Best Green Hydrogen Stocks in India (2024)

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Last Updated on May 10, 2024 by Srishti Mathur

India has set its sights on becoming energy-independent by 2047 and achieving Net Zero by 2070. To achieve these ambitious goals, the country is increasingly turning to green hydrogen energy. This clean, sustainable fuel source is poised to play a pivotal role in India’s energy landscape. In this blog, we’ll delve into the world of green hydrogen and explore why investing in green hydrogen stocks is not just a financial opportunity but also a way to support India’s journey toward a greener and more sustainable future.

In this article, let’s explore the best green hydrogen stocks in India, factors to consider before investing, challenges in the industry, how to invest in green hydrogen companies in India, and more.

Table of Contents

Best green hydrogen stocks in India 2024

Name	Sub-Sector	Market Cap (Rs. in cr.)	Close Price (Rs.)	PE Ratio	Fundamental Score	5Y Avg Return on Investment (%)
Oil and Natural Gas Corporation Ltd	Oil & Gas – Exploration & Production	3,54,700.97	281.95	10.01	10.00	10.80
Reliance Industries Ltd	Oil & Gas – Refining & Marketing	1,975,546.70	2,919.95	28.38	7.71	18.57
Bharat Petroleum Corporation Ltd	Oil & Gas – Refining & Marketing	1,30,892.71	603.40	61.42	5.65	10.99
Indian Oil Corporation Ltd	Oil & Gas – Refining & Marketing	2,40,343.48	170.20	24.54	5.57	10.83
Jindal Stainless Ltd	Iron & Steel	60,086.02	729.70	28.42	5.45	80.68
JSW Energy Ltd	Power Generation	1,05,478.09	604.70	71.38	5.44	54.07
NTPC Ltd	Power Generation	3,48,304.25	5.16	20.59	5.11	-47.78
Adani Green Energy Ltd	Renewable Energy	2,87,129.65	1,812.65	294.79	4.83	110.56
Gail (India) Ltd	Gas Distribution	1,36,761.66	208.00	24.35	4.25	12.71
Larsen & Toubro Ltd	Construction & Engineering	5,02,070.22	3,652.30	47.95	4.17	21.93

Note: The stocks are sorted using the Fundamental Score (high to low) on the Tickertape Stock Screener, and the data is from 25th April, 2024. We have used the following parameters:

Fundamental Score (high to low)

5Y Avg Return on Investment

Fundamental score: It is a smallcase proprietary score between 1 and 10 assigned to stocks listed on the NSE. The score helps rank the stock over other stocks in the respective sector. The higher the score, the better the company. The score is calculated considering factors like valuation, profitability, market share growth, financial health and earnings growth of the company.

Green Energy smallcases

You can consider investing in green energy smallcase portfolios as part of your investment strategy. smallcases are curated baskets of stocks and exchange-traded funds (ETFs) that align with a specific theme, objective or investment strategy. These green energy smallcases contain stocks and ETFs of companies that are actively involved in the renewable energy sector.

Note: These smallcases are mentioned only for educational purposes and is not meant to be recommendatory. Investors must conduct their own research and consult a financial expert before making any investment decisions.

Details of top green hydrogen companies in India

The details of investments by the top 10 green hydrogen companies based on Fundamental Score are mentioned below.

Oil and Natural Gas Corporation Ltd

Maharatna ONGC is India’s largest crude oil and natural gas Company, contributing around 71% to Indian domestic production. The company plans to invest around Rs. 800 bn-850 bn ($9.6 bn – 10.2 bn) to develop a green ammonia production capacity of two million tonnes annually by 2035. This includes two projects, each aiming to produce one million tonnes per year, collaborating with partners like Greenko.

The company, as of 25th April 2024, had a market capitalisation of Rs. 3,54,700.97 cr. The green hydrogen share price India is Rs. 281.95 with a 8.84% 5-yr CAGR. The fundamental score of the stock is 5.705.

Reliance Industries Ltd

Chairman and Managing Director of Reliance Industries Ltd, Mukesh Ambani, said in the Annual General Meeting of 2022 that RIL is mapping its way to transition from the production of grey hydrogen to the production of green hydrogen by 2025. In continuation, the company introduced India’s first-ever hydrogen-run truck, which was developed in partnership with Ashok Leyland.

