According to CNBC TV18, Sumit Kishore, Managing Director of Power & Infrastructure at Axis Capital, cautioned investors against purchasing stocks solely based on green hydrogen ambitions. Speaking on a CNBC-TV18 Energy Forum panel, Kishore argued that the green hydrogen segment remains too small a component of listed companies' overall businesses to justify such investments. Instead, he recommended focusing on broader clean energy companies, specifically highlighting Tata Power, Torrent Power, CESC and L&T as preferred investment options.
As reported by CNBC TV18, India has set a target of scaling up green hydrogen production to about 5 million tonnes per annum by 2030, but progress has been limited. The economic viability remains questionable, with grey hydrogen remaining far cheaper at roughly ₹150–200 per kg, while the lowest commercial price discovered for green hydrogen in the country stands at about ₹279 per kg, even with government incentives factored in. This significant price gap continues to challenge the widespread adoption of green hydrogen technology.
According to the report, Kishore highlighted the robust power demand growth this fiscal, running at 9%, alongside a record 51 gigawatts of renewable capacity added last year. Of this capacity addition, 45 GW was solar and 6 GW was wind. With similar annual additions of 50 GW or more projected over the coming decade, several listed companies are positioned for mid-teen EBITDA compounding. Among his preferred names were Torrent Power, CESC and Tata Power, which he noted also stand to benefit from the upcoming Electricity Amendment Bill expected to be taken up in the next few weeks.
As reported by CNBC TV18, Kishore provided specific examples of companies' green hydrogen exposure. He noted that Larsen & Toubro has green hydrogen operations that remain a very small piece of the company's overall business, despite tracking the stock favorably. Similarly, while electrolyser manufacturers including Waaree and Reliance Industries are active in the green hydrogen segment, it still doesn't form a large enough chunk of their market capitalisations to warrant an investment case built solely around it.
