Last Updated on May 21, 2024 by Harshit Singh
Increasing environmental concerns, government support, and massive investments in the renewable energy sector in India are making it an attractive avenue for investors. Top conglomerates in the space are running at it in full swing, expanding assets and capacities to help achieve India’s 2030 target of reaching 500 GW installed capacity. In the Interim Budget 2024-2025, the government allocated Rs. 10,000 cr. for a grid-based solar power scheme, an increase from Rs. 4,757 cr. in 2023-24. Wind power funding was slightly raised to Rs. 930 cr. in 2024-25 from Rs. 916 cr. the previous year.
In this article, we discuss the overview of the country’s best renewable energy stocks, challenges, prospects, and things to consider while investing in renewable energy stocks in India.
Table of Contents
What are Renewable Energy Stocks?
Renewable energy stocks are shares of companies involved in the production, technology, or services related to renewable energy sources like solar, wind, and hydroelectric power. These stocks represent investment in the transition to cleaner, sustainable energy alternatives to fossil fuels.
Types of Renewable Energy Stocks in India
- Clean energy stocks
Shares of any company related to renewable energy can be a clean energy stock. This includes alternative transportation technologies.
- Solar and wind energy stocks
As the name suggests, these are more focused and associated with solar and wind energy.
- Hydroelectricity stocks
These are companies that use flowing water to generate energy. Currently, hydroelectricity is one of the most popular resources used and is only expected to rise over time.
Best Renewable Energy Stocks in India
| Renewable Energy Stocks in India | Sub-Sector | Market Cap (Rs. in cr.) | Close Price (Rs.) | PE Ratio (%) | 1Y Return (%) |
| Ujaas Energy Ltd | Renewable Energy | 439.75 | 41.75 | -25.11 | 2,041.03 |
| K.P. Energy Ltd | Renewable Energy | 2,995.18 | 471.45 | 51.36 | 626.80 |
| Websol Energy System Ltd | Renewable Energy Equipment & Services | 2,653.16 | 659.85 | -112.00 | 589.09 |
| SRM Energy Ltd | Renewable Energy | 20.36 | 22.91 | -8.93 | 550.85 |
| KPI Green Energy Ltd | Renewable Energy | 11,331.02 | 1,973.10 | 70.09 | 506.36 |
| Zodiac Energy Ltd | Renewable Energy Equipment & Services | 854.82 | 607.55 | 267.13 | 418.18 |
| Suzlon Energy Ltd | Renewable Energy Equipment & Services | 54,742.07 | 42.20 | 19.21 | 411.52 |
| Agni Green Power Ltd | Renewable Energy | 139.03 | 74.70 | 365.86 | 305.98 |
| WAA Solar Ltd | Renewable Energy | 283.79 | 203.20 | 42.80 | 296.49 |
| SJVN Ltd | Renewable Energy | 51,317.12 | 129.30 | 37.75 | 256.20 |
Note: The data is as of 15th May 2024. The list of best renewable energy stocks in India was derived using Tickertape’s Stock Screener using the following filters:
- Category: Renewable Energy and Renewable Energy Equipment & Services
- 1Y Return: Sorted from highest to lowest
🚀 Pro Tip: Select the filter “Dividend Yield” to identify top dividend yielding stocks.
Looking to Invest in Renewable Energy Stocks Selected by SEBI-Registered Analyst?
smallcases are portfolios of thematic stocks created and managed by SEBI-registered analysts. A smallcase allows an investor to diversify its portfolio among the sector. Among 500+ smallcases, the best-performing renewable energy smallcases are as follows –
Note: These smallcases are mentioned only for educational purposes and are not meant to be recommendatory. Investors must conduct their own research and consult a financial expert before making any investment decisions.
Disclosure for Green Energy smallcase
Disclosure for Electric Mobility smallcase
About Top Renewable Energy Stocks in India
Ujaas Energy Ltd
Ujaas Energy Ltd is a prominent renewable energy company in India, known for its focus on solar power solutions and sustainable energy initiatives. Upon evaluating this renewable energy stock on Tickertape Scorecard, the company is showcasing exceptional level of performance, while recording the highest growth among top renewable energy companies in India.
K.P. Energy Ltd
K.P. Energy Ltd is a key player in the renewable energy sector in India, specialising in wind power generation and contributing significantly to the country’s clean energy goals. Among top renewable energy companies in India, K.P. Energy Ltd showcases exceptional levels in performance, growth and profitability on Tickertape Scorecard. Moreover, the company has recorded triple-digit growth in the past year, overtaking some of the large-cap renewable companies in India.
