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.
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.
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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.
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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.
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