Best Green Energy Stocks in India

In the fiscal year 2024, renewable energy accounted for more than 70% of new power generation in India. As a result, green energy companies have shown remarkable growth, with gains of up to 600% over the last year. This surge in renewable energy investments demonstrates the country's commitment to sustainable development and reducing its carbon footprint. Investors have swiftly noticed the green energy sector's potential, moving stock prices upward and emphasizing the rising relevance of environmentally friendly efforts in financial markets. This article will discuss green stocks in India based on their PE ratio, explain why investing in them can be advantageous, provide future projections for the sector, and explore the benefits and risks associated with green energy stocks.

What are Green Energy Stocks?

Green energy stocks refer to companies 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.

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Green Energy Stocks in India (2024)

Here are notable green energy penny stocks listed in India. 

Disclaimer: The information provided on the above stocks is for informational purposes only. It is crucial to conduct thorough research before making any investment decisions regarding these stocks. We do not recommend trading any stocks without comprehensive research and professional financial advice. Always consult with a certified financial advisor to ensure informed and appropriate investment choices.
 

Summary of the Green Energy Stocks based on their P/E Ratio

Here is a summary of the green energy stocks: 

Oil and Natural Gas Corporation (ONGC) Limited

• Oil and Natural Gas Corporation (ONGC) Limited, established in 1956, is India's largest government-owned oil and gas exploration and production company. 
• ONGC contributes about 70% of India's domestic oil and gas production.
• The company operates both onshore and offshore oil and gas fields across India. ONGC is involved in the entire hydrocarbon value chain, including exploration, production, refining, and marketing of petroleum products.
• ONGC has an international presence through its subsidiary ONGC Videsh Limited, with investments in oil and gas projects across several countries. 
• While its core business remains in fossil fuels, ONGC has been making strides in renewable energy, investing in offshore wind power projects, and exploring opportunities in other clean technologies.

Get more details about Oil and Natural Gas Corporation share price here.

Know the Oil and Natural Gas Corporation Share Price History here.

GAIL (India) Limited

• GAIL (India) Limited, established in 1984, was formerly known as Gas Authority of India Limited. It is India's largest state-owned natural gas processing and distribution company.
• GAIL operates the country's largest natural gas pipeline network, spanning over 13,000 km. 
• The company is involved in gas transmission, distribution, and marketing. It also engages in petrochemical production and has ventured into renewable energy projects.
• As a public sector undertaking, GAIL plays a strategic role in India's energy security. 
• The company is involved in importing liquefied natural gas (LNG) and has equity stakes in LNG terminals, ensuring a stable supply of natural gas for the country.

Get more details about GAIL (India) Limited share price here.

Know the GAIL (India) Limited Share Price History here.

Adani Power Limited

• Adani Power Limited, established in 1996, is India's largest private thermal power producer. Part of the Adani Group conglomerate, the company operates multiple power plants across India with a total capacity exceeding 12,000 MW.
• The company utilizes a mix of coal and solar power generation technologies. It's known for its ultra-mega power projects and efficient operations.
• Adani Power's flagship project is the Mundra Thermal Power Plant in Gujarat, one of the world's largest single-location coal-based thermal power plants.
• In recent years, Adani Power has been diversifying its energy mix by venturing into renewable energy, particularly solar power. 

Get more details about Adani Power Limited share price here.

Know the Adani Power Limited Share Price History here.

NTPC Limited

• NTPC Limited, established in 1975, is India's largest power generation company. Formerly known as National Thermal Power Corporation, NTPC is a government-owned corporation under the Ministry of Power.
• The company operates thermal, hydro, and renewable energy power plants across India. 
• NTPC accounts for about 17% of India's total installed power generation capacity. In recent years, the company has been actively transitioning towards cleaner energy sources, setting ambitious targets for renewable energy capacity addition.
• NTPC is known for its operational efficiency and adoption of advanced technologies. Beyond power generation, the company has diversified into allied sectors such as coal mining, power trading, and consultancy services.

Get more details about NTPC Limited share price here.

