The solar energy sector is rapidly reshaping the global energy landscape, with India playing a pivotal role in this transition towards clean and sustainable power. As the world embraces renewable energy, India’s solar market is set for tremendous growth, driven by its ambitious target of installing 500 gigawatts (GW) of renewable energy capacity by 2030.
This expansion is propelled by continuous innovation in solar technology, significant investments in infrastructure, and a proactive policy framework aimed at decarbonizing the energy sector. With solar energy emerging as a cornerstone of India’s renewable energy strategy, the country is well-positioned to lead global efforts toward a sustainable and low-carbon future
Let’s explore the best solar energy stocks in India for December 2024, focusing on companies that have shown the best 5-year CAGR performance.
Name | Sub-Sector | Market Cap (₹ Cr) | 5Y CAGR (%) | 1Y Return (%) | PE Ratio |
Gensol Engineering Ltd | Construction & Engineering | 3,036.77 | 107.69 | 4.44 | 51 |
K.P. Energy Ltd | Renewable Energy | 3,943.71 | 96.15 | 233.36 | 67.24 |
Adani Green Energy Ltd | Renewable Energy | 2,09,710.06 | 58.85 | 17.81 | 190.65 |
Solar Industries India Ltd | Commodity Chemicals | 96,654.24 | 58.3 | 77.04 | 115.62 |
JSW Energy Ltd | Power Generation | 1,14,241.44 | 53.3 | 54.22 | 66.31 |
Orient Green Power Company Ltd | Renewable Energy | 2,057.50 | 51.27 | -18.49 | 53.58 |
NHPC Ltd | Renewable Energy | 81,806.76 | 27.75 | 41.76 | 22.57 |
CESC Ltd | Power Generation | 23,062.27 | 18.94 | 59.76 | 16.76 |
KPI Green Energy Ltd | Renewable Energy | 10,336.76 | – | 99.08 | 63.94 |
Zodiac Energy Ltd | Renewable Energy Equipment & Services | 752.69 | – | 249.25 | 68.55 |
Note: The best solar energy stocks list here is as of December 03, 2024. The stocks are sorted based on the 5Y CAGR.
Gensol Engineering Ltd is a leading engineering and renewable energy solutions provider in India, specialising in solar energy projects.
As of September 2024, Gensol Engineering Ltd reported a revenue of ₹346.82 crore, reflecting a 14% on-year increase. The company posted a net profit of ₹29.38 crore, with a net profit margin of 8.47%.
Key metrics:
K.P. Energy Ltd is a prominent renewable energy company in India, focusing on the development, operation and maintenance of wind and solar energy projects.
As of September 2024, K.P. Energy Ltd reported a revenue of ₹201.99 crore, reflecting a significant increase from ₹71.48 crore in the same period of the previous fiscal year. The company posted a net profit of ₹24.93 crore, marking a three-fold rise from ₹8.18 crore in September 2023
Key metrics:
Adani Green Energy Ltd is a leading renewable energy company in India, primarily focused on the development, construction, and operation of solar and wind power projects.
As of September 2024, Adani Green Energy Ltd reported a revenue of ₹3,376 crore, reflecting a 30.4% on-year increase. The company posted a net profit of ₹515 crore, marking a 39% growth, with an EBITDA of ₹4,518 crore, showing a 20% on-year rise.
Key metrics:
Solar Industries India Ltd is a leading manufacturer of industrial explosives and a prominent player in the renewable energy sector, focusing on solar power solutions.
As of September 2024, the company reported a revenue of ₹1,715.83 crore, reflecting a 27.3% on-year increase. The company posted a net profit of ₹285.88 crore, marking a 42.8% on-year growth.
Key metrics:
JSW Energy Ltd is a leading power generation company in India, focused on producing electricity through thermal, hydro, and renewable energy sources.
As of September 2024, the company reported a revenue of ₹3,459 crore, reflecting a 2% on-year increase. The company posted a net profit of ₹853.25 crore, compared to ₹850 crore in the same period last year..
Key metrics:
Solar companies listed on the NSE manage a diverse range of projects, including large-scale solar power plants, designed to meet the increasing energy demands of both industrial and residential sectors.
Indian solar energy companies listed on the stock market are deeply committed to sustainability, contributing to India’s goal of achieving 500 GW of non-fossil fuel energy by 2030.
Solar companies continually invest in advanced technologies to improve the efficiency and affordability of solar energy solutions. This includes research into better photovoltaic (PV) cells, energy storage systems, and smart grid technologies, helping to drive innovation in solar energy projects and making them more cost-competitive.
The Indian government offers a range of incentives such as subsidies, tax benefits, and favourable regulations to encourage the growth of the solar sector. These policies provide a strong foundation for the success of solar companies, bolstering investor confidence and promoting further growth in the industry.
The growth and profitability of solar companies are heavily influenced by government policies and incentives. These initiatives create a favourable market environment, which can directly impact the performance and value of solar stocks.
Investing in solar stocks can be an effective way to diversify the investment portfolio. With solar energy playing an increasingly important role in India’s energy landscape, including these stocks could help balance and strengthen the overall portfolio.
Solar energy companies face competition from traditional energy sources such as coal, oil, and gas. Price fluctuations and market changes in these sectors can have a significant effect on solar stocks and their overall performance.
Broader global economic conditions can influence the solar industry. Disruptions like the COVID-19 pandemic, which affected global supply chains, have temporarily impacted solar companies, including their stock prices, by disrupting the availability of key materials and manufacturing processes.
Before investing in solar energy stocks, it’s essential to carefully evaluate each company’s financial health, market position, growth potential, and the risks involved. By aligning these factors with your investment objectives, you can make informed decisions in the rapidly expanding solar energy sector.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
Published on: Dec 4, 2024, 4:45 PM IST
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