Renewable Energy Stocks in India Jump Up to 500% in 1 Year! What is fueling this rise?
Reading this headline, you must be thinking that renewable energy stocks are the new favorites of the market, with their impressive growth outpacing traditional energy stocks.
Welcome to another blog on our page. Today, let’s explore more about renewable energy stocks in India and what you should buy from this sector.
India stands 4th globally in renewable energy installed capacity. YES, that has been a remarkable achievement for the country, reflecting its commitment to clean energy.
Top Achievements of India in the Renewable Energy Sector
- Global Ranking – India ranks 4th globally for total renewable power capacity additions.
- Electric Capacity – India has already achieved its target of 40% installed electric capacity from non-fossil fuels in Nov 2021.
- Wind and Solar Power – India ranks 4th in Wind Power Capacity and 5th in Solar Power Capacity globally.
Top 10 renewable energy stocks in India:
The best renewable energy stocks in India in 2024, based on market capitalization:
| S.no | Stocks Name | Market Capitalization(in Cr) | P/E Ratio | 5 Years Returns (%) |
| 1. | Adani Green Energy Ltd | 2,86,076 | 196.21 | 4410.99 |
| 2. | NHPC Ltd | 91,429.9 | 27.63 | 296.36 |
| 3. | SJVN Ltd | 52,246.63 | 52.52 | 459.67 |
| 4. | Jaiprakash Power Ventures Ltd | 12,363.64 | 31.77 | 535.09 |
| 5. | KPI Green Energy Ltd | 12,715 | 84.55 | 4642.49 |
| 6. | BF Utilities Ltd | 3,051 | 22.1 | 332.67 |
| 7. | KP Energy Ltd | 2,975 | 51.01 | 1218.20 |
| 8. | Orient Green Power Company Ltd | 2,035 | 47.77 | 436.62 |
| 9. | Indowind Energy Ltd | 259.1 | NA | 341.62 |
| 10. | WAA Solar Ltd | 224.8 | 22.84 | 828.98 |
If you are looking for a renewable stock cheaper than this, we got you covered.
Government’s Commitment to Clean Energy
The renewable energy sector is expected to remain a focus of the government after the election. This sector is going to excel in the long run, and it’s good if you are considering it for investments in top renewable energy stocks in India.
The Indian government has shown a strong commitment to clean energy, with the Government’s commitments in the sector that promise to reduce the carbon intensity of the nation’s economy by less than 45% by the end of the decade and achieve net-zero carbon emissions by 2070.
Key drivers responsible for this growth are:
- Solar Parks: The government’s approval for the setting of 57 new solar parks of 39.28 GW across the nation, along with arrangements for floating projects.
- Renewable Energy Budget: The Union Cabinet approved a budget of INR 19,744 crores for the National Green Hydrogen Mission, INR 1466 crores for pilot projects, INR 400 crores for R&D, and INR 388 crores for other Mission components. That’s a huge amount the government is planning to spend in the renewable energy sector to expand its further growth prospects.
- PLI Scheme: India is on its journey to becoming an Atma Nirbhar Bharat, and in this, the PLI scheme in Solar PV manufacturing with financial outlays of INR 24,000 crores is playing a huge role.
Enough about the renewable sector in India. Now let us explore how this can benefit you if you are planning to invest. And who will not invest in such a sustainable investment option that is sure to go UP in the long term growth.
Read more: Green Hydrogen Stocks in India
Here is another list of Top 5 Renewable Energy Stocks in India under 10 rupees:
| S.no | Stocks Name | Market Capitalization(in Cr) | P/E Ratio | 5 Years Returns (%) |
| 1. | RattanIndia Power | 4,704.2 | NA | 232.08 |
| 2. | GVK Power & Infra | 1,718 | 20.1 | 91.23 |
| 3. | Vikas Lifecare | 947.19 | NA | 23.64 |
| 4. | Aakash Exploration | 112 | 29.8 | 671.43 |
| 5. | Hindustan Fluoro | 32 | NA | 24.64 |
Investing in Renewable Energy Stocks
Investing in Renewable Energy Stocks in India can offer you various benefits such as:
- Renewable Energy Stocks in India are a booming sector, with the country’s increasing focus on sustainable practices. Moreover, this sector is backed by the government, leading to its significant growth and investment opportunities.
- Investments in renewable energy will not only financially benefit your portfolio but also contribute to a sustainable and environmentally friendly future.
