Best Green Hydrogen Shares in India 2024

Green hydrogen stocks represent companies that produce, store, and transport green hydrogen. Green hydrogen is a clean-burning fuel created by splitting water molecules using renewable energy sources such as solar and wind power. India's green hydrogen energy stock industry aims for energy independence by 2047 and net zero emissions by 2070. Green hydrogen is produced via electrolysis, using renewable energy like solar and wind power to split water into hydrogen and oxygen. This clean fuel can replace fossil fuels and reduce pollution. The demand for green hydrogen is growing as it has the potential to decarbonise sectors like transportation, shipping, and steel production. In this blog, we will explore some of the best green hydrogen stocks, also we will go through green hydrogen companies stock overview.

What are Green Hydrogen Stocks in India?

India's green hydrogen sector is gaining momentum as the country aims for energy independence. Green hydrogen is produced through electrolysis, using renewable energy like solar and wind power to split water into hydrogen and oxygen. This clean fuel can replace fossil fuels and reduce pollution. India launched a National Green Hydrogen Mission in 2022, aiming for a 5MMT annual production capacity and an additional renewable energy capacity of around 125 GW. The Union Budget of FY 2024-25 has allocated a 102% increase from the previous budget.

Best Green Hydrogen Stocks in India 2024 

As the need for renewable energy solutions like green hydrogen increases, the number of companies involved in this industry is growing. Let's take a look at the most popular green hydrogen share list
 

Disclaimer: This list of green hydrogen stocks contains data updated as of 18th April 2024. However, it's important to conduct detailed research before making any investment decisions in these stocks.

Top Green Hydrogen Companies in India: An Overview

Here is a quick review of the top green hydrogen firms in India listed above.

Reliance Industries

Reliance Industries was founded in 1958. Its net profit for the last three quarters stands at Rs. 9,641 Cr. Its current market price is Rs. 2,931.50. The company is planning to invest heavily in green hydrogen generation in the coming years. It is currently building a 1 GW green hydrogen factory in Jamnagar, Gujarat, and wants to make it operational in a year. This facility will rely on renewable energy sources to operate its electrolysers, which produce hydrogen.  

GAIL (India)

This public-sector firm was established in 1984. Presently, the stock price is Rs. 2,931.50. GAIL (India) Ltd., founded in 1984, is a large-cap business (market capitalisation of Rs 135,315.55 crore) in the Gas and petroleum industry. In the last quarter ending December 31, 2023, the firm reported a Consolidated Total Income of Rs 35,111.76 crore. The company declared a net profit after tax of Rs 2,692.39 crore.

GAIL is building a green hydrogen factory at Hazira, Gujarat, with an output capacity of 4.3 tonnes daily. The hydrogen generated here will be combined with natural gas for transportation and industries. In the last 12 months, the operating income of Gail (India) has increased significantly. The return on equity (ROE) also may improve going forward.  

Indian Oil Corporation

Indian Oil Corporation (IOL) was incorporated on June 30, 1959. It is a large-cap business (market capitalisation of Rs 231,800.13 crore) in the Gas and petroleum industry. For the quarter ending December 31, 2023, the firm reported a Consolidated Total Income of Rs 201,173.88 crore and a net profit after tax of Rs 8,577.14 crore. 

It is establishing a plant in Panipat, Haryana, with 10 tons/day capacity. The goal is to have this plant operational by 2025. The hydrogen produced will be used as fuel for hydrogen fuel cell vehicles. In the previous 12 months, Indian Oil Corporation produced an outstanding operational revenue, representing a significant annual growth rate. The pre-tax margin and the return on equity (ROE) are reasonable. It can also prove to be one of the top green hydrogen companies’ stocks this year.

Power Grid Corporation of India (PGRD)

Power Grid Corporation of India was founded on 23rd October 1989. Its stock price is Rs. 751.70, with a market capitalisation of Rs. 6,70,863.08. For the quarter ending December 31, 2023, the firm reported a Consolidated Total Income of Rs 11,819.70 Crore, up 2.51% from the previous quarter's Total Income of Rs 11,530.43 Crore and up 2.51% from the same quarter last year at Rs 11,530.22 Crore. In the previous quarter, the company declared a net profit after tax of Rs 4,066.16 crore. 

It has generated impressive operating revenue in recent times. The annual revenue growth, pre-tax margin, and the return on equity (ROE) are quite good. The public sector company may have a very good share price for green hydrogen in 2024.

Adani Green Energy Limited

Adani Green Energy was founded in 2015. Its current share price is Rs. 1811.65, and the market capitalisation is Rs. 2,86,971.24. It has achieved amazing operational income in recent years. The pre-tax margin is substantial, suggesting good financial success. Additionally, the return on equity (ROE) is strong. It is one of the top hydrogen green energy stocks in India for 2024. 

