Best Green Hydrogen Stocks For Jan 2025: JSW Energy, Adani Green Energy, RIL, and More- Based on 5Y CAGR

India’s green hydrogen industry presently lacks a nationwide pipeline infrastructure. Drawing lessons from the European Hydrogen Backbone project, India has the opportunity to repurpose its existing gas network to create a specialized hydrogen transport system.

From 2015 to 2018, global green hydrogen production amounted to approximately one million metric tons. Green hydrogen is produced from renewable energy sources, in contrast to blue hydrogen, which is derived from fossil fuels with the use of carbon capture and storage. Blue hydrogen production is forecasted to increase dramatically to 80 million metric tons by 2050, provided governments continue to support cleaner fuel technologies

Best Green Hydrogen Stocks For Jan 2025 – Based on 5Y CAGR

Note: The stocks mentioned above have been selected and sorted based on 5Y CAGR as of Jan 3, 2025

Overview of 5 Green Hydrogen Stocks

JSW Energy Limited

JSW Energy Ltd and its subsidiaries are mainly involved in the business of generation of power from its power assets located in Karnataka, Maharashtra, Nandyal and Salboni. During Q2 FY25, the company commissioned 204 MW of wind capacity and added 495 MW capacity YTD FY25. It also commissioned 440 MW of 454 MW SECI X Wind Project.

Key Metrics:

• Return on Equity (ROE): 8.40%
• Return on Capital Employed (ROCE): 8.59%

Adani Green Energy Limited

Adani Green Energy Limited is a holding company of several subsidiaries that operate renewable power generation businesses within the group. It is primarily involved in renewable power generation and other ancillary activities. As of Q2 FY25, the company operates strategic sites of 2,50,000 acres for solar and wind plant development and 5+ GW for PSP development backed by comprehensive geotechnical studies, fully prepared evacuation infrastructure, and meticulously crafted design work & resource analysis.

Key Metrics:

• ROE: 14.7%
• ROCE: 9.65%

ONGC Ltd

ONGC is the largest crude oil and natural gas Company in India, contributing around 71 per cent to Indian domestic production. ONGC reported a net profit (profit after tax) of ₹11,984 crore for Q2 FY25, compared to ₹10,238 crore for Q2 FY24, reflecting an increase of ₹1,746 crore, or 17.1%. Similarly, for H1 FY25, the profit after tax grew by ₹157 crore, or 0.8%, from ₹20,765 crore in H1 FY24 to ₹20,922 crore in H1 FY25.

Key Metrics:

• ROE: 16.3%
• ROCE: 18.4%

Reliance Industries Ltd

Reliance Industries Limited is involved in refining, and manufacturing of refined petroleum products, and petrochemicals, including the manufacturing of basic chemicals, fertilisers and nitrogen compounds, plastic and synthetic rubber in primary forms. During Q2 FY24, RIL recorded improved performance in the Oil & Gas business with sustained volume growth.

Key Metrics:

• ROE: 9.25%
• ROCE: 9.61%

Indian Oil Corporation Ltd

Indian Oil Corporation Ltd is in the business of the entire hydrocarbon value chain – from Refining, Pipeline transportation and marketing of Petroleum products to R&D, Exploration & production, and marketing of natural gas and petrochemicals.

Key Metrics:

• ROE: 25.7%
• ROCE: 21.1%

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

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