5 Top Renewable Energy Stocks in India 2022 & Why Invest in Them?

5 Top Renewable Energy Stocks in India 2022 & Why Invest in Them?

List of top renewable energy stocks in India 2022: The world economy is increasingly shifting to alternative energy sources. Concerns about global warming are prompting a global shift away from carbon-based fossil fuels toward more environmentally friendly alternative energy sources.

It is anticipated that more than $100 trillion will be needed to decarbonize the world economy over the next 30 years.

Renewable energy will play a significant part in this energy transformation. This article will be looking at some of the top renewable energy stocks to invest in India. But before that, let’s look at some of the reasons you should invest in renewable energy stocks.

Why Invest in Renewable Energy Stocks?

A quarter of the world’s electricity is being produced using clean, renewable energy sources, including wind, solar, and hydropower. Over the last decade, the sector has seen rapid expansion, with yearly increases in energy generation capacity of over 8%.

This pace has picked up over the past few years due to growing worries about climate change. To aid the reduction in greenhouse gas emissions, it is necessary that this sector picks up speed.

Top Renewable Energy Stocks in India

Corporations and other organizations are being forced to consider how they might contribute to reducing greenhouse gas emissions resulting from climate change. PPAs with electric utilities and other energy producers let businesses buy electricity only from renewable sources.

Meanwhile, some are making investments directly in the development of alternative projects. Even though many people are switching to renewable energy sources to become more environmentally accountable global citizens, the cost of solar panels, wind turbines, and batteries used for energy storage continues to decline. Because of this, the industry now presents a more enticing possibility for financial investment.

Also Check Out: Stock Market Investing For Beginners

Top Renewable Energy Stocks in India

Here is a list of Top Renewable Energy Stocks in India, Keep Reading to find out more.

1. Tata Power

Tata Power is ranked top among the list of Top Renewable Energy Stocks in India. With a total capacity of 2.6 gigawatts, Tata Power is now the most significant operator in the renewable energy industry (GW).

Tata Power Solar Systems and Tata Power Renewable Energy together account for 32 percent of Tata Power’s overall portfolio. Tata Power has promised to generate 15 gigawatts of renewable energy by the year 2025.

In addition to renewable energy production, their primary emphasis is on addressing some of the most fundamental challenges confronting the sector. The installation of charging stations is by far the most significant step.

If we look at the company’s financials, we can see that its sales have grown from Rs. 27,127 cr in 2018 to Rs. 32,661 cr in 2021. Concerning, though, is the fact that the company’s net earnings have dropped from Rs. 2,408 cr to Rs. 1,127 cr during the same period.

A debt-equity ratio of 2.08 indicates that the firm has significant debt. To look on the positive side, the promoters now possess a share in the firm equal to 46.86 percent. The company now trades at a price-to-earnings ratio of 45.96, indicating that it has had one of its most successful years.

2. Sterling and Wilson

The services of solar engineering, procurement, and construction (EPC) are provided by Sterling and Wilson, which offers end-to-end solutions. It has 252 EPC projects in its portfolio, which have a production capacity of 10.6GW. Subsequently, the business made news after being acquired by Reliance Industries as a wholly-owned subsidiary known as Reliance New Energy Solar for Rs. 2,850 crores.

Its income has decreased significantly, going from Rs. 8240 cr in 2019 to Rs. 5080 cr in 2021. Nevertheless, this is because of the difficult climate in which the whole solar and wind energy value chains are now operating.

3. Inox Wind

Inox Wind is a leading Indian producer of wind turbine generators and is also one of the major manufacturers in the country. The corporation is selling individual components such as blades, tube towers, nacelles, and so on.

It does business via its three cutting-edge production facilities, located in the states of Gujarat, Himachal Pradesh, and Madhya Pradesh. Since 2017, Inox’s sales have declined, going from Rs. 3,415 in that year’s earnings to Rs. 710 cr in 2021. This is apparent in its profits, which have decreased from Rs. 303 cr in 2017 to generate a loss every year following that.

Quick Read: Top Solar Companies in India Listed in Stock Market!

