for green hydrogen stocks in India, making green hydrogen share price an essential metric for investors.
Evergreen Stocks
While the Government is promoting green hydrogen in India, the companies that invest in green hydrogen production are evergreen. Further, there has been a proliferation of energy-efficient appliances, including solar water heaters, wind turbines, geothermal heat pump systems, hydropower, and others. Such companies, including those focused on hydrogen solar panels in India, are expected to stay in demand.
ESG Investing
As a result of the rising demand for sustainable living and investing, Environmental, Social, and Governance (ESG) investing is rising. Investors lean toward companies that make a conscious effort to save the environment, such as green hydrogen companies in India.
Profits are in the Future
Investors in green hydrogen penny stocks in India or those following green hydrogen stocks screeners will find that these stocks hold future profit potential. As always, investors should conduct independent research or consult financial advisors to make informed investment decisions.
Technological Advancement
Companies involved in green hydrogen often invest in advanced technologies like electrolysis techniques to enhance the production process. These innovations reflect the dedication of hydrogen fuel companies in India that will drive growth in the green hydrogen sector.
Though the hydrogen fuel stocks in India look attractive, it is wise to make a decision based on one’s current financial situation, future financial goals/plans, and the advice of a financial advisor.
Features of Green Hydrogen Stocks
Here are 5 key features of green hydrogen stocks in India:
- Renewable Production Methods: Green hydrogen stocks in India stand out due to their commitment to environmentally friendly production methods. For investors interested in the top 10 green hydrogen penny stocks in India, these renewable methods signify long-term sustainability.
- Carbon Neutrality: A defining feature of green hydrogen stocks is their dedication to carbon neutrality. Companies in this sector aim to minimise or completely offset their carbon footprint, contributing to global efforts to combat climate change and making them a sustainable investment choice.
- Technological Innovation: Green hydrogen stocks in India prioritise cutting-edge technologies. They invest in advanced electrolysis techniques, efficient storage solutions, and scalable production methods, which positions them as leaders in hydrogen energy stocks in India.
- Strategic Partnerships: Successful players in the Indian green hydrogen sector often forge strategic partnerships with energy companies, governments, and technology providers. These collaborations enhance the scalability and viability of green hydrogen initiatives, creating opportunities for growth and profitability.
- Policy and Regulatory Environment: The regulatory landscape significantly impacts the green hydrogen energy stocks in India. Investors need to be aware of supportive policies, subsidies, and regulatory frameworks like the green hydrogen policy in India as they can influence the long-term viability and growth potential of green hydrogen-related stocks in India’s evolving energy market.
Benefits of Investing in Green Hydrogen Stocks
There are various advantages to investing in green hydrogen stocks. Here are 5 key benefits:
- A Greener Future: By investing in green hydrogen stocks, you support a cleaner future. It’s like putting your money where your values are, helping reduce pollution and combat climate change. Green hydrogen stocks in India screener tools can assist in identifying companies that lead in sustainability efforts.
- Potential for Long-term Gains: Imagine planting a tree today that could grow into a thriving forest tomorrow. Investing in green hydrogen stocks offers the potential for long-term growth as the world increasingly embraces cleaner energy solutions.
- Diversify and Protect: Just like having a variety of fruits in your basket, adding green hydrogen stocks to your investment portfolio can diversify your holdings and reduce risk. By investing in various energy sources, like hydrogen energy stocks in India, you can spread your bets and strengthen your portfolio against market fluctuations.
- Riding the Energy Transition Wave: Picture catching a wave at the right moment. Investing in the best green hydrogen stocks in India lets you ride the wave of the global shift towards cleaner energy sources, potentially riding it to financial success.
- Joining the Clean Energy Movement: When you invest in green hydrogen producing companies in India stocks, you’re not just chasing profits; you’re participating in a movement to create a better, more sustainable world. It’s an investment that aligns with your values and contributes to a positive impact on the environment.
How to Identify Green Hydrogen Stocks in India?
If you are interested in identifying green hydrogen stocks in India, here are some key steps that might help you in your evaluation:
- Focus on Companies Involved in Green Hydrogen Production: You might want to start by identifying green hydrogen companies in India that are actively involved in producing hydrogen using renewable energy. Companies dedicated to this area may have a significant advantage as the demand for clean energy grows.
- Look for Technological Innovators: Consider companies that are at the forefront of hydrogen technology, such as those developing hydrogen fuel cells or integrating hydrogen with solar energy. Exploring hydrogen fuel cell stocks and hydrogen solar panel companies in India could give you insights into leaders in this innovative space.
- Explore Green Ammonia Stocks: Green ammonia is closely related to green hydrogen. You might want to research green ammonia stocks in India, including green ammonia listed companies in India, as these companies are likely to play a vital role in the hydrogen economy.
