Last Updated on Oct 11, 2024 by Vanessa Sequeira
Increasing environmental concerns, government support, and massive investments in the renewable energy sector in India are making it an attractive avenue for investors. Top conglomerates in the space are running at it in full swing, expanding assets and capacities to help achieve India’s 2030 target of reaching 500 GW installed capacity. In the Interim Budget 2024-2025, the government allocated Rs. 10,000 cr. for a grid-based solar power scheme, an increase from Rs. 4,757 cr. in 2023-24. Wind power funding was slightly raised to Rs. 930 cr. in 2024-25 from Rs. 916 cr. the previous year. In this article, we discuss the overview of the country’s best renewable energy stocks, challenges, prospects, and things to consider while investing in renewable energy shares in India.
Table of Contents
Best Renewable Energy Stocks in India
| Name | Sub-Sector | Market Cap (Rs. in cr.) | Close Price (Rs.) | PE Ratio | 1Y Return (%) |
| Ujaas Energy Ltd | Renewable Energy | 5,198.72 | 493.70 | 179.51 | 23,982.93 |
| Websol Energy System Ltd | Renewable Energy Equipment & Services | 4,026.27 | 953.95 | -33.29 | 721.31 |
| Tarini International Ltd | Renewable Energy | 50.69 | 39.00 | 844.87 | 550.00 |
| Zodiac Energy Ltd | Renewable Energy Equipment & Services | 964.49 | 638.90 | 87.84 | 416.70 |
| SRM Energy Ltd | Renewable Energy | 18.54 | 20.46 | -23.77 | 337.18 |
| Suzlon Energy Ltd | Renewable Energy Equipment & Services | 105,713.89 | 77.50 | 160.09 | 229.79 |
| SunGarner Energies Ltd | Renewable Energy Equipment & Services | 181.29 | 781.85 | 218.42 | 198.02 |
| KPI Green Energy Ltd | Renewable Energy | 11,918.44 | 908.00 | 73.72 | 189.08 |
| K.P. Energy Ltd | Renewable Energy | 2,719.62 | 407.80 | 46.63 | 181.14 |
| Azad Engineering Ltd | Renewable Energy Equipment & Services | 9,600.84 | 1,624.15 | 163.92 | 139.73 |
Note: The data is as of 27th August 2024. The list of best renewable energy stocks in India was derived using Tickertape’s Stock Screener using the following filters:
- Category: Renewable Energy and Renewable Energy Equipment & Services
- 1Y Return: Sorted from highest to lowest
If you are wondering about what are the top green energy companies in India, read the article on ‘Best Green Energy Stocks in India’.
🚀 Pro Tip: Select the filter “Dividend Yield” to identify top dividend yielding stocks.
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Overview of the Top Renewable Energy Stocks in India
Ujaas Energy Ltd
Ujaas Energy Ltd, founded in 1979, is a leading company in renewable energy in India. It specialises in the development, design, and management of solar power plants, offering end-to-end solutions, including engineering, procurement, and construction (EPC) services.
The market capitalisation of Ujaas Energy Ltd is Rs. 5,198.72 cr., with a close price of Rs. 493.70. The company’s price-to-earnings (PE) ratio is 179.51, and the 1-yr return is 23,982.93%.
Websol Energy System Ltd
Websol Energy System Ltd, established in 1994, is engaged in manufacturing photovoltaic crystalline solar cells and modules. One of the top renewable energy companies in India, this company supplies solar products to various clients globally and is involved in both on-grid and off-grid solar power projects.
Websol Energy System Ltd has a market capitalisation of Rs. 4,026.27 cr., and a close price of Rs. 953.95. The PE ratio is -33.29, and the 1-yr return is 721.31%.
Tarini International Ltd
Tarini International Ltd, founded in 1999, operates in the industry of renewable energy in India, particularly in the development and management of hydroelectric and solar power projects. The company also provides consultancy and EPC services related to renewable energy projects.
The market capitalisation of Tarini International Ltd is Rs. 50.69 cr., with a close price of Rs. 39.00. The company’s PE ratio is 844.87, and the 1-yr return is 550.00%.
Zodiac Energy Ltd
One of the top renewable energy companies in India, Zodiac Energy Ltd was incorporated in 1992 and is focused on providing renewable energy solutions, particularly in the design and installation of solar power systems. The company offers EPC services for solar power projects, including rooftop and ground-mounted installations.
Zodiac Energy Ltd has a market capitalisation of Rs. 964.49 cr. and a close price of Rs. 638.90. The PE ratio is 87.84, and the 1-yr return is 416.70%.
SRM Energy Ltd
SRM Energy Ltd, established in 1985, is engaged in the renewable energy sector, with a focus on the development of solar and wind energy projects. The company aims to expand its footprint in sustainable energy production across India.
The market capitalisation of SRM Energy Ltd is Rs. 18.54 cr., with a close price of Rs. 20.46. The company’s PE ratio is -23.77, and the 1-yr return is 337.18%.
Suzlon Energy Ltd
Founded in 1995, Suzlon Energy Ltd is one of India’s leading companies in the renewable energy equipment and services sector. It is involved in the manufacture of wind turbine generators and offers comprehensive renewable energy solutions, including project development, installation, and operations.