The company, as of 25th April 2024, had a market capitalisation of Rs. 19,75,546.70 cr. with a stock price of Rs. 2,919.95. Reliance Industries Ltd 5-yr CAGR is 18.57%. The fundamental score of the stock is 7.71.

Bharat Petroleum Corporation Ltd (BPCL)

In 2021, BPCL collaborated with Bhabha Atomic Research Centre (BARC) to scale up Alkaline Electrolyser technology for Green Hydrogen production. BPCL is expected to rise to 1,000 MW by 2027 using only renewable sources, including green hydrogen.

As of 25th April 2024, the company’s market capitalisation is 1,30,892.71 cr. with a stock price of Rs. 603.4. Bharat Petroleum Corporation Ltd 5-yr CAGR is 40.89%. The fundamental score of the stock is 5.65.

Indian Oil Corporation Ltd

Indian Oil Corporation Limited is involved in the refining business. The company’s divisions comprise the Sale of Petroleum Products, Sale of Petrochemicals, and other operations.

As of 25th April 2024, the company’s market capitalisation is Rs. 2,40,343.48 cr. with a stock price of Rs. 170.20. Indian Oil Corporation Ltd’s 5-yr CAGR is 18.29%. The fundamental score of the stock is 5.57.

Jindal Stainless Ltd

Jindal Saw Limited manufactures stainless steel and offers a range of products, such as slabs, blooms, hot-rolled (HR) coils, cold-rolled (CR) coils, plates, coin blanks, precision strips, blade steel, and stainless steel plumbing materials.

On 25th April 2024, the company’s market capitalisation was Rs. 3,48,304.25 cr. with a stock price of Rs. 729.70. NTPC Ltd’s 5-yr CAGR is -47.78%. The fundamental score of the stock is 5.45.

JSW Energy Ltd

JSW Energy Limited is a comprehensive power company primarily focused on generating and selling electricity.

The company, as of 25th April 2024, had a market capitalisation of Rs. 1,05,478.09 cr. with a stock price of Rs. 604.7. JSW Energy Ltd’s 5-yr CAGR is 54.07%. The fundamental score of the stock is 5.44.

NTPC Ltd

NTPC Limited is involved in electricity generation and the bulk sale of power to state power utilities. As of 25th April 2024, the company’s market capitalisation was Rs. 3,48,304.25 cr. with a stock price of Rs. 5.16. NTPC Ltd’s 5-yr CAGR is -47.78%. The fundamental score of the stock is 5.11.

Adani Green Energy Ltd

Adani Green Energy, a power generation enterprise, specialises in constructing and managing solar and wind energy facilities across India. On 25th April 2024, the company’s market capitalisation was Rs. 2,87,129.65 cr. with a stock price of Rs.1,812.65. Adani Green Energy Ltd’s 5-yr CAGR is 110.56%. The fundamental score of the stock is 4.83.

Gail (India) Ltd

GAIL (India) Limited is an integrated energy company operating within the hydrocarbon sector. The products are natural gas marketing and transmission, petrochemicals, and the production of liquid hydrocarbons such as LPG, propane, and naphtha.

The company, as of 25th April 2024, had a market capitalisation of Rs. 1,36,761.66 cr. with a stock price of Rs. 208. Gail (India) Ltd’s 5-yr ROI is 12.71%. The fundamental score of the stock is 4.25.

Larsen and Toubro Ltd

Larsen & Toubro Limited provides technology, engineering, construction, manufacturing, and financial services. The company, as of 25th April 2024, had a market capitalisation of Rs. 5,02,070.22 cr. with a stock price of Rs. 3,652.3. Larsen and Toubro Ltd’s 5-yr CAGR is 21.93%. The fundamental score of the stock is 4.17.

What is green hydrogen?

Green hydrogen, produced through the electrolysis of water using renewable energy sources like solar or wind power, is distinct in terms of minimal environmental footprint. Being produced through the electrolysis of water using renewable energy sources like solar or wind power, green hydrogen distinguishes itself in terms of minimum environmental footprint. The clean energy carrier stands indispensable in places where electrification is difficult and thus forms a cornerstone in India’s energy transition.

Future of green hydrogen energy in India

India aims to achieve carbon neutrality by 2070, but as its economy grows, its demand for energy and resources is expected to rise. Energy demand has already doubled over the past two decades, and it is projected to increase by at least 25% by 2030.

