The world is slowly moving towards sustainable solutions for everything, even energy. Subsequently, the renewable energy sector has grown significantly over the past year, with over 15 Indian renewable energy stocks jumping more than 100%.
The demand for sustainable solutions for everything, including energy, has increased worldwide. Many businesses are taking the initiative to make the Earth a healthier place to live. The Indian government, too, has extended its support by allocating a larger budget for the renewable energy sector. More development and a higher investment budget suggest a rise in the prices of green energy stocks. As a result, investors eyeing a profit can invest in green energy stocks in India in 2024.
The pressure to shift towards sustainable energy sources has increased in recent years due to growing worries over climate change and the loss of fossil fuels. India, as one of the fastest-growing countries in the world, has understood the importance of accepting green energy options. In 2024, the country is expected to experience a significant rise in investments and efforts aimed at supporting green energy sources. Consequently, investors are increasingly moving their attention towards green energy stocks, which offer good growth possibilities and possible long-term gains. This piece explores the top green energy stocks in India for 2024, giving insights into the industry’s environment and business possibilities.
What are Green Energy Stocks?
Green energy stocks represent companies developing alternative technologies using renewable resources like sunlight, wind, heat, low-impact hydroelectric sources, and certain forms of biomass. These companies aim to minimise pollution and carbon emissions while reducing reliance on fossil fuels. Investing in green energy stocks in India can be a good idea if you want to be a part of the renewable energy sector in India and in case it aligns with your investment objective.
Green energy stocks are companies involved in developing alternative technologies with renewable resources that emit little to no pollution. The most prevalent sources of green energy include sunlight, wind, and heat. They can also include low-impact hydroelectric sources and specific forms of biomass. Companies that work towards creating no carbon emissions with these resources and reducing the use of fossil fuels are considered green energy companies.
Types of Green Energy Stocks:-
- Solar Energy Stocks
- Clean Energy Stocks
- Energy economy Stocks
- Hydroelectric Stocks
- Biofuel Stocks
- Wind Energy Stocks
- Geothermal Energy Stocks
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List of Top Green energy stocks in India:-
1. Adani Green Energy Limited:
The company was established on January 23, 2016. It was listed on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) in 2017.
Adani Green Energy Ltd. (AGEL) is a part of the Adani Group and is engaged in renewable power generation and other ancillary activities. AGEL develops, builds, owns, operates and utilises utility-connected solar power, wind power and hybrid projects. It currently has its presence across 91 locations in India.
Adani Green Energy Limited (AGEL) is a renewable energy business based in Ahmedabad and part of the Adani Group. Founded by Gautam Adani in 2015, AGEL operates the Kamuthi Solar Power Project, one of the world’s largest solar photovoltaic plants. Over the last five years, the company’s revenue has grown at a yearly rate of 38.22%, higher than the industry average of 11.33%. The company’s market share increased from 9.82% to 29.25% in the same period.
2. Suzlon Energy Limited:
Suzlon Energy Ltd is a major player in India’s wind energy sector, renowned for its wind turbine technology and significant contributions to the country’s renewable energy capacity.
Suzlon Energy is a world leader in the wind energy business and is based in India. The company makes and provides wind blades, as well as giving end-to-end options for wind farm growth and running. Suzlon Energy has a strong foothold in both local and foreign markets and is continuously spending on research and development to improve its product lines.
Over the past five years, market share has risen from 53.11% to 74.61%. During this period, revenue has grown at an annual rate of 0.15%, in stark contrast to the industry average of -6.83%. In the last three months, foreign institutional ownership of the company has increased by 1.74%. An evaluation of this wind energy stock on the Tickertape Scorecard reveals that the company is demonstrating exceptional performance and profitability.
3. K.P. Energy Ltd:
KP Energy is a small-cap green energy company in India that builds windmill infrastructure to develop geothermal energy. The performance of this green energy stock has demonstrated growth at a yearly rate of 49.06% over the last 5 years, in comparison to the industry average of 10.91%. This is one of India’s highest recorded growths among the other green energy stocks.
KP Energy’s market capitalisation was worth Rs. 2,414 crore, and its closing share price was Rs. 362.05 on April 5, 2024.
