Best Green Energy Stocks in India

In the fiscal year 2024, renewable energy played a major role in more than 70% of the new power generated in India. As a result, green energy stocks have shown remarkable strength, offering returns of up to 600% in the past year. This increase in renewable energy investments reflects the country's commitment to sustainable development and reducing its carbon footprint. Investors have quickly recognised the potential of the green energy sector, driving up stock prices and highlighting the growing importance of environmentally-friendly initiatives in the financial markets. In this blog, we will discuss everything related to green energy stocks in India. 

What are Green Energy Stocks?

Green energy stocks are businesses that create low- to no-pollution alternative technologies using renewable resources. The most common sources of green energy are heat, wind, and sunshine. Low-impact hydropower sources and some types of biomass can also be included. Green energy firms strive to employ these resources to produce zero carbon emissions while using less fossil fuels.

Best Green Energy Stocks in India (2024)

Here is the green energy penny stocks list for your consideration: 

Note: As of 9th July 2024, the market capitalisation, one-year return, and five-year average return on investment shown above are correct. However, you should do extensive research before making any selections about these stocks.

Summary of the Leading Green Energy Stocks

A summary of the leading green energy stocks is provided below:

KP Energy Ltd

K.P. Energy(KPEL) is a part of the KP Group of Surat and it was formed in the year 2010. KP Energy Ltd. is an Indian small-cap green energy company that builds windmill infrastructure to generate geothermal energy. With a growth rate of 459% over the past year, this green energy company has performed the best out of all the Indian green energy stocks. 

• The company's market share increased from 0.3% to 1.31% in the preceding five years.
• The company has delivered good profit growth of 24.6% CAGR over last 5 years
• The company has a good return on equity (ROE) track record: 3 Years ROE 34.7%

NTPC Ltd

Established in 1975 to expedite the growth of power in India, this large-cap green energy firm produces electricity and sells vast amounts of it to state power companies. Other business of the group includes providing consultancy, project management & supervision, energy trading, oil & gas exploration and coal mining.

• This green energy company's market share has grown from 63.03% to 65.96% in the previous five years.
• The company has been maintaining a healthy dividend payout of 39.5%
• The company has a return on equity of 12.8% over the last 3 years.

Adani Green Energy Ltd

Adani Green Energy Ltd., one of India's biggest renewable energy firms, was founded in 2015. In India, this renewable energy firm constructs and manages wind and solar power projects. The company operates Kamuthi Solar Power Project, one of the largest solar photovoltaic plants in the world.

• This renewable energy company's market share has increased from 7.69% to 25.7% over the past five years.
• The company has reported net profit after tax of Rs 265.00 Crore in the latest quarter.
• The company has delivered good profit growth of 36.1% CAGR over the last 5 years
• Debtor days have improved from 95.1 to 53.1 days.

Websol Energy System Ltd

Websol Energy System Limited (formerly Websol SI Energy Systems Limited) was incorporated in February 1990. The company is engaged in the business of manufacturing photovoltaic crystalline solar cells and related modules in India. 

• Total Revenue and Earning for Websol Energy for the year ending 2024-03-31 was Rs 26.81 Cr and Rs -120.96 Cr on Standalone basis. 
• Last Quarter 2024-03-31, Websol Energy reported an income of Rs 25.69 Cr.

Zodiac Energy Ltd

Zodiac Energy was established in 1992 and has a wealth of knowledge in the renewable energy industry. It offers EPC services, wind power project development, and solar power system design. The firm has demonstrated good revenue growth of 26.39% and a strong promoter holding of 72.86%.

• Company is expected to give good quarter
• The company has delivered good profit growth of 28.6% CAGR over the last 5 years
• The company's median sales growth has been 42.4% of the last 10 years

Green Energy vs Renewable Energy

Here is a table showing the difference between Green Energy vs Renewable Energy : 

Features of Green Energy Stocks in India

Here are the features of Green Energy Stocks in India:

Strong Growth Prospects:

Green energy stocks offer great growth opportunities because of the increasing demand for clean energy solutions. As governments and industries worldwide shift towards sustainable practices, green energy companies should be ready for expansion and profitability. 