- Evaluate Financial Health: It might be important to assess the financial stability of companies involved in green hydrogen. You can look at metrics such as revenue growth, debt levels, and profitability to gauge their ability to sustain and grow in this emerging market.
- Consider Green Hydrogen Penny Stocks: If you are open to higher risk, you might explore green hydrogen penny stocks in India. These stocks, especially green hydrogen penny stocks below 1 rupee, could offer significant upside potential but come with greater volatility.
- Check Integration with Renewable Energy: Companies that integrate hydrogen production with renewable energy, such as solar or wind, may have a competitive edge. These firms are often better positioned to produce green hydrogen sustainably and cost-effectively.
- Monitor Hydrogen Share Prices: Keeping an eye on hydrogen share price can help you track market trends and identify potential investment opportunities. Consistent price growth might indicate a company’s stability and market confidence.
By following these steps, you may be able to identify promising green hydrogen stocks in India that align with your investment strategy. This approach could help you capitalise on the growing importance of green hydrogen in India in the global energy landscape.
Challenges in the Green Hydrogen Industry in India
- Technological and Infrastructural Challenges: India’s lack of technological advancement and infrastructure is the real constraint on large-scale production and distribution of green hydrogen. Building such infrastructure can create opportunities for the sector to flourish.
- Economic and Regulatory Constraints: The second challenge arises from the overly high setup costs of green hydrogen plants and supportive regulatory frameworks. Nonetheless, these can also be turned into opportunities if the right economic policies and regulatory support are put in place.
How to Invest in Green Hydrogen Stocks in India?
A diversified investment approach in the green hydrogen sector can be a wise decision. Investment in both established companies and emerging startups may prove helpful in balancing the risk-reward ratio. It would also remain a prudent step if they continuously stay vigilant about the market trends and Government policies so as to make timely decisions based on proper assessment of such information. It is always worthwhile to consult a financial advisor before making any investment decision for your portfolio.
To list the best stocks in the green hydrogen sector on Tickertape, follow the below-mentioned steps.
Step 1: Go to the Stock Screener.
Step 2: Click on ‘+ Create’ in ‘Stock Universe’.
Step 3: Add all the stocks mentioned in the articles and more which are related to the green hydrogen sector.
Step 4: Add over 200 filters to sort the stocks based on your preference.
Conclusion
The green hydrogen energy sector seems promising for the long term. However, consider the uncertainty and future promise of profits before investing in these stocks. It is always worthwhile to take the help of a financial advisor and do your own research as well. Tickertape Stock Screener can help you keep track of all the green hydrogen energy stocks. You can add all the stocks you want to track to your watchlist. Alternatively, you can add them to a ‘Stock Universe’ and keep them separate from the other stocks you track. Try it now!
Frequently Asked Questions on Green Hydrogen Stocks
What is the best hydrogen stock to invest in?
As of 30th October 2024, the top 5 green hydrogen energy stocks based on the Fundamental score are:
– Oil and Natural Gas Corporation Ltd
– CESC Ltd
– Adani Green Energy Ltd
– Reliance Industries Ltd
– Adani Power Ltd
A fundamental score is a smallcase proprietary score between 1 and 10, which is assigned to stocks listed on the NSE. The score helps rank the stock versus all other stocks in the respective sector. The higher the score, the better the company.
Note: This information is provided for educational purposes and is not intended as a recommendation or endorsement.
Who is the largest producer of green hydrogen?
According to the World Economic Forum, China consumes and produces more hydrogen than any other country – its current annual usage is more than 24 mn tonnes. More than 30 projects involving “green” hydrogen – created using emissions-free renewable energy – have been set up since 2019 in the country.
How much is the demand for green hydrogen in India?
More than 6 mn tonnes of hydrogen is used by India every year to produce ammonia and methanol for industrial purposes. It is assumed that India’s demand for hydrogen will increase five-fold, and consumption of hydrogen is expected to surge by 28 mn tonnes by 2050.
What is green hydrogen used for?
Green hydrogen is mainly used in the chemical industry to manufacture ammonia and fertilisers. It is also used in the petrochemical industry to produce petroleum products.
How is green hydrogen made?
Hydrogen produced by splitting water by electrolysis is green hydrogen. This process only produces hydrogen and oxygen. Green hydrogen can be utilised, and the oxygen can be vented into the atmosphere without any negative impact.
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As an insatiable reader and learner, I’ve spent the last two years exploring the world of finance. With my creative mind and curious spirit, I love making complex finance topics easy and fun for everyone to understand. Join me on my journey as we navigate the world of finance together!
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