Know the NTPC Limited Share Price History here.

NHPC Limited

• NHPC Limited, established in 1975, was formerly known as the National Hydroelectric Power Corporation. 
• It is India's largest hydropower generation company and a government-owned corporation under the Ministry of Power.
• NHPC develops and operates hydroelectric power stations across India, with a significant presence in the Himalayan region. 
• In recent years, the company has also ventured into other renewable energy projects like solar and wind power.
• Beyond power generation, NHPC provides consultancy services for hydropower and other infrastructure projects, both within India and internationally. 

Get more details about NHPC Limited share price here.

Know the NHPC Limited Share Price History here.

Reliance Industries Limited

• Reliance Industries Limited (RIL), established in 1966, is India's largest private sector company by market capitalization. 
• It's a conglomerate with interests in petrochemicals, oil and gas, retail, and telecommunications.
• RIL operates the world's largest oil refining complex at Jamnagar, Gujarat. In recent years, the company has expanded into renewable energy and green hydrogen production. 
• The company is known for its rapid growth and market-disrupting strategies, particularly in the telecommunications sector through its subsidiary Jio Platforms. 

Get more details about Reliance Industries Limited share price here.

Know the Reliance Industries Limited Share Price History here.

Tata Power Limited

• Tata Power Limited, established in 1915, is India's largest integrated power company and part of the Tata Group. 
• With over a century of experience, Tata Power operates across the entire power value chain: generation, transmission, and distribution.
• The company has been a leader in introducing clean and green technologies in India. Its generation portfolio includes thermal, hydro, solar, and wind power projects, with a growing emphasis on renewable energy sources.
• Tata Power has a significant presence in renewable energy and has been actively involved in developing smart grid technologies, microgrids for rural electrification, and electric vehicle charging infrastructure. 
• The company also has an international presence, with projects and investments in several countries.

Get more details about Tata Power Limited share price here.

Know the Tata Power Limited Share Price History here.

KP Energy Limited

• KP Energy Limited, established in 2010, is an Indian wind energy infrastructure services provider. 
• The company offers end-to-end solutions for wind farm development, including site identification, land acquisition, and project execution.
• Operating primarily in Gujarat, a state known for its high wind potential, KP Energy has been instrumental in developing several wind farms in the region. 
• The company focuses on both turnkey projects and independent power production.
• In recent years, KP Energy has been expanding its portfolio to include solar and hybrid projects, adapting to the evolving landscape of renewable energy in India. 

Get more details about KP Energy Limited share price here.

Know the KP Energy Limited Share Price History here.

JSW Energy Limited

• JSW Energy Limited, established in 1994, is part of the JSW Group, a leading Indian conglomerate. 
• The company is engaged in power generation, transmission, and trading, operating thermal, hydro, and renewable energy projects.
• As of 2021, JSW Energy had a total power generation capacity of around 4,559 MW. The company focuses on sustainability and reducing its carbon footprint in operations. 
• JSW Energy's integrated approach to power generation, including ownership of coal mines, has contributed to its operational efficiency and competitiveness. 
• The company has also been at the forefront of adopting new technologies to improve efficiency and reduce environmental impact.

Get more details about JSW Energy Limited share price here.

Know the JSW Energy Limited Share Price History here.

Adani Green Energy Limited

• Adani Green Energy Limited (AGEL) is a subsidiary of the Adani Group, focused on renewable energy. Established in 2015, AGEL has rapidly become one of India's largest renewable energy companies. 
• The company develops, builds, owns, and operates utility-scale grid-connected solar and wind farm projects.
• AGEL aims to achieve 25 GW of renewable energy capacity by 2025. It operates numerous solar and wind power projects across multiple Indian states.
•  One of its most notable achievements is the development of the world's largest solar power plant in Kamuthi, Tamil Nadu.
• The company has attracted significant international investment and is known for adopting innovative technologies such as bifacial solar modules and wind-solar hybrid projects. 

Get more details about Adani Green Energy Limited share price here.

Know the Adani Green Energy Limited Share Price History here.

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:

Analyze 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.