Furthermore, the stock has gradually increased its market share from 0.3% to 1.31% during the same period. Based on a 5-year return on investment, it is also one of India’s top renewable energy stocks, as demonstrated on our renewable energy stocks India list.
KP Energy Ltd. is an Indian-based energy company. It engages in the development of wind power projects, wind farm development, and associated allied services, along with electricity generation through wind power generating assets. It was incorporated in 2010 and has headquarters in Surat, India. The company operates as a subsidiary of KP Group and drives sustainable solutions for a greener tomorrow.
4. Tata Power Ltd:
Tata Power is an India-based power generation, transmission, and distribution company. Its current power generation sources include a mix of both thermal and hydro.
The company along with its subsidiaries and joint entities has a power generation capacity of 14,690 MW. Out of the total electricity generated 39% comes from clean energy sources. Furthermore, the company has set goals to increase the contribution of its clean and green energy portfolio to 60% of its total generation capacity. Off late the company has also taken steps to aid the consumption of greener energy in the EV sector by targetting the installation of more than 1 lakh EV chargers by 2025.
5. BF Utilities Ltd:
BF Utilities Ltd is a holding company based in India. BF Utilities Ltd. is a small-cap wind energy stock established in India in 2000. It is principally engaged in generating electricity through renewable energy: windmills and infrastructure.
Over the last five years, this company has experienced revenue growth of 13.5%, which is higher than the industry average of 10.91%. Additionally, the company’s market share has gradually increased from 2.07% to 2.29% during the same period. Analysing the company’s Tickertape Scorecard, we can see that it shows positive signs of profitability and efficiency, with a score of 9.7/10 in ROE and 9.8/10 in cash flow, respectively.
6. ReNew Power Private Limited:
ReNew Power is a significant player in the Indian green energy field, with a diverse collection of wind and solar power projects. The company has lofty growth plans and is well-positioned to capitalize on the growing demand for clean energy. ReNew Power has a strong focus on technological innovation and has worked with top foreign companies to create cutting-edge green energy solutions.
7. Orient Green Power Company Limited:
Orient Green Power Company Ltd is an Indian stock holding that produces renewable energy using wind as an energy source. This smallcap company has a market capitalisation of Rs. 2,049 cr. It is showing good signs of profitability and efficiency, with a score of 10/10 in terms of cash flow and a high score of 8.1/10 in terms of profit on the Tickertape Scorecard.
Orient Green Power is a major green energy company in India that focuses on wind and wood power creation. The company has a significant footprint across several states and is constantly growing its green energy business. Orient Green Power has a strong focus on sustainable practices and has adopted new technologies to improve its operating efficiency.
Orient Green Power Company Ltd is India’s leading green energy company focused on wind power generation. Established in 2006, it manages a portfolio of over 402 MW wind assets across several Indian states and even has a wind farm in Croatia. It aims to expand its renewable energy projects and contribute to sustainable development. The company’s net profit margin is 12.93%, and its cash flow margin is 83.99%.
8. Waaree Energies Limited:
Waaree Renewables Technologies business focuses on using renewable energy to generate power. The company is mainly focused on using solar energy to generate power and also provides several solar products and solutions. Waaree Renewables is also India’s largest solar panel manufacturer.
Waaree Energies is a major maker of solar photovoltaic panels and a source of solar power options. The company has a strong foothold in the Indian market and is growing its global reach through intelligent partnerships and deals. Waaree Energies has a strong focus on research and development, hoping to build new and cost-effective solar solutions.
9. SJVN Ltd:
SJVN Ltd, formerly known as Satluj Jal Vidyut Nigam, is an Indian PSU company that produces and transmits hydroelectric power. This midcap stock has recently experienced a decrease in market share from 13.28% to 9.74% over the past five years. Notwithstanding, the Tickertape Scorecard for this green energy company exhibits a positive trend in its performance and profitability, with a 9.8/10 profit score and a cash flow score of 9.2/10.
