Best Green Hydrogen Stocks in India: Share Price Movements (NSE)

According to a recent report, energy use has doubled in the last 20 years and is likely to grow by at least 25% by 2030. As a result, many countries are investing rapidly in renewable energy resources, and green hydrogen is one of them. Consequently, green hydrogen companies in India are gaining popularity. The stocks of companies involved in producing, storing, and distributing green hydrogen have become increasingly popular among investors.

This blog will discuss the best green hydrogen stocks in India and their potential as investments. Read on to learn more.

Best Green Hydrogen Stocks in India for 2024

Here is a list of the top-performing green hydrogen stocks in India based on their return on equity (ROE):

Disclaimer: Please note that the above list is for educational purposes only, and is not recommendatory. Please do your own research or consult your financial advisor before investing.

Note: The data in the best green hydrogen stocks in India list is from 22nd August 2024. This data is derived from Tickertape Stock Screener.

🚀 Pro Tip: You can use Tickertape’s Stock Screener to research and evaluate stocks with over 200+ filters and parameters.

Top Green Hydrogen Companies in India: An Overview

Here is a brief overview of the top green hydrogen companies in India listed in NSE from our curated list above: 

Bharat Petroleum Corporation Ltd

In 2021, BPCL teamed up with Bhabha Atomic Research Centre (BARC) to advance Alkaline Electrolyser technology for Green Hydrogen production. Bharat Petroleum Corporation Ltd aims to reach 1,000 MW of capacity by 2027 using renewable sources, including green hydrogen. As of 22nd August 2024, BPCL’s market capitalisation stands at Rs. 1,52,368 cr. Over the last 5 years, the company’s net income has grown at a yearly rate of 28.05%, higher than the industry average of 17.55%.

Indian Oil Corporation Ltd

Indian Oil Corporation Limited (IOCL) operates in the refining sector, selling petroleum products, petrochemicals, and related activities. As of 22nd August 2024, IOCL had a market capitalisation of Rs. 2,45,554 cr., and its PE ratio is 5.88. Additionally, the company has an ROE of 25.19% and a cash flow margin of 9.09%. Over the past 5 years, the company’s net income has grown at a yearly rate of 19.15%, higher than the industry average of 17.55%.

Jindal Stainless Ltd

Haryana’s first green hydrogen project in Hisar was set up by Jindal Stainless Ltd. with Hygenco and inaugurated by Union Minister Jyotiraditya M. Scindia. This project aims to cut 2,700 metric tonnes of carbon emissions annually, totalling 54,000 tonnes over 20 years. It also includes floating solar panels to minimise water evaporation. As of 22nd August 2024, the green hydrogen manufacturing company in India had a market capitalisation of Rs. 61,251 cr. Over the past 5 years, Jindal’s revenue has grown annually by 25.08%, outpacing the industry average of 13.9%. The company’s market share increased from 2.57% to 4.52% during this period.

Oil and Natural Gas Corporation Ltd

Maharatna ONGC, India’s largest crude oil and natural gas company, produces about 71% of the country’s domestic output. By 2035, ONGC aims to invest Rs. 800-850 billion ($9.6-10.2 billion) to develop a green ammonia production capacity of two million tonnes annually. This involves two projects, each targeting one million tonnes per year, collaborating with partners like Greenko. As of 22nd August 2024, ONGC’s market capitalisation stands at Rs. 4,12,255 cr., and its PE ratio is 8.38. Over the last 5 years, the company’s debt-to-equity ratio has been 48.95%, lower than the industry average of 49.28%.

Gail (India) Ltd

GAIL (India) Limited is a major hydrogen company in India, an integrated energy company in the hydrocarbon sector. It deals with natural gas marketing and transmission, petrochemicals, and produces liquid hydrocarbons like LPG, propane, and naphtha. As of 22nd August 2024, GAIL’s market capitalisation was Rs. 1,55,270 cr. The company’s PE ratio is 15.69, and its return on equity is 13.91%. Over the last 5 years, the company’s revenue has grown yearly at 21.77%, higher than the industry average of 21.53%. In the same period, the company’s market share increased from 69.81% to 70.17%.

NTPC Ltd

NTPC Limited generates and sells electricity in bulk to state power utilities. As of 22nd August 2024, the company’s market capitalisation stood at Rs. 3,96,545 cr., and its PE ratio is 19.05. Over the past 5 years, NTPC’s revenue has grown at an annual rate of 13.79%, surpassing the industry average of 12.11%. Additionally, the company’s market share has risen from 63.03% to 65.96% in the same period.