Websol Energy System Ltd
Websol Energy System Ltd is a leading provider of solar energy solutions in India, offering innovative technologies and products for sustainable power generation. Upon evaluating the small-cap renewable energy company on Tickertape Scorecard, the company showcases exceptional performance for the quarter and also the stock is not in the overbought zone.
SRM Energy Ltd
SRM Energy Ltd is a notable player in India’s renewable energy landscape, with a strong emphasis on clean energy projects and environmentally friendly practices. This small-cap renewable energy company is engaged in setting up a thermal power project of 1980 megawatts capacity. In the past year, the stock recorded the growth of 550.85%.
KPI Green Energy Ltd
KPI Green Energy Ltd is an India-based solar power generating company. This forward-thinking renewable energy company in India, dedicated to promoting green energy solutions and fostering a sustainable future. With exceptional score of growth and profitability on Tickertape Scorecard, this company stock prices recorded a growth of 506.36%.
Zodiac Energy Ltd
Zodiac Energy Ltd is a reputable renewable energy firm in India, known for its contributions to the solar and wind energy sectors, driving India’s renewable energy growth. The company provides turnkey solutions from concept to commissioning of power plants. Its services include design, supply, installation, testing and commissioning and operation and maintenance.
Suzlon Energy Ltd
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.
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.
Agni Green Power Ltd
Agni Green Power is a mid-cap renewable energy company engaged in the execution of turn-key solar PV power plant projects. Among other renewable energy companies in India, this stock has achieved triple-digit growth in the past year. Additionally, an evaluation of the stock on the Tickertape Scorecard shows no ‘Red Flags’.
WAA Solar Ltd
WAA Solar Ltd is a notable name in India’s solar energy sector, specialising in solar power generation projects. This small-cap renewable energy company is demonstrating exceptional performance and profitability, despite the stock’s high volatility. Over the past five years, its debt-to-equity ratio has been 78.03%, compared to the industry average of 114.2%. However, on the downside, promoter holding in the company has decreased by 1.29% in the last six months.
SJVN Ltd
SJVN Limited is primarily involved in the generation and sale of power, operating mainly in the thermal power segment. This mid-cap renewable energy company is demonstrating exceptional performance and profitability, despite the stock’s high volatility. On the downside, market share has declined from 13.28% to 9.74% over the past five years. Additionally, revenue has grown at an annual rate of 4.5% over the same period, compared to the industry average of 10.91%.
Overview of the Renewable Sector in India
India’s renewable energy sector is experiencing rapid growth, making it a key player in the global clean energy transition. The country’s renewable electricity capacity is expanding faster than in any other major economy, with projections to double by 2026. India has already surpassed its COP21 commitment by achieving over 40% of its power capacity from non-fossil sources. It aims for 500 gigawatts of renewable energy capacity by 2030, supporting its goals to reduce emissions intensity by 45% and achieve net-zero emissions by 2070. This growth is driven by significant increases in solar and wind capacity, alongside ambitious plans for green hydrogen production.
Benefits of Investing in Renewable Energy Stocks
Investing in renewable energy stocks in India offers several compelling reasons:
- Booming sector: Government initiatives are propelling the renewable energy sector, leading to significant growth and investment opportunities.
- Government incentives: Incentives and subsidies from global governments make green energy stocks attractive investment avenues.
- Eco-friendly: Investments in renewable energy contribute to a sustainable and environmentally friendly future.
- Reducing carbon footprints: Aligns with India’s goal to reduce carbon emissions by one billion tonnes by 2030, supporting global climate change efforts.
- Portfolio diversification: Renewable energy stocks can diversify investment portfolios, potentially reducing risk.
- Rapid growth: India’s renewable energy sector is witnessing the highest Y-o-Y growth, with significant increases in solar and wind capacity.
- Increasing demand: With India’s power requirement projected to grow significantly, renewable energy is poised to meet a substantial portion of this demand.
- Rising investments: The sector has attracted significant foreign direct investment, indicating strong investor confidence and future growth potential.
These factors make renewable energy stocks in India an attractive option for investors looking to capitalise on the country’s shift towards sustainable energy solutions.
How to Invest in the Renewable Energy Sector?
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.
Once you get a list of clean energy stocks in India, make sure to evaluate them individually using Stock Pages. Look at their finances, compare with peers, evaluate their holding patterns and more. Doing this will give you a well-rounded understanding of the stock’s past performance and prospects, which will help you decide whether to invest in it or not.