SJVN Ltd is a major Indian government-owned renewable energy company in India in the hydropower sector. Founded in 1988, it’s known for operating India’s largest hydropower plant (Nathpa Jhakri) and has a total hydropower capacity exceeding 1900 MW. It is a mid-cap green energy stock in India. Present in the renewable energy share list, the company has also diversified into wind and solar power generation with a growing portfolio. The company’s net profit margin is 30.79%, and its cash flow margin is 49.54%.
10. NTPC (National Thermal Power Corporation):
NTPC with its subsidiaries is mainly involved in the generation and transportation of electricity to state power utilities. Other arms of the business deals in project management & supervision, consultancy, energy trading, oil and gas exploration and coal mining.
NTPC is determined to make its energy portfolio greener with its subsidiary NTPC green energy Ltd. With its green arm NTPC plans to plans to have a minimum of 32,000 MV capacity with the help of renewable energy sources.
The company currently plans a capital expenditure of 10,0000 Cr. on renewable energy this year and will further increase this to Rs.15,000 to 20,000 Cr. next year. Furthermore, NTPC also plans to list its green energy subsidiary in the Indian stock market through an IPO in the financial year 2025. Let’s have a closer look at its financials.
Benefits of Investing in Green Energy Stocks in 2024
- The government has introduced new initiatives that propel the green energy sector upward. As a result, many green energy stocks have fared relatively well, with many stocks recording double-digit growth.
- By investing in green energy stocks, buyers can match their financial goals with their values and help the fight against climate change and ecological damage.
- Adding green energy stocks to an investment portfolio can provide diversification benefits, as the renewable energy sector often follows different market cycles and trends compared to standard energy sectors.
- Green energy is produced from sources such as solar, wind, and hydro, which are eco-friendly. As India aims to reduce the projected carbon emissions by one billion tonnes by 2030, adopting green energy is a pivotal step towards minimising carbon emissions.
- The green energy sector is likely to experience a significant increase in the coming years as countries move towards safe energy sources. Investors who discover and invest in potential green energy companies early on may benefit from substantial long-term profits.
- With global governments rolling out incentives and subsidies, green energy stocks stand out as appealing investment avenues. Adding green energy stocks to your portfolio can minimise the risk associated with your portfolio.
- The green energy sector is likely to experience a significant increase in the coming years as countries move towards safe energy sources. Investors who discover and invest in potential green energy companies early on may benefit from substantial long-term profits.
How to Invest in Green Energy Stocks?
- Direct stock purchases through brokers or online trading platforms: Investors can purchase shares of individual green energy companies directly through stockbrokers or online trading platforms. This method allows for better control and modification of the investment strategy.
- Investigate the top 10 green energy stocks to understand their market positions. Investors may choose clean energy stocks based on their investment objectives and risk appetite. Green energy stocks can range mostly from mid-cap to high-cap with differing potential returns and risk profiles.
- There are a number of ways by which you can invest in renewable energy—stocks, mutual funds, and ETFs. To discover renewable energy stocks in India, use Tickertape’s Stock Screener and select the ‘renewable energy’ as the sector. Additionally, you can use other parameters that matter to you; they can be net income, total debt, and more.
- Participation in Initial Public Offerings (IPOs) of promising green energy companies: Investors can consider engaging in the IPOs of promising green energy companies that are going public. This provides a chance to invest in the company at an early stage and gain from future growth.
- Tickertape Stock Screener empowers you to craft a personalised ‘Custom Universe’ for streamlined analysis of renewable energy stocks. With over 200 filters, tailor your criteria to refine your list effortlessly. Additionally, investors may utilise the ‘Custom Filter’ option to craft your unique parameters. Begin building your green energy universe today for insightful analysis!
Green Energy vs Renewable Energy:-
Green energy refers to renewable energy sources that produce minimal pollution. While people often use “green energy” and “renewable energy” interchangeably, there’s a crucial distinction. While all green energy sources are renewable, not all renewable sources are entirely green. For instance, solar power is both green and renewable, while burning wood is renewable but not green, as it contributes to air pollution. Green energy is a subset of renewable energy.
For example, solar power is a green and renewable energy; burning wood is renewable because you can grow more trees, but it is not green, as it pollutes the atmosphere. Green energy is a subset of renewable energy.