Investors’ love for Adani Green stock makes NTPC investors green with envy
Adani Green Energy Ltd hit a new 52-week high on Wednesday exceeding ₹1 lakh crore market capitalization. NTPC Ltd, with 19 times the operating asset base and much higher revenue, is valued at less than ₹90,000 crore.
Similar to Adani Green, NTPC also has a huge capacity addition pipeline providing growth visibility. The only difference being Adani Green is a pure play renewable energy firm, while NTPC is largely a conventional electricity producer.
Even so, analysts are at pains to explain Adani Green’s valuation. “If I have to use the discounted cash flow valuation method the value of the stock would be less than half of the current market price (of ₹677),” says an analyst on condition of anonymity.
