Popular Green Hydrogen Stocks

Green hydrogen stocks refer to shares of companies involved in producing, storing, or distributing green hydrogen, which is hydrogen produced using renewable energy sources like wind, solar, or hydroelectric power.
Popular Green Hydrogen Stocks
3 mins read
29-October-2024

As India transitions towards net-zero carbon emissions, the demand for clean and sustainable energy is on the rise. Hence, investing in green hydrogen stocks could be a wise decision, as these stocks are gaining momentum in the market.

Publicly traded companies that distribute, produce, or utilise hydrogen generated from renewable energy sources are the focus of investors looking for sustainable and clean energy solutions. These companies are leading the way in reducing carbon emissions and promoting a cleaner environment. The future of energy lies in green hydrogen, and as industries shift towards sustainable practices, investing in these companies could be a smart move.

As the demand for clean energy solutions continues to grow, green hydrogen stocks are likely to witness a surge in India's capital markets, making them an attractive investment opportunity for savvy investors looking to make a positive impact on the environment while also generating profits.

Green hydrogen stocks in India

Here are the 10 popular Stocks In India:

Green Hydrogen Companies Stock in India

Market Cap (in Cr)

Oil and Natural Gas Corporation Ltd

Rs. 3,64,136

Reliance Industries Ltd

Rs. 18,93,796

JSW Energy

Rs. 1,16,863

NTPC Ltd

Rs. 4,08,181

Adani Green Energy Ltd

Rs. 2,77,593

Power Grid Corporation of India Ltd

Rs. 3,04,920

Gail (India) Ltd

Rs. 1,47,209

Indian Oil Corporation Ltd

Rs. 2,45,554

Adani Total Gas Ltd

Rs. 83,580


Disclaimer:
The market capitalisation values mentioned above were fetched on 4th October 2024. These values are subject to change based on various factors such as market conditions, company performance, and economic trends. Please refer to the SEBI or stock exchanges' websites to obtain the most current market capitalisation for any particular stock.

Pro tip

Invest in equities, F&O, and upcoming IPOs effortlessly by opening a Demat account online. Enjoy a free subscription for the first year with Bajaj Broking.

A quick analysis of top-performing green hydrogen stocks in India

The growing demand for clean and renewable energy indicates that investing in green hydrogen stocks might be a sensible idea. However, you must note the risks and understand market fluctuations when investing in any sector.

Here is an analysis of the trending green hydrogen stocks:

Oil and Natural Gas Corporation Ltd

ONGC, India's largest oil and gas exploration and production company, was established in 1956. The company operates both onshore and offshore fields to extract crude oil and natural gas.

As of October 1, 2024, ONGC had a market capitalization of Rs. 3,67,917.10 crore, with a closing price of Rs. 291.95. The company's PE ratio is 7.47, and it has a 5-year average return on investment of 9.00%. Its debt-to-equity ratio stands at 0.42, and it has a fundamental score of 12.00.

ONGC is actively pursuing green initiatives, including planning pilot projects for hydrogen production and blending, to reduce its carbon footprint and transition towards a cleaner energy future.

Reliance Industries Ltd.

Reliance Industries Limited operates in solar, hydrogen renewables, petrochemicals, hydrocarbon exploration, and petroleum refining segments. The company aims to reduce the cost of green hydrogen production and eventually transition to it completely.

JSW Energy

JSW Energy is India’s leading power generation company. It generates electricity through thermal and renewable energy sources such as hydro, solar, and wind power. JSW Energy has power plants in several Indian states, including Rajasthan, Karnataka, Maharashtra, West Bengal, Himachal Pradesh, and Andhra Pradesh.

National Thermal Power Corporation (NTPC)

NTPC is India’s largest power utility company, engaged in the generation and sale of electricity. NTPC operates thermal power plants across India and also operates in renewable energy sources such as solar and wind power.

Adani Green Energy Ltd.

AGEL serves local, state, and national markets. It operates in renewable energy generation and power projects focused on wind and utility-scale solar power.

Power Grid Corporation of India Ltd

Founded in 1989, Power Grid Corporation of India is India's largest power transmission company, operating an extensive electricity transmission network across the country.

As of October 1, 2024, Power Grid Corporation had a market capitalization of Rs. 3,26,830.03 crore, with a closing price of Rs. 350.80. The company's PE ratio is 20.99, and it has delivered a 5-year average return of 10.86%. Its debt-to-equity ratio stands at 1.42, and its fundamental score is 5.76.

Power Grid is actively exploring green hydrogen technologies for energy storage and transmission applications, aligning with India's focus on clean energy solutions.

Adani Power Ltd

Adani Power Limited, established in 1996, is a major private thermal power producer in India. Operating coal-based power plants across the country, Adani Power has a market capitalization of Rs. 2,51,935.25 crore, with a closing price of Rs. 653.20 as of October 1, 2024.