4. Adani Green Energy Limited

The multi-billionaire founder of the Adani Group has made it quite apparent that the company has ambitious intentions in renewable energy. Adani Solar now has a manufacturing capability of 3.5GW, while it is anticipated that Adani Green Energy will have a throughput of 25GW.

In the past, the company had also completed the purchase of SB Energy, which gave them control of India’s most important renewable energy industry.

The price-to-earnings ratio of Adani Green stock, which now trades at 463.90, is significantly high compared to its competitors. The firm reported a profit of Rs. 176 crores for the previous fiscal year, despite its debt-equity ratio being rather high at 27.22 percent.

On the other hand, its profitability has been underwhelming, which may be attributed to the fact that the firm has been posting losses from 2017–to 2020. Nonetheless, the business posted a profit of 176 crore rupees in the previous fiscal year.

5. JSW Energy

Thermal, hydroelectric, and solar power contribute to JSW Energy’s total power-generating capacity of 4543 megawatts (MW). The firm is now working on constructing renewable energy projects with a total capacity of 2,458 megawatts (MW). As a result, the corporation’s renewable energy percentage will rise from 30% to 55%.

Although the company’s sales have shown some promising signs by growing from Rs. 629 crores in 2017 to Rs. 795 cr in 2021, the significant growth revenue trend has not been maintained. The firm, when compared to its rival, has a high PE ratio of 62.40, much like its competitor. As a result, JSW Energy is ranked last on our list of the Top Renewable Energy Stocks in India.

In Closing

So, there you have it! The above are some of the top renewable energy stocks in India. If you have no idea how to get into this stock business, you may need to take some lessons on FinGrad. It is an online stock market institute that provides courses and webinars to explain the stock market, and it is a suitable platform for beginners and experts.

Investing in this type of stock market comes with its own risk. However, proper education can make sure you maximize your profit and minimize your loss. We hope this article helps you make the best investment decision.

Tags: Best penny stocks in renewable Energy in India, Green energy penny stocks India below 1 rupee, Green energy Stocks India NSE, Is JSW Energy a good buy?, Is Sterling and Wilson solar a good investment?, Is Tata Power a good company?, List of green energy stocks in India, Renewable energy stocks India 2022, Renewable Energy stocks India under 10 Rs, Renewable energy stocks list, Top renewable energy companies in India, What are the top 5 renewable energy sources in India?, What is Inox Wind?, What is the best solar stocks to buy in India?, What is the future of Adani Green Energy?, Which is the best renewable energy stock?, Top Renewable Energy Stocks in India, green energy penny stocks nse, top renewable energy stocks in India, best green energy stocks in india

Top Solar Companies in India Listed in Stock Market!

Top Solar Companies in India Listed in Stock Market!

List of Top Solar Companies in India listed in stock market: Renewable energy is here to stay. Just take a look at how quickly automobile companies have sped up R&D and manufacturing of EV counterparts of their vehicles.

From almost no electric vehicle makers 10 years ago to EVs in two, three, and four-wheeler segments, it is not difficult to picture the future of transportation.

India has also committed itself to reducing its dependence on coal and bringing down its global carbon footprint. According to a study, India’s revenues from fossil fuels will drop by 65% of 2019 revenues by the year 2050. 

Why Switch To Solar Energy?

Fossil fuels are made from the carbon matter of plants and animals that existed millions of years ago. This applies to petroleum, coal, diesel, and every other carbon-based fuel we’re currently using.

There’s a limit as to how long we can depend on such conventional forms of energy before global warming reaches irreversible levels and overall power consumption outweighs overall power production.

Fossil fuels are also non-renewable – once it’s incinerated, there’s no second life as it gets converted into other forms of energy. Electricity, heat, and industry (73.2%)  have the highest carbon emissions currently. 

Solar energy is supposed to solve both these problems – Emissions and Quantity. 

When the need for alternative energy rises, so does the demand. Companies have set up subsidiaries specifically for the capitalization of alternative energy sources.