Larsen & Toubro Ltd

Larsen & Toubro Limited specialises in technology, engineering, construction, manufacturing, and financial services. As of 22nd August 2024, the company boasts a market capitalisation of Rs. 4,94,455 cr. Over the past 5 years, the company’s revenue has grown yearly at 8.95%, higher than the industry average of 8.06%. In the same period, the company’s market share increased from 43.1% to 47.98%, and its current ratio was 132.09, which is also higher than the industry average of 111.14.

Adani Green Energy Ltd

Adani Green Energy, one of the top green hydrogen manufacturers in India, focuses on building and operating solar and wind energy plants across India. As of 22nd August 2024, its market capitalisation stood at Rs. 3,04,268 cr., and its PE ratio is 276.61. Over the last 5 years, the company’s revenue has grown at a yearly rate of 41.46%, higher than the industry average of 10.9%. In the same period, the company’s market share increased from 7.69% to 25.67%. 

JSW Energy Ltd

One of the major green hydrogen production companies in India, JSW Energy Limited, generates and sells electricity, positioning itself as a key player in the power sector. As of 22nd August 2024, the company had a market capitalisation of Rs. 1,25,581 cr. The green hydrogen company’s revenue has grown at a yearly rate of 18.36% over the past five years, higher than the industry average of 13.9%. In the same period, the stock’s market share increased from 15.78% to 21.06%, and its free cash flow growth was 2.24%, which was also higher than the industry average of 11.52%.

Reliance Industries Ltd

At the 2022 Annual General Meeting, Mukesh Ambani, Chairman and Managing Director of Reliance Industries Ltd (RIL), announced the company’s plan to shift from producing grey hydrogen to green hydrogen by 2025. In line with this transition, RIL, in partnership with Ashok Leyland, introduced India’s first hydrogen-powered truck. As of 22nd August 2024, RIL’s market capitalisation stood at Rs. 20,27,950 cr., and its PE ratio is 29.13. Over the last 5 years, the company’s revenue has grown at a yearly rate of 9.69%, higher than the industry average of 8.87%, and its market share increased from 32.13% to 33.37%.

Confused About Which Green Hydrogen Stocks to Invest in? Consider Exploring smallcase

Green Energy smallcase: This smallcase comprises a portfolio of stocks positioned to gain from the shift in energy production towards renewables from fossil fuels. This transition spurs growth throughout the energy sector, especially in transmission and distribution. It involves upgrading grid infrastructure for better stability and enhancing distribution networks for efficiency.

Green Energy smallcase by Niveshaay

Disclosure for the Green Energy smallcase.

What are Green Hydrogen Stocks in India?

Green hydrogen is a form of renewable energy. It is formed when water (H₂O) molecules are split into two chemical components: hydrogen (H2) and Oxygen (O2). Thus, when we talk about green hydrogen, we mean hydrogen obtained without emitting pollution, i.e. sustainable hydrogen. This fuel is already being hailed as the key to global decarbonisation and fulfilling climate change commitments by 2050.

Green hydrogen energy stocks refer to the hydrogen fuel companies in India that produce, store, and distribute green hydrogen. India’s green hydrogen fuel companies use wind or solar power to power the electrolysis process for green hydrogen production, where an electrolyser is used to split water into hydrogen and oxygen. Tracking the share price of leading electrolyser manufacturers in India is also important for investors looking for growth potential in the green hydrogen sector.

Features of Green Hydrogen Stocks India

Green hydrogen stocks on the Indian NSE represent a burgeoning sector at the forefront of sustainable energy. Understanding their distinctive features is crucial for informed investment decisions.

• Production Methods: The best green hydrogen fuel stocks in India derive their appeal from environmentally friendly production methods. Electrolysis powered by renewable energy sources, such as solar and wind, distinguishes them from conventional hydrogen production.
• Carbon Neutrality: A defining feature of green hydrogen fuel stocks in India is the commitment to carbon neutrality. Hydrogen producing companies in India strive to minimise or completely offset their carbon footprint, contributing to global efforts to combat climate change.
• Technological Innovation: Innovation is a cornerstone of the green hydrogen sector in India, with green hydrogen companies in India listed in NSE investing in advanced electrolysis techniques, efficient storage solutions, and scalable production methods. These innovations highlight the sector’s drive towards enhancing the efficiency and viability of green hydrogen as an energy source.
• Strategic Partnerships: The formation of strategic partnerships with hydrogen fuel cell companies in India, governments, and technology providers plays a significant role in the scalability and success of green hydrogen initiatives. These collaborations are pivotal in overcoming industry challenges and achieving long-term objectives.
• Policy and Regulatory Environment: The regulatory landscape significantly impacts green hydrogen energy stocks in India. Being aware of supportive policies, subsidies, and regulatory frameworks is vital for assessing the long-term viability and growth potential of these green hydrogen shares in India.
• Market Dynamics: A thorough understanding of market dynamics is essential for successful investment in the best green hydrogen stocks in India. Factors such as global demand, competition, and geopolitical influences are key determinants of the performance of green hydrogen stocks in India.