The company's PE ratio is 12.10, and it has delivered a 5-year average return of 15.72%. Its debt-to-equity ratio stands at 0.79, and it has a fundamental score of 5.69.

Adani Power is actively exploring the integration of green hydrogen into its power generation processes to reduce carbon emissions and promote a more sustainable energy future.

Indian Oil Corporation Ltd.

IOCL is an oil refining company that aims to achieve net zero emissions by setting up hydrogen plants at all its refineries. The state-owned company operates in petroleum products and petrochemicals. It also operates in renewable energy, cryogenics, and oil & gas exploration segments.

Adani Total Gas Ltd

Adani Total Gas Limited, established in 2004, is a significant player in India's gas distribution sector, catering to both industrial and residential consumers.

As of October 1, 2024, Adani Total Gas had a market capitalization of Rs. 86,494.56 crore, with a closing price of Rs. 786.45. The company's PE ratio is 129.58, and it has delivered a 5-year average return of 18.27%. Its debt-to-equity ratio stands at 0.43, and it has a fundamental score of 5.42.

Adani Total Gas is actively involved in green hydrogen projects, aiming to utilize hydrogen as an energy carrier to support its gas distribution network and contribute to India's clean energy transition.

Performance of trending green hydrogen stocks

Green hydrogen stocks have become an ideal addition to portfolios as they have provided good returns to investors in recent years.It is because of their higher growth potential based on India’s added focus on renewable energy and decarbonisation efforts. Green hydrogen stocks in India have showcased strong market demand and investor interest due to their involvement in cutting-edge technology and sustainable solutions.

If you analyse the performance of green hydrogen stocks, you will understand that the performance is based on factors such as technological advancements, government support, industry partnerships, and project developments.

If you want to further analyse the performance of green hydrogen stocks, you can visit your stockbroking app or platform and do a sector-wise analysis to identify stocks in this sector that have been performing well. After extensive due diligence, you can consider investing in stocks that can give you high returns. 

Factors and prerequisites to investments in green hydrogen stocks

Here are certain factors to consider and prerequisites for potential green hydrogen stock investors:

  • Focus and dedication of the company
    As green hydrogen is a relatively new and rapidly growing sector, it is important to analyse the company’s long-term plans, investments, financials, and commitment to the sector. It is also vital to stay updated on the transition and goal deadlines given by the companies to track their progress.
  • Government regulations and policies in support
    It is also important to analyse companies and the sector in relation to government policies and regulations in India. This is because positive policy measures can have a big impact on the industry as a whole and boost company growth. Thus, it becomes crucial to monitor government policies related to green initiatives and renewable energy. Also, check for any news or developments related to National Green Hydrogen Projects, research incentives and subsidies currently active for green hydrogen companies you are considering.
  • Technology and innovation
    It is also important to thoroughly assess the company's ability from the lens of research, technology, and development in the green hydrogen space. You should also check a company’s IP, technology infrastructure, and delivery technology. Also, it will be helpful to stay updated on upcoming innovations and applications of green hydrogen stocks.
  • Industry collaborations
    Investors should analyse company collaborations and partnerships with other companies, research outfits, and government institutions, as these can be a catalyst for the development of new and innovative solutions.
  • Efficiency and price competitiveness
    Before investing in green hydrogen stocks, investors must assess the operational efficiency of the company, the potential to produce green hydrogen at an economical price, and the cost structure, as they are crucial factors in a company’s ability to capture the market.
  • Revenue streams and diversification
    Having multiple revenue streams is important for a company. It is a good sign if the company you want to invest in has diversified into multiple green hydrogen projects spread across its many uses like industrial processes, transportation, energy storage, etc.
  • Strong financials
    It is also recommended that investors examine the company’s fundamental financials, like the balance sheet, financial health, and cash flow, to understand the growth potential. The company must have the ability to fuel its expansion.
  • Company leadership and vision
    Evaluate the senior management and leadership of the company by learning about their experience and vision to gauge their potential in navigating the challenges in the future.
  • ESG considerations
    ESG stands for environmental, social, and governance factors. It is crucial to know the company’s commitment to environmental conservation, sustainability, and social responsibility, as these play a significant role in strategic business decisions.
  • Competition in business
    Understanding a company in relation to its direct competitors helps derive insights about the overall market and sector.

Investments are risky as integration problems and regulatory risks continue to persist in this industry.

A careful analysis of these prerequisites and factors to examine before investing in green hydrogen stocks can help investors make informed investment decisions according to their financial goals and risk tolerance.

