Best Energy Stocks in India 2024

Best Energy Stocks in India

The investing world is full of opportunities, each unique and suited to individual preferences. If you are sitting in a room reading this blog, imagine that every switch of a power source not only provides energy to your life but also can generate income to fuel your investments.

Welcome to the world of energy stocks, where innovation meets opportunity,  and in India, this silent revolution is underway. Indian companies are not just providing power; they are empowering investors to be part of a sustainable future.

Join us as we explore the best energy stocks to buy in India and illuminate your path to financial growth. From traditional powerhouses to renewable pioneers, these stocks will light up your portfolio and spark a brighter tomorrow.

Top Energy Stocks in India:

Here is a curated list of the best energy stocks in India that showcase resilience, innovation, and potential for growth in the evolving landscape of renewable and traditional energy sources.

S.no	Stocks Name	Market Capitalization(in Cr)	P/E Ratio	5 Years Returns (%)
1.	Reliance Industries	20,03,174.2	28.63	112.04
2.	ONGC	3,48,536.6	8.31	64.13
3.	Adani Green	2,84,104.1	194.86	3963.53
4.	Oil India	64,722.7	10.9	228.83
5.	GAIL	1,30,713	16.21	15.39
6.	Indraprastha Gas	30,643	15.72	45.40
7.	Coal India	2,73,193.7	9.3	73.60
8.	IOCL	2,41,261.36	5.15	63.95
9.	NTPC	3,32,644.1	18.48	159.16
10	Power Grid	2,63,718.62	16.33	98.21

1. Reliance Industries

Reliance Industries is the best choice for energy stock investment. The company’s ongoing innovations and expansions, especially in renewable energy, make it a forward-thinking investment. Reliance is all set and committed to promoting sustainable development and combating the climate crisis to preserve the planet.

2. ONGC

ONGC is renowned for its expertise in oil and gas exploration and production, ONGC has a renewable portfolio of 176 MW, comprising 153 MW of wind power and 23 MW of solar. It is aiming to add 10 gigawatts of renewable power to its portfolio by 2040. Consider ONGC in your portfolio as one of the best energy stocks in India as an investment option.

3. Adani Green

Adani has promised to make India an energy-self-reliant nation. The Adani Group is on track to become the world’s largest producer of green hydrogen. Adani Green Energy Limited is on track to becoming the world’s largest renewable energy company by 2030. This makes “Green hydrogen stocks“ an appealing investment choice for Indian investors.

4. Oil India

Oil India is looking at ways to advance the net zero target to 2038. The company is all set to expand its renewable energy, for example, OIL plans to invest about Rs 9,000 crore in setting up 1,800 megawatts of solar and onshore wind energy projects and Rs 3,000 crore in a green hydrogen project. You can consider OIL India as the best energy stock trending in India right at the moment 

 5. GAIL

Keeping up with global energy trends and reducing its environmental effects, GAIL is extending its portfolio to include renewable energy, making it a leader in the natural gas industry. GAIL’s strategy for 2030 entails exploring various opportunities for increasing its renewable portfolio through organic as well as inorganic routes. 

6. Indraprastha Gas

Indraprastha Gas Ltd, the largest city gas network operator in  India is exploring potential acquisitions in the renewable energy sector, focusing on solar power. It is a promising investment for Indian investors. 

7. Coal India

Coal India, the world’s largest coal producer, holds a strong position in the energy sector. Coal India Limited (CIL) has announced plans to set up 3 gigawatts (GW) of solar power projects as part of its strategy to achieve a net-zero target by the fiscal year 2025-26. making it a significant investment choice.

8. IOCL

IOCL’s renewable energy projects offer a diversification opportunity, reducing risk by investing in a different sector than traditional oil and gas. IOCL’s renewable energy projects are supported by government initiatives promoting clean energy. This support can lead to stable growth and profitability.

9. NTPC

NTPC aims to lead the energy transition in India. NTPC has been actively expanding its renewable energy portfolio and can be considered the best energy stock to buy in India.

10. Power Grid

Power Grid Corporation of India is a leading player in the transmission of electricity and is currently involved in the development of renewable energy projects especially in the transmission of solar and wind energy. For example, the company has been involved in the transmission of power from the Bhadla Solar Park in Rajasthan, one of the largest solar parks in India. Such projects showcase the Power Grid’s capabilities and potential for future growth in renewable energy transmission. And will be a smart choice for investment 

Seize the Opportunity: Investing in Top Energy Stocks in India

• The demand for energy stocks in India is increasing because of a combination of economic, demographic, political or global factors. Seeing this increasing demand, investing in energy stocks can benefit you in the long run
• India is placing a greater emphasis on sustainable energy. The government’s backing of environmental programs is increasing, as seen in the interim budget of 2024, which provides a significant boost to this industry. Investing in such stocks aligns with the government’s initiatives and can lead to potential gains.
• Diversification: Including energy stocks in your portfolio can help diversify your investments, reducing risk by spreading it across different sectors.
• Energy stocks can act as a hedge against inflation since energy prices tend to rise with inflation, you can potentially preserve the value of your investment in the long run
• Global Trends: Energy stocks are influenced by global trends and events, providing opportunities to capitalize on international developments that affect energy markets.

Renewable Energy Stocks 

The Best 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 in India by economic growth, world events, and technology. However, these stocks come with risks. 

But let’s be clear that they can be affected by changes in commodity prices, government rules, and environmental laws, making them sensitive to market changes and energy trends, sometimes in unpredictable ways.

This is your chance to invest in energy stocks in India’s journey towards green energy transition. India is spearheading one of the world’s most ambitious clean energy transitions and remains steadfast in its commitment to combating climate change.  Despite the challenges faced in covid 19 on the economy,  India has made significant strides towards its climate ambitions. India has embarked on a long-term strategy towards a Low GHG Emission Development Strategy by adopting a multi-pronged approach. Considering all this, investing in energy stocks in India can be a smart move.

Conclusion

Investing in 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 Top energy stocks in India can be a smart move this year in your portfolio.

Investing in the best 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.

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 www.univest.in/univest mobile application.