Amid the rising awareness of climate change, hydrogen has emerged as a game changer in providing clean and green energy. Touted as the best solution for the clean energy transition, it has received significant attention worldwide, including in India. With the country’s growing focus on decarbonisation, hydrogen stocks have emerged as an intriguing investment opportunity. This article explores the hydrogen stocks in India that you can target as long-term investment options. We’ll analyse the factors that make these stocks worthy of investing.
Hydrogen stocks refer to the shares of the companies involved in the production, distribution, or utilisation of hydrogen as an energy source. These companies are at the forefront of leveraging hydrogen’s potential as a clean, renewable, and versatile energy carrier. By investing in these stocks, one can participate in the growth and development of this transformative industry.
These are the top hydrogen stocks in 2023 based on their 5-yr CAGR.
| Company name | Market capitalisation (₹ in crore) | PE ratio (TTM) | 5-year CAGR (%) |
| Adani Green Energy Ltd. | 1,50,119 | 133 | 99 |
| Reliance Industries Ltd. | 17,48,571 | 26.2 | 21.7 |
| National Thermal Power Corporation Ltd. | 1,87,534 | 11.1 | 9.10 |
| Oil and Natural Gas Corporation Ltd. (ONGC) | 2,04,807 | 5.29 | 0.93 |
| Bharat Petroleum Corporation Ltd. | 83,852 | 24.9 | 0.63 |
Note: The list of the best hydrogen stocks here is dated as of July 5, 2023. The stocks are sorted according to their 5-yr CAGR.
The company is involved in renewable energy generation and ancillary activities. Adani Green Energy Ltd. develops, builds, owns, and operates solar and wind power projects, solar parks, hybrid power generation projects, etc. The company has plans to build a renewable energy portfolio of 25 GW by 2025. The company has delivered a healthy profit growth rate of 61% CAGR in the last 5 years.
Key financial highlights of the company
Reliance Industries has involvement in different segments, including oil, gas, chemicals, textiles, digital services, finances, etc. Reliance has plans to invest ₹75,000 crore (US$10 billion) in constructing a comprehensive ecosystem for new energy and become net-zero carbon by 2035. It is also involved in producing green energy that is affordable and available to every Indian.
Key financial highlights of the company
NTPC Ltd is one of the hydrogen stocks in India you can explore if you are looking for a good dividend-paying stock in the segment. It is a government-owned Maharatna company involved in the generation and sale of electricity. NTPC has also expanded to create green hydrogen as a more environmentally friendly alternative. The company has maintained a healthy dividend payout of 41%.
Key financial highlights of the company
The India-based Oil and Natural Gas Corporation has partnered with the Greeko Group to jointly explore opportunities in renewable energy, green hydrogen, green ammonia, and other derivatives of green hydrogen. According to the MoU signed between the parties, Greenko will support the green initiatives of ONGC for the next two years.
Key financial highlights of the company
BPCL has undertaken a project to use its steel pipelines to combine green hydrogen with natural gas for commercial, industrial, and household uses. It will build a 5 MW electrolyzer project in Ahmedabad and Aurangabad to produce green hydrogen energy.
Key financial highlights of the company
The demand for energy and fuel has increased considerably in the country with the growth of its economy. In the last two decades, India’s energy demand has almost doubled, and it is expected to grow by 25% by 2030.
At present, India imports 40% of its energy needs from outside, which costs around $90 billion annually. Industries like transportation and manufacturing depend heavily on imported fossil fuels. To attain energy independence, the Government of India launched the National Green Hydrogen Mission on January 4, 2023. It outlays a proposal for an investment of ₹19,744 crore from FY 2023–24 to FY 2029–30 to help the government achieve its green energy targets.
Under the National Green Hydrogen Mission, India aims to become energy independent by 2047 and emission-free by 2070. It targets reducing CO2 emissions by 45% from the 2005 level by 2030 to 50 MMT annually.
Green hydrogen is considered a promising alternative that can help the country achieve its energy target. It can be stored and utilised for a longer duration and has the potential to be used as fuel for industries, transports, power generation, aviation, and marine transports.
The changing focus on green energy has created a buzz for hydrogen stocks in India.
If you want to invest in the top hydrogen stocks in 2023, open a Demat account with Angel One today and explore more stocks from the sunrise sector.
Disclaimer: This article has been written for educational purposes only. The securities quoted are only examples and not recommendations.
Published on: Aug 2, 2023, 3:21 PM IST
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