More than 40% of India’s primary energy needs, which cost over $90 bn annually, are met through imports. Furthermore, industries such as transportation and manufacturing depend heavily on the fossil fuels that are imported. Therefore, there is a need for technology that can increase the use of renewable sources in the energy mix and gradually reduce reliance on fossil fuels.

National Green Hydrogen Mission – one of the Budget 2023 – 2024 highlights. The Government of India sanctioned Rs. 19,744 cr. towards the mission and plans to increase its annual green hydrogen production to 5 mn tonnes by 2030. The Government also plans to reduce dependence on fossil fuel imports and cut greenhouse gas emissions by nearly 50 mn tonnes. The eventual goal is to turn the country into a hub for green hydrogen production to meet global renewable energy demands.

Green hydrogen will considerably reduce carbon emissions that emanate from the heavy industrial sectors and the transportation sector. It gives a fossil-based fuel alternative that will help humankind globally with the reduction of their carbon footprint upon adherence to those sustainable development objectives.

Factors to consider before investing in green hydrogen energy stocks in India

Growth prospect: The Government of India is constantly trying to save the environment by replacing fossil fuels with green energy under several missions. And green hydrogen energy is considered a viable and sustainable alternative energy resource. Moreover, in the 2023 budget, the Government announced the National Green Hydrogen Mission. All of this collectively indicates good potential in the sector for the long term.
Evergreen stocks: While the Government is putting efforts into promoting green energy, the companies that invest in green energy are evergreen. Further, there has been a proliferation of energy-efficient appliances, including solar water heaters, wind turbines, geothermal heat pump systems, hydropower, and others. Companies that manufacture such appliances are expected to remain in high demand.
ESG investing: As a result of the rising demand for sustainable living and investing, Environmental, Social, and Governance (ESG) investing is rising. Everyone always likes companies that make a conscious effort to save the environment.
Profits are in the future: Most of the conversation around green hydrogen energy revolves around the industry’s future potential and returns, which can also indicate future profits. Hence, consider doing your own analysis of the green hydrogen energy industry and stocks.
Technological Advancement: Companies involved in green hydrogen often invest in advanced technologies like electrolysis techniques to enhance the production process. These innovations reflect the dedication of hydrogen fuel companies in India that will drive growth in the green hydrogen sector.

Though the hydrogen fuel stocks in India look attractive, it is wise to make a decision while keeping in mind one’s current financial situation, future financial goals/plans, and the advice of a financial advisor.

Features of green hydrogen stocks

Here are 5 key features of green hydrogen stocks – India.

Renewable production methods: Green hydrogen stocks in India stand out due to their commitment to environmentally friendly production methods. They utilise electrolysis powered by renewable energy sources like solar and wind, distinguishing them from conventional hydrogen production.
Carbon neutrality: A defining feature of green hydrogen stocks in India is their dedication to carbon neutrality. Companies in this sector aim to minimise or completely offset their carbon footprint, contributing to global efforts to combat climate change and making them a sustainable investment choice.
Technological innovation: Green hydrogen stocks in India prioritise cutting-edge technologies. They invest in advanced electrolysis techniques, efficient storage solutions, and scalable production methods, positioning themselves at the forefront of hydrogen fuel innovation within the Indian market.
Strategic partnerships: Successful players in the Indian green hydrogen sector often forge strategic partnerships with energy companies, governments, and technology providers. These collaborations enhance the scalability and viability of green hydrogen initiatives, creating opportunities for growth and profitability.
Policy and regulatory environment: The regulatory landscape significantly impacts the green hydrogen energy stocks in India. Investors need to be aware of supportive policies, subsidies, and regulatory frameworks as they can influence the long-term viability and growth potential of green hydrogen-related stocks in India’s evolving energy market. Understanding the market dynamics, including supply and demand trends, competition, and pricing dynamics, is essential for making informed investment decisions in this burgeoning sector.

Benefits of investing in green hydrogen stocks

There are various advantages of investing in green hydrogen stocks. Here are 5 key benefits.