Union Budget Allocations Relevant for the Green Hydrogen Sector in 2024-25

The Union Budget for 2024-25, presented by Finance Minister Nirmala Sitharaman, emphasises the need for a sustainable and resilient economy. Building on the interim budget, the Budget prioritises energy security and agricultural sustainability, thereby advancing India’s Nationally Determined Contributions (NDCs). Here are a few provisions that may affect the Green Hydrogen sector:

1. The budget proposes measures to boost energy storage and capacity creation in the renewable energy sector. The interim Budget highlighted a Rs. 600 cr. allocation for the National Green Hydrogen Fund, aiming for ‘net zero’ by 2070. We will further discuss India’s National Green Hydrogen Mission in the section below.
2. The government has increased funding for solar power projects to Rs. 10,000 cr. This is a 110% rise from Rs. 4,757 cr. in the previous fiscal year. It supports the PM – Surya Ghar: Muft Bijli Yojna in installing up to 1 crore solar rooftop systems in residential areas.
3. The Ministry of New and Renewable Energy will receive Rs. 19,100 cr. in 2024-25, higher thsn the allocation of Rs. 10,222 cr. in 2023-24. However, the allocation for the Ministry of Power has decreased to Rs. 20,502 cr. for 2024-25 from the allocation of Rs. 20,671 cr. in 2023-24.

National Green Hydrogen Mission

As India’s growth story unfolds, its demand for energy and resources is set to rise. The National Hydrogen Mission will act as a catalyst for new opportunities, aiming to become energy-independent by 2047 and achieve Net Zero emissions by 2070.

In India, the National Green Hydrogen Mission promotes developing and using green hydrogen in India. Furthermore, as part of the National Budget 2023, the Mission received Rs. 19,700 cr. to promote hydrogen as a clean and renewable energy source.

The main objective is to increase hydrogen production and reduce dependence on fossil fuels. Therefore, to achieve this, the mission promotes the development of hydrogen-producing technologies, such as hydrolysis, steam methane reforming, and biomass gasification to increase the use of hydrogen energy in India. 

Hence, the mission is expected to facilitate the deployment of the Green Hydrogen ecosystem and renewable energy by creating opportunities for innovation, investments and economic growth. With the Indian government offering incentives for hydrogen production, the share price of hydrogen-producing companies in India has started to climb.

Benefits of Investing in Green Hydrogen Stocks

Thus, there are several advantages to adding green hydrogen stocks in India to your portfolio or investing on the smallcase platform. Now, let’s have a look at the benefits: 

• Growth Potential: The demand for clean energy is increasing as more countries and businesses commit to reducing their carbon footprint. As a result, the demand for green hydrogen-related stocks in India is expected to grow rapidly in the coming years, which could lead to significant opportunities.
• Diversification: Adding the green hydrogen stocks on the NSE to your portfolio may help diversify your investments, which can reduce risk. Green hydrogen investments are less likely to be correlated with other assets in your portfolio, such as green hydrogen stocks or bonds.
• Environmental Benefits: Green hydrogen shares in India support transitioning to a more sustainable and environmentally friendly energy system. Thus, investing in green hydrogen production companies in India that produce or use green hydrogen can potentially contribute to developing a low-carbon economy.
• Innovation and Technological Advancements: Investing in green hydrogen-related stocks in India can support the development of new technologies and innovations in the energy sector. Hence, this can lead to new investment opportunities as green hydrogen listed companies in India develop and commercialise new products and services. 

Challenges of Investing in Green Hydrogen Stocks

When evaluating the best green hydrogen stocks in India, it’s important to keep in mind certain challenges that the industry faces, which can be viewed as opportunities for innovation and growth in the industry. 

• High Costs: Some may view the production of green hydrogen as expensive due to the hydrogen technology used in the electrolysis process. However, with increased demand and technological advancements in the industry, cost reductions can occur with increased efficiency.
• Limited Infrastructure: The infrastructure for storing, transporting, and distributing green hydrogen is not yet well-developed. However, this presents an opportunity for green hydrogen manufacturing companies in India to invest in new infrastructure (such as pipelines and storage facilities), creating new jobs and economic growth.
• Competition from Fossil Fuels: Though fossil fuels remain cheaper than green hydrogen, they are harmful in the long run. Thus, increasing awareness about the environmental impacts of fossil fuels presents an opportunity for green hydrogen fuel companies listed in India to become a more competitive option in the long run.
• Regulation and Policy: Regulations and policies surrounding the production and use of green hydrogen are still in their early stages. However, this presents an opportunity for policymakers to collaborate with industry leaders to incentivise the growth of the best green hydrogen stocks in India.

