In the last one year, the prices of crude oil have risen by 61.13% as of 31st December 2021. Since then companies have shifted their gaze towards green energy. Many companies have made a smart move by generating energy from natural resources such as sunlight, water and air. As these companies are saving the environment in one way or the other, the stocks of these companies are called green energy stocks.
In this article, we have brought to you a list of the top ten green energy stocks listed on the Indian stock exchanges.
In this article:
- What are green energy stocks?
- Top ten green energy stocks listed on the Indian stock exchanges.
- Are green energy stocks worth investing?
- How to invest in the best green energy stocks?
What Are Green Energy Stocks?
Green energy stocks belong to the companies which produce energy from natural resources, such as sunlight, wind or water. The focus of such companies is to save the environment from pollution and other destructions such as drilling or mining which might destroy the ecosystem.
Recently, green energy stocks have given exponential returns to their investors in the form of capital appreciation. We also have an index that tracks the performance of green energy stocks. This index is called the S&P BSE Greenx index. It tracks the performance of the top 25 green companies in terms of market capitalisation and liquidity.
Top Ten Green Energy Stocks Listed on the Indian Stock Exchanges
The business focus of the company is on the distribution of electricity. It is one of India’s largest renewable energy players. The company has a motive of generating energy entirely through renewable sources. Presently, the company has a total capacity of generating 12,800 MegaWatt (MW) from its various thermal, hydro and other projects across India.
If we look at the revenue segment of the company, it generates 37% of revenues from the power generation segment. This involves revenues from hydroelectric and thermal sources. 16% revenue is generated from renewable energy sources i.e. wind and solar. 46% of revenues comes from the transmission & distribution segment.
Over the last year, the share price has rallied from Rs. 74.15 to Rs. 218.60 which has offered a return of whopping 194.81% as of 29th December 2021.
Quick Overview of Tata Power Company Ltd
|Market Cap (Cr): Rs. 67709||Face Value: Rs. 1||EPS: Rs. 4.55|
|Book Value: Rs. 66.6||Roce (%): 7.36||Debt to Equity: 2.34|
|Stock P/E: 43.4||ROE (%): 3.41||Dividend Yield (%): 0.73|
|Revenue (Cr): Rs. 28,435||Earnings (Cr): Rs. 6,425||Cash (Cr): Rs. 4,608|
|Total Debt (Cr): Rs. 49,060||Promoter’s Holdings (%): 46.86|
Websol Energy System Ltd. was established in 1994. It is India’s leading manufacturer of photovoltaic monocrystalline solar cells and modules. It is one of the fastest-growing companies in the solar photovoltaic industry. Over the last 10 years, the company has provided a compounded annual growth rate of 18%.
Just like Tata power, the shares of websol energy have also offered exponential returns to its investors. In the last year, the share price has rallied from Rs. 37.90 to Rs. 100.75 which has offered a return of a whopping 165.83% as on 29th December 2021.
Quick Overview of Websol Energy System Ltd.
|Market Cap (Cr): Rs. 377||Face Value: Rs. 10||EPS: Rs. 20.76|
|Book Value: Rs. 56.5||Roce (%): 12.1||Debt to Equity: 0.16|
|Stock P/E: 47||ROE (%): 10.1||Dividend Yield (%): 0|
|Revenue (Cr): –||Earnings (Cr): Rs. 13||Cash (Cr): Rs. 0.78|
|Total Debt (Cr): Rs. 28||Promoter’s Holdings (%): 25.39|
Borosil Renewables manufactures a range of products such as labware, scientific ware, and consumer ware products. But apart from all of this, it is the first and only solar glass manufacturer in India.
The company has won a national award for manufacturing the world’s first fully tempered 2mm thick solar glass.
If we look at the revenue structure of the company, it generates 77% of its revenue from India and the remaining 23% by catering exports to the USA, Turkey and Europe.
Quick Overview of Borosil Renewables Ltd
|Market Cap (Cr): Rs. 8387||Face Value: Rs. 1||EPS: Rs. 5.8|
|Book Value: Rs. 66.7||Roce (%): 10.6||Debt to Equity: 0.21|
|Stock P/E: 57.1||ROE (%): 6.44||Dividend Yield (%): 0|
|Revenue (Cr): Rs. 854||Earnings (Cr): Rs. 105||Cash (Cr): Rs. 13|
|Total Debt (Cr): Rs. 179||Promoter’s Holdings (%): 61.89|
Gas Authority of India Ltd. (GAIL) is India’s largest natural gas processing and distribution company. It was incorporated in 1984. As of date, it owns over 11,500 km of natural gas pipelines across India and over 23,00 km of liquefied petroleum gas pipelines.
The company generates a majority of its revenue from the distribution of natural gas.
Here is a revenue breakup of GAIL.