A greener future: By investing in green hydrogen stocks, you’re supporting a cleaner and more sustainable energy future. It’s like putting your money where your values are, helping reduce pollution and combat climate change.
Potential for long-term gains: Imagine planting a tree today that could grow into a thriving forest tomorrow. Investing in green hydrogen stocks offers the potential for long-term growth as the world increasingly embraces cleaner energy solutions.
Diversify and protect: Just like having a variety of fruits in your basket, adding green hydrogen stocks to your investment portfolio can diversify your holdings and reduce risk. It’s a way to spread your bets and increase your financial resilience.
Riding the energy transition wave: Picture catching a wave at the right moment. Investing in the best green hydrogen stocks in India, lets you ride the wave of the global shift towards cleaner energy sources, potentially riding it to financial success.
Joining the clean energy movement: When you invest in hydrogen producing companies in India stocks, you’re not just chasing profits; you’re participating in a movement to create a better, more sustainable world. It’s an investment that aligns with your values and contributes to a positive impact on the environment.

How to invest in green hydrogen stocks in India?

A diversified investment approach in the green hydrogen sector can be a wise decision. Investment in both established companies and emerging startups may prove helpful in balancing the risk-reward ratio. It would also remain a prudent step if they continuously stay vigilant about the market trends and Government policies so as to take timely decisions based on proper assessment of such information. It is always worthwhile to consult a financial advisor before making any investment decision for your portfolio.

To list the best stocks in the green hydrogen sector on Tickertape, follow the below-mentioned steps.

Step 1: Go to the Stock Screener.

Step 2: Click on ‘+ Create’ in ‘Stock Universe’.

Step 3: Add all the stocks mentioned in the articles and more which are related to the green hydrogen sector.

Step 4: Add over 200 filters to sort the stocks based on your preference.

Challenges in the green hydrogen industry in India

Technological and infrastructural challenges: India’s lack of technological advancement and infrastructure is the real constraint on large-scale production and distribution of green hydrogen. Building such infrastructure can create opportunities for the sector to flourish.
Economic and regulatory constraints: The second challenge arises from the overly high setup costs of green hydrogen plants and supportive regulatory frameworks. Nonetheless, these can also be turned into opportunities if the right set of economic policies and regulatory support are put in place.

Conclusion

The green hydrogen energy sector seems promising for the long term. However, consider the uncertainty and future promise of profits before investing in these stocks. It is always worthwhile to take the help of a financial advisor and do your own research as well. Tickertape Stock Screener can help you keep track of all the green hydrogen energy stocks. You can add all the stocks you want to track to your watchlist. Alternatively, you can add them to a ‘Stock Universe’ and keep them separate from the other stocks you track. Try it now!

FAQs about green hydrogen India

What companies make green hydrogen in India?

Here are the top 10 companies that invest in green hydrogen energy in India:

– Reliance Industries
– GAIL (India)
– National Thermal Power Corporation Limited (NTPC)
– Indian Oil Corporation
– Larsen & Toubro
– Adani Green Energy
– JSW Energy
– Jindal Stainless
– Oil & Natural Gas Corporation (ONGC)
– Bharat Petroleum Corporation

What is the best hydrogen stock to invest in?

As of 29th January 2024, the top 5 green hydrogen energy stocks based on the Fundamental score are:

– Oil and Natural Gas Corporation Ltd
– Reliance Industries Ltd
– Bharat Petroleum Corporation Ltd
– Indian Oil Corporation Ltd
– Jindal Stainless Ltd

A fundamental score is a smallcase proprietary score between 1 and 10, which is assigned to stocks listed on the NSE. The score helps rank the stock versus all other stocks in the respective sector. The higher the score, the better the company.

Who is the largest producer of green hydrogen?

According to the World Economic Forum, China consumes and produces more hydrogen than any other country – its current annual usage is more than 24 mn tonnes. More than 30 projects involving “green” hydrogen – created using emissions-free renewable energy – have been set up since 2019 in the country.

How much is the demand for green hydrogen in India?

More than 6 mn tonnes of hydrogen is used by India every year to produce ammonia and methanol for industrial purposes. It is assumed that India’s demand for hydrogen will increase five-fold, and consumption of hydrogen is expected to surge by 28 mn tonnes by 2050.

What is green hydrogen used for?

Green hydrogen is mainly used in the chemical industry for the manufacturing of ammonia and fertilisers. It is also used in the petrochemical industry for the production of petroleum products.

How is green hydrogen made?

Hydrogen produced by splitting water by electrolysis is green hydrogen. This process only produces hydrogen and oxygen. Green hydrogen can be utilised, and the oxygen can be vented out into the atmosphere without any negative impact.