Before investing in stocks related to sustainable practices and eco-friendly applications, you must assess potential risks and checkpoints such as those listed above. However, it is worth noting that the government is backing companies that are taking charge in these areas and making sustainable strides. As with any investment, it is crucial to approach these stocks with caution, considering the leaps our country has yet to take pertaining to technological advancement and research funding in green hydrogen and renewable energy.

Benefits of investing in the best green hydrogen stocks

Here are the benefits of investing in green hydrogen stocks in India:

1. Alignment with environmental sustainability:

When you invest in green hydrogen stocks in India, you contribute towards making our environment sustainable. You can connect your investment amount with your ecological duty.

2. Potential for long-term growth:

The green hydrogen industry is rapidly growing based on increased governmental efforts and initiatives. With such significant growth in its early stages, the green hydrogen industry can provide good returns in the long term.

3. Diversification benefits:

You can add green energy stocks to your portfolio for effective diversification. The addition of stocks from the green hydrogen industry can allow you to spread your investments across industries and ensure a better risk management approach.

4. Contribution to decarbonisation efforts:

Green hydrogen is an alternative to fossil fuels, and investments in green hydrogen stocks can fuel companies' efforts to decarbonise businesses such as transportation and power creation. This can lead to a carbon-free and sustainable environment.

5. Technological innovation and advancement:

The green hydrogen industry is rapidly growing due to its increased investments in technological innovation and advancement. Most companies operating in the industry are innovating in areas such as fuel cells, energy storage, and electrolyser technologies.

6. Energy security and independence:

Investing in hydrogen stocks can help India reduce its dependence on foreign fossil fuels and increase energy security and independence. Furthermore, it can also create new job opportunities as the industry expands.

How to invest in the best green hydrogen stocks?

Here is the process of investing in green hydrogen stocks:

1. Determine your financial goals:

Before investing in green hydrogen stocks in India, analyse your financial situation and current portfolio to determine your investment goals. This will help you identify your investment strategy, whether you want to invest in the short term or long term. Furthermore, it will also aid in determining an initial investment amount and how much risk you can take with your investments.

2. Open a demat and trading account:

Once you know your investment goals, capital amount, and risk appetite, you must open a demat and trading account. As per SEBI, it is compulsory to open a demat and trading account to invest in stocks. You can compare stockbrokers based on their features and costs and choose the best one to start investing in green hydrogen stocks in India.

3. Research the stocks:

Once you have opened a demat and trading account, you can start investing in green hydrogen stocks. However, as green hydrogen share prices differ for every stock, you should undertake extensive technical and fundamental analysis to compare green hydrogen stocks. Technical analysis includes analysing stocks based on chart patterns, while fundamental analysis of stocks includes analysing the company fundamentals.

4. Diversify your investments:

Once you have narrowed down the green hydrogen stocks in India you want to invest in, it is crucial that you spread your investment amount across various stocks. Such diversification allows for a better approach towards risk management and ensures that you mitigate the chances of losses on your overall portfolio.

5. Monitor your portfolio:

One of the most important steps in investing in green hydrogen stocks in India is monitoring your investments once you have invested. Numerous factors affect the stock market and the green hydrogen sector, leading to significant fluctuations in the green hydrogen share price. Hence, monitor your portfolio regularly to adjust your holdings to book profits or limit your losses.

Conclusion

Consider investing in green hydrogen stocks to align your portfolio with eco-friendly and sustainable companies. Green hydrogen is produced using renewable energy sources and has the potential to be used in various sectors. Investing in these companies can be a long-term strategy, as green hydrogen is still in the early stages of development. Explore the trending green hydrogen companies to invest in and make informed choices that align with your financial goals and principles.

Related Articles:

Popular Semiconductor Stocks in India

Trending Infrastructure Stocks

Gold Stocks in India

What are Penny Stocks

Drone Stocks to Invest in India (2024)

Bajaj Finserv app for all your financial needs and goals

Trusted by 50 million+ customers in India, Bajaj Finserv App is a one-stop solution for all your financial needs and goals.

You can use the Bajaj Finserv App to:

  • Apply for loans online, such as Instant Personal Loan, Home Loan, Business Loan, Gold Loan, and more.
  • Invest in fixed deposits and mutual funds on the app.
  • Choose from multiple insurance for your health, motor and even pocket insurance, from various insurance providers.
  • Pay and manage your bills and recharges using the BBPS platform. Use Bajaj Pay and Bajaj Wallet for quick and simple money transfers and transactions.
  • Apply for Insta EMI Card and get a pre-approved limit on the app. Explore over 1 million products on the app that can be purchased from a partner store on Easy EMIs.
  • Shop from over 100+ brand partners that offer a diverse range of products and services.
  • Use specialised tools like EMI calculators, SIP Calculators
  • Check your credit score, download loan statements and even get quick customer support—all on the app.

Download the Bajaj Finserv App today and experience the convenience of managing your finances on one app.