If you want to invest in mutual funds and ETFs, find options that invest in the green energy sector and evaluate them thoroughly. Pick the best one based on your research and investment goal.
Challenges pertaining renewable energy sector in India
The challenges surrounding renewable energy in India include:
- Cost burden of legacy infrastructure: High transmission and distribution losses prevent decisive investments in renewables, keeping the energy sector reliant on coal.
- Financing the transition: The ambitious plan to add significant renewable capacity requires trillions of dollars, necessitating access to low-cost financing.
- Grid reliability: The massive increase in infirm power sources challenges grid stability, especially as India lacks a transition fuel like natural gas.
- Intermittency and variability: Renewable sources like solar and wind are not constant, leading to challenges in maintaining a stable energy supply.
- Location-specific potential: Optimal locations for renewable energy projects are often far from consumers or the grid, complicating transmission.
- Higher costs compared to fossil fuels: Despite falling prices, renewables can still be more expensive than traditional energy sources, impacting economic feasibility.
- Weak and unstable grid: India’s grid infrastructure struggles to handle the variability and intermittency of renewable energy, requiring significant upgrades.
- Lack of incentives for peaker plants: Without incentives for plants that can quickly ramp up or down, integrating a high percentage of renewables into the grid is challenging.
These challenges underscore the complexity of transitioning to renewable energy in India, necessitating innovative solutions and substantial investment.
Things to consider before investing in the best renewable energy stocks in India
- Due to recent hype in the renewable energy sector, some stocks may be overvalued. So ensure to do a valuation analysis before buying. You can use valuation ratios and other tools explained in What Is the Intrinsic Value of a Stock and How To Calculate It?
- Assess the debt position of these companies. Most of them, including Adani, SJVN, and NHPC, have considerable debt. Being funded by debt is not all that bad. However, a company should have ample cash flow to repay the debt and be on the greener side.
- Since the renewable energy sector is relatively new, many companies may not be profitable, while some may have just started reporting profits. So making sure that the company is profitable can give you some respite. If profit is nil or low, assess their future plans and prospects. Can they become profitable by improving their operations, introducing new technology, and offering a new product line? If yes, are they capable of doing it? What are the management views, and what is their attitude? Gauge other supporting metrics and only then make a decision.
When you dig deeper into these stocks using Tickertape’s Stock Pages, you will notice trends in financial performance over the years. Be sure to go by them, collate news about the company operations and only make an investment decision.
Frequently Asked Questions About Renewable Stocks
Can green energy be a good investment?
As per the International Energy Agency, global renewable energy is likely to increase to ~95% by 2026. Countries across the globe are slowly shifting towards green energy and are investing heavily to make the transformation quicker and smoother. These facts suggest that green energy is the future, which can make it a long-term investment option.
How to identify renewable energy penny stocks on Tickertape?
Penny stocks are stocks with the price of Rs. 10 or less. To identify renewable energy penny stocks,
– Launch Tickertape Stock Screener
– Select “Renewable Energy and Renewable Energy Equipment & Services” categories
– Set the close price to Rs. 10 being the highest
Which are some solar energy stocks in India?
Solar energy companies are either focused on or associated with generating energy using the sun. Tata Power, JSW Energy, Sterling and Wilson, INOX Wind, and Adani Green Energy Limited are a few solar energy companies.
Which are some wind energy stocks in India?
Wind energy companies are either focused on or associated with generating energy using the wind. Suzlon Energy Limited, Inox Wind Limited, Regen Powertech Private Limited, Orient Green Power Limited, Enercon India Pvt Limited, and Gamesa Wind Turbines Private Limited are some wind energy companies in India.
What are green energy stocks?
Green energy stocks in India are companies involved in developing alternative technologies to replace fossil fuels with renewable resources like wind, solar, and hydroelectric. Renewable energy also includes supplementary technologies that will be instrumental in green energy transformation.
Where can you track Orient green power news?
You can keep track of Orient Green Power news on Tickertape. You can also get Orient Green Power’s share price, financials, shareholding patterns, and other information on the Stock Page.
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As an investment fanatic, I’ve dabbled in early-stage startups, mutual funds, gold, stocks, smallcases, and real estate to identify which assets generate the highest ROI. At Tickertape, I’m dedicated to presenting my learning and providing insightful suggestions to help my readers make sound investment decision.
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