Positive Environmental Impact:

Green energy stocks contribute to a positive environmental impact by decreasing carbon emissions and being dependent on fossil fuels. 
Investors may contribute to preserving climate change and natural resources for future generations by purchasing these stocks.

Technological Innovation:

These businesses are at the forefront of technical innovation in the energy sector. Sustainable energy enterprises are consistently innovating and implementing state-of-the-art technology to enhance the efficacy and efficiency of renewable energy production, distribution, and storage.

Adaptability to Economic Volatility:

Even when the economy is unstable, green energy companies can stay strong. This happens because most of the people these days are choosing cleaner energy options. As a result, companies that make green energy in India can see consistent demand for their products and services.

How to Invest in the Top Green Energy Stocks in India?

Before investing in the top green energy stocks in India follow these steps:

1. It is important to research the sector to understand green energy penny stocks and know the market trends, key players, and regulatory updates. 
2. Diversify your investment across various green energy sources like wind, solar, hydro, and geo. 
3. Look into a company’s dedication to sustainability and check its carbon footprint, renewable energy investments, and environmental impact.
4. Check the financial condition of the company, and review its balance sheet, revenue growth, and profitability.
5. Stay updated by checking the market trends on the internet. 
6. For investment purposes, use a trusted brokerage firm and regularly review your portfolio. 

Types of Green Energy Stocks

There are many different types of green energy stocks in India, here is a small list of these stocks: 

Solar Energy Stocks India:

They are solar energy stocks, which include renewable energy companies in India. They majorly deal in manufacturing solar panels and provide installation services for residential, commercial, and utility-scale solar power projects.

Clean Energy Stocks:

Clean energy stocks are companies that generate and distribute renewable energy from sources such as solar, wind, hydropower, geothermal energy, and bioenergy.

Hydroelectric Power Stocks:

These companies generate electricity by using the force of flowing water, typically from rivers or dams. They benefit from the renewable nature of water as an energy source.

Biomass Energy Stocks:

Biomass Energy Stocks convert organic materials like wood, agricultural residues, or municipal solid waste into energy.

Stocks of Geothermal Energy:

These companies use the heat produced beneath the surface of the Earth to create power or heat buildings.

Factors to Consider Before Investing in Green Energy Stocks

There are the factors to consider before investing in green energy stocks:

Government Policies and Regulations:

 For green energy stocks one needs to evaluate the current and future regulatory landscape as government incentives, subsidies, and regulations can significantly impact the profitability and growth potential of green energy companies.

Market Demand and Growth Potential:

Evaluate the demand for green energy solutions both domestically and globally, and look for trends indicating increasing adoption of renewable energy sources and technologies. Consider the growth prospects for specific segments within the green energy sector, such as solar, wind, or electric vehicles.

Financial Health of Companies:

Analyse the financial performance and stability of green energy companies and look for companies with strong balance sheets, positive cash flows, and manageable debt levels.

Technological Innovation and Competitive Advantage:

Consider the technological innovation and competitive positioning of green energy companies and look for companies with proprietary technology, patents, or a competitive edge in their respective markets. 

Conclusion
In the Indian market, the demand for green energy stocks is continuously growing, providing profitable investment opportunities. By investing in the best green energy stocks in India, investors not only potentially earn attractive returns but also contribute to a cleaner and greener future. You can embrace the power of green energy stocks today for a brighter tomorrow by investing in a Stock Market App. 

Disclaimer: The stocks mentioned above are based on current market trends and can fluctuate in value. Before investing in any of these stocks, it is important to conduct thorough research or consult with a financial analyst. Investors are advised to exercise caution and diligence when making investment choices.