Orient Green Power was listed on the BSE on October 8, 2010. In the last five years, the company has given a massive return of more than 860% to its investors. Will Orient Green Power continue to provide such great returns in the future as well? Let’s explore Orient Green Power’s growth potential and Orient Green Power share price target from 2025 to 2050 in this article.
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About Orient Green Power
Orient Green Power is an Indian company that generates electricity from renewable sources such as wind and biomass. It was founded in 2006 and is focused on producing clean energy to reduce dependency on fossil fuels. The company operates several wind farms across India and has worked to increase its capacity over the years.
Orient Green Power Business Model
- Wind Energy Generation: OGPL operates wind farms in several Indian states, including Tamil Nadu, Andhra Pradesh, Gujarat, and Karnataka, with a total installed capacity of 402.3 megawatts as of March 31, 2024.
- Biomass Energy Production: The company creates and operates biomass-based power plants that convert agricultural residues and waste into electricity. These plants use materials such as rice husks, straw, and wood chips, which contribute to OGPL’s revenue from the sale of generated power.
- Solar Energy Initiatives: OGPL is expanding into solar energy, with plans to build a 39.6 MW solar capacity in two phases. This diversification aims to enhance revenue by tapping into the growing solar energy market.
- International Operations: OGPL has expanded its international presence, including the operation of a 10.5 MW wind farm in Croatia, Europe.
- Strategic Partnerships: Using partnerships with global and local partners, OGPL gains access to advanced technologies and new markets, increasing its project development capacity and revenue potential.
- Government Incentives: Because OGPL operates in the renewable energy sector, it is eligible for a variety of government incentives and favorable tariff structures, which increases its profitability.
Orient Green Power Fundamental Analysis
| Stock Name | Orient Green Power Ltd. |
|---|---|
| NSE Symbol | GREENPOWER |
| Market Cap | ₹ 1357 Cr. |
| 52W High | ₹ 23.4 |
| 52W Low | ₹ 11.2 |
| Stock P/E | 53.4 |
| Book Value | ₹ 9.51 |
| Dividend Yield | 0.00 % |
| ROCE | 6.97 % |
| ROE | 4.44 % |
| Face Value | ₹ 10.0 |
| Shareholders | Mar 2023 | Mar 2024 | Dec 2024 |
|---|---|---|---|
| Promoters | 32.53% | 29.42% | 24.38% |
| FIIs | 0.01% | 0.48% | 0.74% |
| DIIs | 3.58% | 2.73% | 1.35% |
| Public | 63.88% | 67.36% | 73.53% |
| No. of Shareholders | 4,06,710 | 7,37,750 | 8,97,169 |
Key Factors Driving Orient Green Power’s Future Growth
- Solar Energy Expansion: Orient Green Power is expanding into solar energy, with plans to add 39.6 MW through the company Delta Renewable Energy Private Limited.
- Financial Strengthening: Orient Green Power has reduced its debt from 1,351 crore in FY20 to 767 crore in FY24. The company intends to raise 250 crore through a rights issue to fund solar projects and reduce debt further.
- Operational Efficiency: Orient Green Power is upgrading components on selected windmills to boost power generation and improve operational performance.
- Technological advancements: Orient Green Power’s use of advanced wind turbine technologies increases efficiency and competitiveness in the renewable energy market.
Pros of Orient Green Power
- Strong Profit Growth: Orient Green Power has achieved a strong profit growth of 35% CAGR over the last three years.
- Low P/B Ratio (Undervalued Stock): Orient Green Power has a low Price to Book Value (P/B) ratio of 1.21, which indicates that it is trading close to its intrinsic value and may be undervalued.
- Increase in FIIs Holding: Foreign Institutional Investors (FIIs) have increased their holding to 0.74% in December 2024 from 0.62% in September 2024, which indicates growing confidence in the Orient Green Power future potential by the FIIs.
Cons of Orient Green Power
- Decreasing Sales – Orient Green Power sales is decreasing at a CAGR of -4%. over the last ten Years.
- Low Return on Capital Employed (ROCE): Orient Green Power’s 5-year average ROCE is 7.27%, indicating inefficient use of capital to generate profits.
- Low Return on Equity (ROE): Orient Green Power’s 5-year average ROE is -0.07%, which indicates inefficient use of shareholder funds to generate profits.
- Low Interest Coverage Ratio: The interest coverage ratio of Orient Green Power is 1.35, which shows that the company is struggling to pay interest.
- Low Promoter Holding: Orient Green Power’s promoter holding is 24.4%, which is relatively low. This may indicate low promoter confidence and less control over decision-making.
| Years | Target Price |
|---|---|
| Orient Green Power Share Price Target 2025 | ₹14 to ₹18 |
| Orient Green Power Share Price Target 2026 | ₹16 to ₹24 |
| Orient Green Power Share Price Target 2027 | ₹20 to ₹30 |
| Orient Green Power Share Price Target 2028 | ₹24 to ₹40 |
| Orient Green Power Share Price Target 2029 | ₹30 to ₹50 |
| Orient Green Power Share Price Target 2030 | ₹36 to ₹66 |
| Orient Green Power Share Price Target 2035 | ₹70 to ₹200 |
| Orient Green Power Share Price Target 2040 | ₹144 to ₹600 |
| Orient Green Power Share Price Target 2050 | ₹580 to ₹3600 |
Disclaimer
This article is for educational purposes only. It is not a stock recommendation and should not be treated as such. Please ask your financial advisor before making any investment decision.
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