NTPC Green Energy share price jumps 13.5% after tepid listing. Should you buy, sell or hold?

Stock Market Today: NTPC Green Energy share price made a muted stock market debut on Wednesday, November 27, listing at ₹111.50 per share on the NSE, a modest 3.2% premium over its issue price of ₹108. On the BSE, the stock debuted at ₹111.60, showing a slightly higher premium of 3.3%.

Despite a lukewarm initial response, the stock gained momentum, briefly reaching its upper price band of ₹122.65 on the NSE, marking a 13.56% gain from its issue price. This surge came after a strong investor response to the issue, yet the stock’s entry on Dalal Street is weak compared to the subscription enthusiasm.

While the debut was tepid, analysts remain bullish on NTPC Green Energy’s long-term prospects, emphasising the company’s solid fundamentals and its strong position within India's renewable energy sector.

NTPC Green Energy Shares: Where are they headed?

VLA Ambala, co-founder of Stock Market Today, suggests that investors with allotments in NTPC Green Energy should hold their positions for at least two years, citing the company’s strong fundamentals and the promising prospects of the green energy sector. He further emphasised that non-allotted investors could explore opportunities in the secondary market but must approach the stock with a long-term view as short-term results could be disappointing. 

He said investors with a 3 to 6-year investment horizon can target a price range of ₹250 to ₹600.

Prashanth Tapse, Senior VP, Research at Mehta Equities, said, "As expected, the NTPC Green Energy listing aligned with the flat debut. Valuations and subdued market mood justify the listing."

For long-term investors, NTPC Green Energy is an excellent opportunity to invest in a leading player in India's renewable energy sector, backed by the formidable resources and expertise of NTPC Ltd as a long-term strategy only, Tapsee said.

He further emphasised that NTPC Green’s strategic expansion into green hydrogen, chemicals, and battery storage, positions it at the forefront of India’s energy transition.

Considering all the parameters, allotted investors should consider holding it for long-term despite the short-term market volatility, he said.

Manish Chowdhury, Head of Research, StoxBox, echoed similar views, suggesting that investors who have been allotted shares should consider maintaining their positions with a medium- to long-term outlook.

Chowdhury said that NTPC Green Energy leverages NTPC's five-decade legacy, extensive experience, strategic partnerships, advanced operations and maintenance (O&M) technologies, and in-house expertise to efficiently develop, procure, and operate renewable energy projects, aligning with NTPC's target of achieving 60 GW of renewable capacity by 2032.

He said the company boasts a diversified portfolio of 16,896 MW across solar and wind projects, a pipeline capacity of 9,175 MW, long-term PPAs with government agencies and public utilities, and widespread renewable energy development across India.

"Given its strategic development and solid financial growth, the company is well-positioned to capitalise on growth opportunities in the renewable energy sector," Manish Chowdhury stated.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.