- Portfolio diversification: Best Renewable Energy Stocks in India can diversify investment portfolios, potentially reducing risk.
- Longer-term growth: If you are someone who would like to stay longer in the game, then these Renewable Energy Stocks in India are for you! With the global shift towards renewable energy sources, investing in Top renewable energy stocks in India can offer long-term potential benefits as these industries continue to expand.
- Top Renewable Energy Stocks in India can serve as a hedge against volatile oil and gas prices, as they are less dependent on these traditional energy sources.
- Investing in the best renewable energy stocks in India aligns with ethical and socially responsible investing principles, making it a choice that reflects your values.
These are just a few of the benefits this sector can provide as there is a lot of scope in this.
Read more: Oil and Gas Stocks in India
Things to Consider Before Investing in the Best Renewable Energy Stocks in India
- Since this sudden hype in the renewable sector, there might be some stocks that are overvalued. So make sure that you analyze the stocks before buying.
- The demand for energy in the country is increasing because of the increasing population in India and economy. There are some sectors like solar and wind that are catering to such demands as their sustainable solutions. Keep an eye on such industries.
- Before investing, it is important to evaluate the debt levels of companies. Debt is important for a company, but it is also necessary for the company to have sufficient cash flow in order to repay these debts and have a financially stable state.
- In the beginning stage of the renewable sector, there are many companies coming into the race, some are profitable and some might not be. To ensure that the company you have selected based on your evaluation and analysis has either started making profits or has a planned path towards profitability.
- Understanding the management’s vision and approach is key to making an informed decision.
Conclusion
Investing in Renewable energy stocks in India can offer a promising opportunity and benefit from the sector’s growth and government initiatives. With a diverse range of companies and projects in the energy sector, there are many options for investors to consider, from traditional powerhouses to renewable pioneers. By carefully selecting the right energy stocks, investors can not only achieve financial growth but also contribute to a sustainable future for India.
Investing in the energy stocks in India can be a smart move this year in your portfolio.
Investing in Renewable energy stocks in India is a smart play, with growth potential leading the way. Choose wisely, invest smartly, and be part of India’s green energy party.
Frequently Asked Questions (FAQs)
- Are renewable energy stocks a good investment for beginners?
Investing in stocks is suitable for all when you have the correct and complete information, while it is wise to say that these things can be learned from experience only. One can better understand the risks associated with investing in renewable energy stocks in India and consider diversifying their portfolio with a mix of investments to manage the risk. renewable energy stocks can offer attractive long-term growth potential.
- What are some tips for investing in renewable energy stocks?
Some tips for investing in renewable energy stocks in India include conducting thorough research, being updated and informed about the latest trends and government plans, and diversifying the portfolio. Moreover, you can consider investing in renewable energy mutual funds or exchange-traded funds (ETFs) to gain exposure to the sector while minimizing risk.
- Why should I invest in renewable energy stocks?
Investing in renewable energy stocks offers several advantages. Firstly, it aligns with sustainable investing principles, allowing you to support environmentally friendly practices. Secondly, the renewable energy sector is poised for significant growth due to increasing global focus on clean energy, which can potentially lead to higher returns for investors. Additionally, investing in renewable energy stocks can diversify your portfolio and provide a hedge against volatile oil and gas prices. To discover renewable energy stocks in India, you can use UNIVEST’s stock screener and select “ renewable energy “ and the sector and other preferences that matter to you like net income level, total debt, market cap, etc whichever suits your investment goals the best.
Once you get the stock of your best, look at their finances and compare it to other trending stocks. This can give you a more deeper understanding of the stock performance which can help you make informed decisions.
- What 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.
- What 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?
The Green Energy Stocks in India are driving the country’s economic growth. These are the companies that produce, distribute, and sell the energy needed to power our homes, businesses, and industries across the nation. Energy stocks in India serve as the backbone of the country as we strive for energy independence and sustainability. Moreover, Renewable Energy Stocks in India are the companies that deal with sustainable energy resources like solar, wind, and hydropower. Investing in energy stocks is a great opportunity as it allows you to tap into the worldwide need for energy, influenced by economic growth, world events, and technology.
Disclaimer: This is for general information and education purposes only. The Securities quoted (if any) are for illustration only and are not recommendatory. Past performance does not guarantee any future returns. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. For more details/disclosures, visit at univest and univest mobile application.