How to Identify the Best Green Hydrogen Stocks?

Investing in green hydrogen, a key component of India’s renewable energy strategy, requires discernment and strategic analysis. Here’s how you can identify the best green hydrogen stocks in India:

• Understand the Industry: It can be helpful to gain a solid understanding of green hydrogen and its applications across various sectors such as fertilisers, steel, and mobility.
• Research Companies: Investors can look for green hydrogen producing companies in India stocks that are actively involved in producing or using green hydrogen. When comparing the listed companies among hydrogen manufacturers in India, it’s essential to consider their financial stability, technological innovation, and long-term growth potential.
• Financial Analysis: Investors can evaluate the financial stability of these companies through their financial statements focusing on profitability, revenue streams related to green hydrogen, and overall financial health.
• Government Policies: It can be helpful to analyse the impact of Indian government initiatives like the National Hydrogen Mission, which might influence sector growth of green hydrogen stocks in NSE and bring potential subsidies and incentives for companies.
• ESG Factors: Consider Environmental, Social, and Governance (ESG) ratings to ensure sustainable and responsible investing.
• Industry Collaborations: Check for strategic partnerships that could provide technological advancements and market expansion opportunities.
• Sector Outlook and Expert Opinions: Consider the sector’s long-term growth potential and consult industry analysts’ forecasts and stock recommendations.

Identifying the best green hydrogen stocks in India involves a thorough market analysis, understanding the policy landscape, and evaluating company fundamentals. Investors should closely monitor the green hydrogen share price in India as companies focus on renewable energy projects.

Who Should Invest In Green Hydrogen Sector Stocks?

Investing in green hydrogen sector stocks is particularly suited for a specific investor profile due to the unique characteristics and stage of the industry. Here’s who should consider investing:

• Risk-Tolerant Investors: Given the emergent nature of the green hydrogen sector, it can entail higher volatility and risk. Investors who can withstand potential downturns and have a higher risk appetite are well-positioned for such investments.
• ESG-focused Investors: Individuals or institutions looking to bolster their portfolios with environmentally sustainable investments will find that green hydrogen stocks align well with their goals. These green stocks contribute directly to reducing carbon footprints and advancing renewable energy technologies.
• Diversified Investors: Green hydrogen stocks can broaden the investment landscape of those seeking to diversify their portfolios across different energy sources, especially in renewable and future technologies.

Factors to Consider Before Investing in Green Hydrogen Companies in India

Investing in green hydrogen companies in India or green energy stocks may be a promising opportunity for investors looking to capitalise on the growth potential of the clean energy industry. Here are some of the most important factors to keep in mind:

• Government Policies and Regulations: Investing in India’s hydrogen-related or green hydrogen fuel cell stocks in India presents a promising opportunity for those looking to capitalise on the clean energy industry’s growth potential. A critical factor for investors is understanding government policies and regulations. Green hydrogen production in India is in its nascent stages, making it essential for investors to stay informed about renewable energy policies, including the National Green Hydrogen Projects, alongside available incentives and subsidies for green hydrogen fuel companies in India.
• Market Demand and Growth Potential: Another pivotal consideration is India’s market demand and growth potential for green hydrogen. Investors must thoroughly research the expected demand for green hydrogen stock in India and evaluate the long-term growth prospects of green hydrogen fuel companies in India. This factor is crucial in determining investments’ viability and future success in this sector.
• Financial Performance: Assessing the financial performance of green hydrogen companies in India is imperative before investing. Reviewing financial statements, including metrics such as revenue growth, profit margins, and cash flow, will aid investors in making informed decisions.
• A Viable Alternative Energy Source: Investors in green hydrogen companies in India are often motivated by the desire to affect the environment positively. Therefore, it is vital for investors to evaluate the environmental impacts of the hydrogen energy stocks in India they are considering.

To Wrap It Up…

To conclude, green hydrogen is gaining attention as a clean energy source that can contribute to a sustainable future. The push toward renewable energy has placed every leading hydrogen company in India at the forefront of the green hydrogen revolution. Therefore, governments worldwide are prioritising decarbonisation and renewable energy, resulting in the rise of green hydrogen shares in India. Investors interested in renewable energy can now explore more green hydrogen stocks or check out the green hydron stocks at smallcase!

Frequently Asked Questions About Green Hydrogen Stocks