- Natural gas trading and marketing – 76.5%
- Petrochemicals – 7.5%
- Natural gas transmission – 7.5%
- LPG and other liquid hydrocarbon – 5%
- LPG transmission – 1%
- City gas – 0.83%
- Other sources – 1.4%
Quick Overview of GAIL (India) Ltd
|Market Cap (Cr): Rs. 57,281||Face Value (₹): 10||EPS (₹): 21.08|
|Book Value: Rs. 135||Roce (%): 13.5||Debt to Equity: 0.14|
|Stock P/E: 6.1||ROE (%): 12||Dividend Yield (%): 3.88|
|Revenue (Cr): Rs. 61,776||Earnings (Cr): 7,130||Cash (Cr): 2,039|
|Total Debt (Cr): Rs.7,608||Promoter’s Holdings (%): 52.12|
Indian Oil Corporation Ltd. (IOC) is a Maharatna Company controlled by the Government of India. The company is a leader in the oil refining and petroleum industry. It has various business chains such as refining, pipeline transportation and marketing of petrochemicals and natural gas.
The company owns 11 refineries across India. It has a total capacity of 81.2 million metric tons per annum (MMTPA). It contributes towards 32% of the total refining capacity of India.
The company has also announced its plan to build the country’s first green hydrogen plant at its Mathura refinery.
Quick Overview of Indian Oil Corporation Ltd
|Market Cap (Cr): 1,03,085||Face Value (₹): 10||EPS (₹): 27.3|
|Book Value: Rs. 136||Roce (%): 14.8||Debt to Equity: 0.91|
|Stock P/E: 3.99||ROE (%): 20.9||Dividend Yield (%): 11|
|Revenue (Cr): Rs. 3,84,170||Earnings (Cr): Rs. 20,523||Cash (Cr): Rs. 1,048|
|Total Debt (Cr): Rs. 1,08,634||Promoter’s Holdings (%): 51.5|
JSW Energy Ltd. is a part of the JSW group. It is a subsidy company which is primarily involved in the generation of power. As of date the company has six electricity projects across India with a total capacity of 4,559 MW. Moreover, the company is planning to set up three more power projects in the near future.
The company has an aim to double the power generation portfolio to 10 Giga Watts (GW) by focusing on green energy sources. It aims to generate 70% of power from renewable and hydro sources in the near future. As of now the company generates 79% revenue from its Indian businesses and 21% revenue from exports and international businesses.
Quick Overview of JSW Energy Ltd
|Market Cap (Cr): 48,113||Face Value: Rs. 10||EPS: Rs. 4.68|
|Book Value: Rs. 96||Roce (%): 8.87||Debt to Equity: 0.59|
|Stock P/E: 63.3||ROE (%): 5.94||Dividend Yield (%): 0.67|
|Revenue (Cr): Rs. 7,486||Earnings (Cr): Rs. 2,882||Cash (Cr): Rs. 755|
|Total Debt (Cr): Rs. 8,287||Promoter’s Holdings (%): 74.87|
Adani Green Energy is a part of the Adani group and is one of the largest renewable companies in India. It has a capacity to generate power of 13,990 MW.
The company has power projects in 11 states across India. It focuses on generating power from solar, wind and hybrid sources.
The stock has been on a bull run from 30th July 2021 to 29th December 2021, offering a return of 57.77% in such a short term.
Quick Overview of Adani Green Energy Ltd
|Market Cap (Cr): Rs. 2,19,447||Face Value: Rs. 10||EPS: Rs. 2.99|
|Book Value: Rs. 15.8||Roce (%): 11||Debt to Equity: -101.03|
|Stock P/E: 546||ROE (%): 25.9||Dividend Yield (%): 0|
|Revenue (Cr): Rs. 2,590||Earnings (Cr): Rs. 1,659||Cash (Cr): Rs. 3,133|
|Total Debt (Cr): Rs. 43,545||Promoter’s Holdings (%): 74.92|
Sterling and Wilson Solar Ltd is a leading end-to-end solar engineering, procurement and construction (EPC) solutions provider not only in India but globally. It is also engaged in the operation and maintenance of solar power projects.
Moreover, the company has a leading market position in the solar engineering, procurement and construction (EPC) segment. It has commissioned over 250 EPC projects to date with a capacity of 10,100 MW. As of date the company generates 95% revenue from EPC business and 5% from its operation and maintenance business.
Quick Overview of Sterling Wilson Renewable Energy Ltd
|Market Cap (Cr): Rs. 6,093||Face Value: Rs. 1||EPS: Rs. -42.78|
|Book Value: Rs. 27.6||Roce (%): -13.6||Debt to Equity: 1.61|
|Stock P/E: 0||ROE (%): -32.7||Dividend Yield (%): 0|
|Revenue (Cr): Rs. 5,542||Earnings (Cr): Rs. 164||Cash (Cr): Rs. 428|
|Total Debt (Cr): Rs. 684||Promoter’s Holdings (%): 75.35|
Inox Wind is a part of the Inox group. It is one of the largest manufacturers of Wind Turbine Generators (WTGs) in India. It is well known for manufacturing high quality and advanced technology.