Adani Total Gas Limited

Adani Total Gas is a part of the Adani Group of companies founded in 1988. Its current share price is Rs. 1,304.35. It has a solid trailing 12-month operating revenue. Notably, the firm has grown its yearly revenue significantly while maintaining a solid pre-tax margin. In the last 12 months, Gail (India) achieved an amazing operating income of Rs. 134,865.45 crore. The 56% yearly income increase is notable. However, there is space to improve the pre-tax margin, which is now at 4%. The ROE is now 8%, however there is room for improvement. 

Adani Transmission Limited

Adani Transmission Limited was founded on 2nd December 2013. The firm's current share price is Rs. 992.80, and its market capitalisation is Rs. 3,63,435.22. The firm specialises in engineering, construction management, operation, and maintenance. Its businesses include engineering, procurement, and construction (EPC) and utilities.

Adani Power

Adani Power, founded on 22nd August 1996, had a very good revenue growth last year. Its present share price is Rs. 3106.40. Adani Power (NSE) achieved Rs. 42,002.59 crore in operational revenue during the previous 12 months. Notably, the firm generated a spectacular 36% annual sales growth, a robust pre-tax margin of 20%, and an extraordinary ROE of 65%. The firm had a 36% growth in annual revenue. The pre-tax margin is also quite high at 20%. The return on equity (ROE) was 65%.

Factors to Consider Before Investing in Green Hydrogen Companies in India:

Investing in green hydrogen stocks NSE in India or green energy shares might benefit investors. However, it is vital to take into account some key factors. These are the most important ones to consider.

Government Policy:

Green hydrogen generation is still in its earliest phases. Investors should actively monitor government rules governing renewable energy options. In addition, green hydrogen companies may receive different rewards and subsidies.

Demand:

The demand for green hydrogen companies and their growth are critical considerations. Thus, investors should check the demand for green hydrogen company's stocks and assess the long-term prospects of green hydrogen companies.

Financial Performance:

It is critical to assess the financial performance of green hydrogen companies. Investors should thoroughly analyse the company's sales growth, profit margins, and cash flow.

Future Energy Source:

Investors should assess the environmental effect of green hydrogen manufacturing firms. Environmental issues are a major concern these days. So, companies with poor performance in this regard may have to face regulatory action, which impacts their overall performance.

Policy and Regulatory Environment:

The regulatory landscape significantly impacts green hydrogen supplies in India. Awareness of supportive policies, subsidies, and regulatory frameworks is crucial in assessing the long-term viability and development potential of green hydrogen stocks listed on the NSE in India.

Market Dynamics:

Understanding market dynamics is crucial when investing in hydrogen stocks. Global demand, competition, and geopolitical considerations heavily influence green hydrogen stocks' performance.

Features of Green Hydrogen Stocks in India

The following are the main characteristics of green hydrogen stocks. 

Production Methods:

Green hydrogen energy reserves are interesting because they create energy while minimising environmental impact. Electrolysis, which uses renewable energy sources like the sun and wind, is a contemporary technique of producing hydrogen. 

Carbon Neutrality:

Green hydrogen energy stocks in India are distinguished by their dedication to carbon neutrality. Companies try to reduce or offset their carbon footprint, contributing to global efforts to tackle climate change.

Technological Innovation:

Green hydrogen stocks in India frequently invest in cutting-edge technology. Advanced electrolysis processes, effective storage solutions, and scalable production methods are new-age methods of producing green hydrogen.

Strategic Partnerships:

Successful green hydrogen stocks generally partner with energy businesses, governments, and technology suppliers. This improves the feasibility of green hydrogen projects.

What are the Advantages of Adding Green Stocks?

The advantages of investing in green hydrogen are as follows.

Clean Environment in the Future:

Investing in green hydrogen stocks contributes to cleaner, more sustainable energy. Your investments may help to reduce environmental pollution and prevent climate change. 

Long-Term Gains:

Investing in green hydrogen stocks has the potential for long-term development as the globe shifts toward greener energy solutions.

Portfolio Diversification:

Adding green hydrogen share to your investing portfolio may diversify your holdings and minimise risk. It's a way to hedge your investments and boost stability.

What are the Challenges Ahead?

Although green hydrogen stocks have many advantages, there are also some challenges.

Technology and Infrastructural Challenges:

India's lack of technological innovation and infrastructure is the primary challenge to the large-scale production of green hydrogen.

High Costs: 

The cost of green hydrogen plants is another major problem. Some people believe that producing green hydrogen is expensive because of the hydrogen technology utilised in the electrolysis process. 

Competition From Fossil Fuels:

Fossil fuels are still cheaper than hydrogen energy. However, growing awareness of their environmental effects may increase the demand for green hydrogen.  

Conclusion
Green hydrogen energy firms may perform well in the future. The need for renewable energy sources will increase as the energy requirement rises. Green hydrogen is an excellent option as its production methods are quite environmentally friendly. So, investing in green hydrogen stocks can offer long-term gains. However, before investing in these stocks, evaluate the uncertainties and potential for rewards. The high production costs and competition from fossil fuels are some challenges faced by the green hydrogen industry. Hence, proper research and understanding of the overall market are crucial. A good stock trading app shall allow you to keep track of all green hydrogen energy stocks. You may add all the stocks you want to follow to your watchlist.