Solar energy is virtually unlimited as the Sun isn’t turning into a red giant in our lifetime and we have no limit on harnessing solar energy.

To support the new move of implementing solar energy, the Government has also provided attractive incentives and subsidies to companies and homeowners. You can check these schemes here on the official government website.

Which Is The No 1 Solar Company In India?

Adani Green is one of the largest solar companies in India. They built one of the largest solar power plants in India and the world at Kamuthi, Tamil Nadu. The company has built up renewable power plants across 200,000 acres with a capacity of up to 20 GWs of energy.

List of Top Solar Companies in India

Here is a list of top solar companies in India listed in stock market, Keep reading to find out more.

1. Adani Green Energy

Adani Green Energy

Adani Green Energy was incorporated in 2015, under the Adani Group. Besides being a subsidiary itself, the company holds several subsidiary companies in the renewable energy sector such as Adani Renewable Energy.

77% of the company’s revenue comes from the power supply, and as of March 2021, 3.0 Gigawatts of power is produced from solar energy, of the total 3.5 Gigawatts produced by the company. The remaining 0.5 Gigawatts come from wind energy.

The stock price has rallied 61% in 2022 alone with a CMP of ₹2169, and the company has a market capitalization of ₹3.43 lakh crores. 

2. Tata Power Company

Tata Power Company

Part of the Tata Group, Tata Power Company is an energy-based organization, with 69% of output coming from thermal power, 14% from solar, 7% from wind, and 3% from waste heat recovery.

While most of its revenues come from thermal and conventional power sources, Tata Power hopes to shift towards cleaner energy sources in the future. The company has a market capitalization of over 72,600 crores at a CMP of ₹228 per share. 

3. Borosil Renewables

Borosil Renewables

Borosil is a company well known for its laboratory glassware which we’ve all seen and used or even broken by mistake in high school and college. But besides lab tubes and beakers, Borosil is also the only manufacturer of solar glass panels in the country. Their factory in Gujarat contributes 40% of the country’s solar needs alone. 

While Borosil itself is known for making glassware products, the company has a strong foothold in India for making glassware for solar panels as well. They derive over 3/4th of their revenue from domestic operations, whereas the remaining 23 percent comes from exports to countries such as the United States and Turkey.

4. Websol Energy System

Websol Energy System | Top Solar Companies in India

Websol is a manufacturer of photovoltaic crystalline cells. The cells have both commercial and domestic applications, with a product range from 10 watts to 350 watts. The ISO 9001:2015 certified company is based in West Bengal and exports its products internationally and also sells them domestically. 

5. Sterling & Wilson Renewable Energy

Sterling & Wilson Renewable Energy | Top Solar Companies in India

Sterling & Wilson is an end-to-end solar engineering company that manufactures solar panels along with its operation and maintenance as well.

The company is part of the Shapoorji Pallonji Group. 95% of its revenue comes from EPC (engineering, procurement, and construction) of rooftop solar panels, floating solar and energy storage.

The company has both domestic as well international installation projects, with 54% of all projects completed in India and the remaining 46% completed abroad.

Also Read: Top Textile Stocks In India to Watch Out For!

In Closing

Worldwide, we’re witnessing a rapid shift from fossil fuels to renewable energy, petrol and diesel vehicles to EVs, and sustainability over cost-cutting. Even investors have their focus on the renewable energy sector, as the shift is evident and will soon take over as the new energy market. 

Foresight is one of the traits of a true value investor who observes shifting tides in the market before it becomes common knowledge. Which of the Solar energy stocks do you think will benefit the most in the future? Tell us in the comments below. Also, that’s all for the article on Top Solar Companies in India listed in stock market. Happy Investing!

Tags: What is the best solar stock to buy in India?, Which solar share is best?, What is the best green energy stock to buy India?, Top 10 Solar Companies in India Listed in Stock Market, Top Solar Companies in India listed in stock market, Top Solar Companies in India, Top 10 Solar Companies/Manufacturers in India, Solar company share price list in India, Green energy stocks India NSE, Solar energy stocks India 2022, Renewable energy Penny stocks India, Solar energy stocks NSE