Over the last year, the stock of Inox wind has rallied from Rs 58.55 to 122.30 which has offered a return of a whopping 120.16% as of 29th December 2021
Quick Overview of Inox Wind Ltd
|Market Cap (Cr): Rs. 2,573||Face Value: Rs. 10||EPS: Rs. -11.98|
|Book Value: Rs. 54.1||Roce (%): -7.6||Debt to Equity: 1.74|
|Stock P/E: 0||ROE (%): -21.2||Dividend Yield (%): 0|
|Revenue (Cr): Rs. 630||Earnings (Cr): Rs. -238||Cash (Cr): Rs. 136|
|Total Debt (Cr): Rs. 1,701||Promoter’s Holdings (%): 75|
These were the ten green energy stocks listed on the Indian stock exchanges. Now the question is…should you invest in green energy stocks? Let’s explore.
Suzlon Energy is primarily engaged in the business of manufacturing of wind turbine generators (WTGs). It also manufactures WTG related components of various capacities. The company is present in 18 countries across Asia, Australia, Europe, Africa and the U.S.
The company was once the fifth largest wind energy companies in Asia and in the world. But, taking too much debt on the balance sheet hampered the growth of the company to a great extent.
Explore more about suzlon energy from the video.
Quick Overview of Suzlon Energy Ltd
|Market Cap (Cr): Rs. 8,679||Face Value: Rs. 2||EPS: Rs. -0.25|
|Book Value: Rs. -3.72||Roce (%):11||Debt to Equity: -1.30|
|Stock P/E: 0||ROE (%): 0||Dividend Yield (%): 0|
|Revenue (Cr): Rs. 2,575||Earnings (Cr): Rs. -333||Cash (Cr): Rs. 235|
|Total Debt (Cr): Rs. 6,640||Promoter’s Holdings (%): 17.46|
Are Green Energy Stocks Worth Investing?
Green energy stocks are indeed the future. Here are a few of the reasons why you must consider investing in green energy stocks.
- Evergreen stocks
We all are aware of the fact that global warming and climate change are some of the major concerns of the world. To solve this problem green energy was introduced where energy is generated using natural resources using solar, wind and water.
To save the environment the world has already started taking measures by replacing fossil fuel vehicles with electric vehicles or CNG vehicles as they are sulphur-free and it reduces harmful emissions.
Many energy-efficient appliances have come into existence such as solar water heaters, wind turbines, geothermal heat pump systems, hydropower, etc. and the companies which are involved in manufacturing such appliances will always be in demand.
- The government is making constant efforts to save the environment
As green energy is the future, governments of various countries have started investing in the green energy sector. They have been making conscious efforts towards saving the environment by setting up green energy projects. Due to this, the growth opportunities in the sector have drastically increased and companies are trying to beat competition with innovation.
So, if you invest in the right green energy stock with due diligence then you can expect good returns in the long term.
- The prices of fossil fuels are unstable
The prices of crude oil are always unpredictable. During the pandemic, as the demand for crude oil dropped, so did the prices. Likewise, recently the prices of crude oil hiked with increasing demand. Crude oil is a limited resource. With changes in demand and supply, the prices of crude will also keep changing.
This is not the case with green energy. Green energy such as solar, hydro and wind are forever resources. So, if the demand increases, all companies need to do is work efficiently towards setting up new projects to fulfil the demand. This in turn will increase their revenue and the share price.
- ESG Investing is picking up
Investors today are more interested in sustainable living and investing. Hence, the demand for Environmental, Social and Governance Investing or ESG investing is rising. So, the investors today prefer investing in a company which is making conscious efforts towards saving the environment.
The boom of ESG investing could also be seen in the returns offered by ESG stocks.
In the last five years, ESG index has outperformed Nifty 50 index where, ESG Index has delivered a Compound Annual Growth Rate (CAGR) of 10.80% as of October 2020 whereas, Nifty 50 delivered a CAGR of 8.99% in the same period.
How to Invest in the Best Green Energy Stock?
There are numerous green energy stocks listed on the stock exchange. But, investing in the right green energy stock which has the ability to generate good returns for you is what matters the most.
I’m sure investors mostly don’t have the time or the conviction to research each stock. Hence, we have bought you a shortcut through which you can analyse if a stock is worth investing or not. Presenting Samco Stock Ratings. It analyses more than 20 million data points and rates every stock between one star to five stars based on 50+ rating parameters. You also get detailed observations in the form of pros and cons which gives you an insight on which stocks to buy and which to stay away from.
So, to find the best green energy stock, visit the Samco Stock Rating page now!
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