Do more with the Bajaj Finserv App!

UPI, Wallet, Loans, Investments, Cards, Shopping and more

Disclaimer

1. Bajaj Finance Limited (“BFL”) is a Non-Banking Finance Company (NBFC) and Prepaid Payment Instrument Issuer offering financial services viz., loans, deposits, Bajaj Pay Wallet, Bajaj Pay UPI, bill payments and third-party wealth management products. The details mentioned in the respective product/ service document shall prevail in case of any inconsistency with respect to the information referring to BFL products and services on this page.

2. All other information, such as, the images, facts, statistics etc. (“information”) that are in addition to the details mentioned in the BFL’s product/ service document and which are being displayed on this page only depicts the summary of the information sourced from the public domain. The said information is neither owned by BFL nor it is to the exclusive knowledge of BFL. There may be inadvertent inaccuracies or typographical errors or delays in updating the said information. Hence, users are advised to independently exercise diligence by verifying complete information, including by consulting experts, if any. Users shall be the sole owner of the decision taken, if any, about suitability of the same.

Standard Disclaimer

Investments in the securities market are subject to market risk, read all related documents carefully before investing.

Research Disclaimer

Broking services offered by Bajaj Financial Securities Limited (Bajaj Broking) | REG OFFICE: Bajaj Auto Limited Complex, Mumbai –Pune Road Akurdi Pune 411035. Corp. Office: Bajaj Broking., 1st Floor, Mantri IT Park, Tower B, Unit No 9 &10, Viman Nagar, Pune, Maharashtra 411014. SEBI Registration No.: INZ000218931 | BSE Cash/F&O/CDS (Member ID:6706) | NSE Cash/F&O/CDS (Member ID: 90177) | DP registration No: IN-DP-418-2019 | CDSL DP No.: 12088600 | NSDL DP No. IN304300 | AMFI Registration No.: ARN –163403.

Website: https://www.bajajbroking.in/

Research Services are offered by Bajaj Financial Securities Limited as Research Analyst under SEBI Registration No.: INH000010043.

Details of Compliance Officer: Ms. Kanti Pal (For Broking/DP/Research) | Email: compliance_sec@bajajfinserv.in/ Compliance_dp@bajajfinserv.in | Contact No.: 020-4857 4486 |

This content is for educational purpose only.

Investment in the securities involves risks, investor should consult his own advisors/consultant to determine the merits and risks of investment.

Frequently asked questions

Is Tata Power in green hydrogen?

Yes. Tata Power is expanding its business and investing in green hydrogen projects. Recently, it has grown its business footprint and invested in emerging technologies such as green hydrogen, offshore wind energy projects, and pumped hydro storage.

Which is the most valued hydrogen stock?

Numerous big companies have operations in green hydrogen. Many of the stocks are considered the most valued hydrogen stocks. You can visit your stockbroking app or platform and filter the companies in the green hydrogen industry to find the most valued green hydrogen stock.

Why is Adani investing in green hydrogen?

Adani Group is heavily investing in green hydrogen technologies as it believes it is the next big industry that will dominate. Furthermore, the investments are a part of Adani Group’s efforts to help India achieve its goals of net zero emissions by 2070.

Mr. Adani highlighted the potential of India's growing renewable energy sector to drive a hydrogen economy. He emphasized India's strategic position to lead this energy revolution and capitalize on the opportunities it presents.

 

Who are the big players in green hydrogen?

Green hydrogen operations require heavy investment, which is possible for companies with significant market capitalisation and revenues. Hence, companies with hefty market shares and large-cap stocks are generally the big players in the green hydrogen industry.

Is green hydrogen a good investment?

Given that applications and infrastructure are still under development, the green hydrogen market is currently in its nascent stage. However, for long-term investors with a high-risk tolerance, this emerging sector could offer significant potential returns as it matures.

What are the disadvantages of green hydrogen?

The primary disadvantages of green hydrogen include:

  • High Cost: The production of green hydrogen relies on renewable energy sources like solar and wind, which can be more expensive than traditional fossil fuels. This increased cost of production directly impacts the overall cost of green hydrogen.
  • High Energy Consumption: The process of producing hydrogen, especially through electrolysis, requires significant energy input. This high energy demand can limit the scalability of green hydrogen production.
  • Safety Concerns: Hydrogen is highly flammable and can pose safety risks if not handled properly. Strict safety measures and infrastructure are necessary to mitigate these risks.
Is Tata investing in green hydrogen?

Tata Power, a prominent integrated power company, has been actively investing in renewable energy sources. The company is now venturing into the green hydrogen sector, with plans to establish a pilot project in India. To further explore the potential of green hydrogen, Tata Power has entered into partnerships with various stakeholders.

Show More Show Less