Why Invest in Green Hydrogen Stocks?

Several reasons that make investing in green hydrogen stocks appealing to investors:

• Diversification: Green hydrogen stocks offer diversification opportunities to investors. Companies dealing in green hydrogen thus have the edge in long-term growth as the world rapidly transforms into renewable energy.
• High Returns Potential: If a company performs well and the green hydrogen market increases, the value of the shares may climb dramatically, resulting in great returns on investment.
• Energy Security: Green hydrogen can contribute to energy security by providing a reliable and clean source of energy reducing dependence on fossil fuels.
• Environmental Benefits: Green hydrogen is a source of clean energy that will, if taken seriously, drastically reduce the emission of greenhouse gasses currently often argued to be the cause of climatic changes.
• Governmental Support: Several policies, subsidies, and investments are being rolled out by governments to make the environment perfect for companies involved in green hydrogen.

 

When it comes to start investing, It is good to have a demat account with a DPs as it makes it necessary for every investor to purchase shares in a dematerialized form to track and access your shares portfolio online.

Best Green Hydrogen Stocks in India

The green hydrogen industry in India is on the verge of exponential growth, backed by government initiatives and growing investments. Following are some of the best green hydrogen stocks listed in India:

Company Name	Market Cap (₹ Crore)*	P/E Ratio
Reliance Industries Ltd	19,68,971	28.14
NTPC Ltd	3,14,899	16.15
Indian Oil Corporation Ltd	2,33,212	4.98
Larsen & Toubro Ltd	4,97,284	39.31
GAIL (India) Ltd	1,14,472	14.19
JSW Energy Ltd	84,774.81	51.58
Oil and Natural Gas Corporation Ltd	3,31,175	7.9

* as of 10/07/2024

 

A Brief Overview of the Best Green Hydrogen Stocks

Before investing in the top Green hydrogen stocks, consider this brief overview:

 

1. Reliance Industries Ltd.

RIL is a multinational conglomerate headquartered in India. RIL's strategic objective encompasses green energy and sustainable solutions. As the globe transitions towards cleaner energy sources, green hydrogen is gaining popularity. RIL is well-positioned to benefit from this trend. It seeks to produce green hydrogen at a competitive price.

 

2. NTPC Ltd.

NTPC is India's largest power generator, best known for its coal-fired power stations throughout the country. However, the corporation is actively diversifying into non-fossil energy sources in order to meet global environmental targets. The company sees green hydrogen production using renewable energy sources as one way to reduce carbon emissions.

 

3. Indian Oil Corporation Ltd.

Indian Oil is taking the lead in India's emerging green hydrogen sector. The company has formed a joint venture with sustainable energy provider ReNew Power and engineering behemoth Larsen and Toubro (L&T) to manufacture green hydrogen.

Indian Oil introduced India's first green hydrogen-powered bus, which produces only water as a byproduct. This demonstrates their dedication to sustainable transportation.

 

4. Larsen & Toubro Ltd.

Larsen & Toubro is engaged in infrastructure projects with a market cap of ₹4,97,284 crores. L&T has also struck a deal with the Indian Institute of Technology Bombay (IIT Bombay) to collaborate on research and development in the Green Hydrogen value chain. It is setting up facilities and is currently investing in technology development to facilitate the production and utilization of green hydrogen.

 

5. GAIL (India) Ltd.

GAIL has made great progress towards green hydrogen production. In conjunction with Tecnimont and NEXTCHEM, GAIL opened India's first green hydrogen generation plant in Vijaipur, Madhya Pradesh. The facility produces green hydrogen using a 10-megawatt electrolysis unit at 4.3 tonnes per day.

GAIL's green hydrogen projects help India achieve its broader goals of being energy-independent by 2047 and reaching Net Zero by 2070.

 

Factors to Consider Before Buying Green Hydrogen Stocks in India

Investors interested in Green hydrogen stocks should consider the following factors:

• Company Commitment to Sustainability: The company must be committed to sustainability and taking steps toward reducing carbon emissions. The more focused a company is on sustainability, the greater its likelihood of success in the green hydrogen sector.
• Technological Capabilities: Monitor the company's technological capabilities and investments in R&D. Companies with cutting-edge technologies and solutions that have the potential to be innovative will hold better prospects for success within the green hydrogen market.
• Financial Health: You can check a company's financial health by considering key financial metrics such as revenue growth, profit margins, ROE, and debt levels. Companies with robust financials will be better placed to invest in green hydrogen projects for long-term growth.
• Government Policies and Support: Record what effect these policies and government support for the company's green hydrogen initiatives will have. Government incentives and subsidies may be expected to have a large impact on the growth and profitability of such projects.
• Market Demand: Analyze the market demand for green hydrogen and a company's position to deliver on this demand. Companies with more potent market positions would likely do well in the green hydrogen sector but will only thrive if stronger demand for their product arises.

 

Conclusion

Green hydrogen stocks in India present a potential opportunity for you to match your investment portfolios with sustainable and environmentally beneficial ventures. Placing a strategic investment in Green hydrogen stocks can offer higher returns. Open a free demat account today with Almondz Trade to invest in the best Green hydrogen stocks India.