Suzlon Energy Ltd has a market capitalisation of Rs. 105,713.89 cr. and a close price of Rs. 77.50. The PE ratio is 160.09, and the 1-yr return is 229.79%.
SunGarner Energies Ltd
SunGarner Energies Ltd, established in 2015, operates in the renewable energy equipment and services sector, specialising in solar energy solutions. The company offers EPC services for solar power projects, including design, supply, installation, and maintenance.
The market capitalisation of SunGarner Energies Ltd is Rs. 181.29 cr., with a close price of Rs. 781.85. The company’s PE ratio is 218.42, and the 1-yr return is 198.02%.
KPI Green Energy Ltd
KPI Green Energy Ltd, founded in 2008, is focused on the renewable energy sector, particularly in the development and operation of solar power projects. The company provides solutions for both on-grid and off-grid solar energy systems, catering to industrial and commercial clients.
The market capitalisation of KPI Green Energy Ltd is Rs. 11,918.44 cr., with a close price of Rs. 908.00. The PE ratio is 73.72, and the 1-yr return is 189.08%.
K.P. Energy Ltd
K.P. Energy Ltd, established in 2010, operates in the industry of renewable energy in India, with a focus on wind power projects. The company provides comprehensive services, including EPC, project development, and operations and maintenance of wind energy projects.
The market capitalisation of K.P. Energy Ltd is Rs. 2,719.62 cr., with a close price of Rs. 407.80. The company’s PE ratio is 46.63, and the 1-yr return is 181.14%.
Azad Engineering Ltd
Azad Engineering Ltd, founded in 2008, is involved in the renewable energy equipment and services sector, manufacturing components for wind and solar energy systems. One of the top renewable energy companies in India, this company also provides engineering services to support renewable energy projects globally. Azad Engineering Ltd has a market capitalisation of Rs. 9,600.84 cr. and a close price of Rs. 1,624.15. The PE ratio is 163.92, and the 1-yr return is 139.73%.
What are Renewable Energy Shares in India?
Renewable energy sector stocks are shares of companies involved in the production, technology, or services related to renewable energy sources like solar, wind, and hydroelectric power. These stocks represent investment in the transition to cleaner, sustainable energy alternatives to fossil fuels.
To learn about the difference between renewable and green energy, click here.
Top 10 Renewable Energy Penny Stocks in India
| Name | Sub-Sector | Market Cap (Rs. in cr.) | Close Price (Rs.) | PE Ratio |
| Ind Renewable Energy Ltd | Renewable Energy Equipment & Services | 19.41 | 13.94 | 388.25 |
| Jaiprakash Power Ventures Ltd | Renewable Energy | 12,473.30 | 18.20 | 12.21 |
| SRM Energy Ltd | Renewable Energy | 18.54 | 20.46 | -23.77 |
| Orient Green Power Company Ltd | Renewable Energy | 2,473.92 | 21.09 | 64.43 |
| Urja Global Ltd | Renewable Energy Equipment & Services | 1,164.40 | 22.16 | 570.79 |
| Indowind Energy Ltd | Renewable Energy | 324.84 | 25.22 | 44.68 |
| Energy Development Company Ltd | Renewable Energy | 134.90 | 28.40 | -62.45 |
| Surana Solar Ltd | Renewable Energy Equipment & Services | 183.25 | 37.24 | -145.43 |
| Tarini International Ltd | Renewable Energy | 50.69 | 39.00 | 844.87 |
| Agni Green Power Ltd | Renewable Energy | 92.89 | 47.55 | 244.44 |
Note: The data is as of 27th August 2024. The list of best renewable energy shares in India was derived using Tickertape’s Stock Screener using the following filters:
- Category: Renewable Energy and Renewable Energy Equipment & Services
- Close Price: Sort from lowest to highest
Types of Renewable Energy Sector Stocks in India
- Clean energy stocks: Shares of any company related to renewable energy in India can be a clean energy stock. This includes alternative transportation technologies.
- Solar and wind energy stocks: As the name suggests, these are more focused and associated with solar and wind energy.
- Hydroelectricity stocks: These are companies that use flowing water to generate energy. Currently, hydroelectricity is one of the most popular resources used and is only expected to rise over time.
Overview of the Renewable Energy Sector in India
India’s renewable energy sector is experiencing rapid growth, making it a key player in the global clean energy transition. The country’s renewable electricity capacity is expanding faster than in any other major economy, with projections to double by 2026. India has already surpassed its COP21 commitment by achieving over 40% of its power capacity from non-fossil sources. It aims for 500 gigawatts of renewable energy capacity by 2030, supporting its goals to reduce emissions intensity by 45% and achieve net-zero emissions by 2070. This growth is driven by significant increases in solar and wind capacity, alongside ambitious plans for green hydrogen production.
Benefits of Investing in Renewable Energy Stocks
Investing in renewable energy stocks in India offers several compelling reasons:
- Booming sector: Government initiatives are propelling the renewable energy sector, leading to significant growth and investment opportunities.
- Government incentives: Incentives and subsidies from global governments make green energy stocks attractive investment avenues.
- Eco-friendly: Investments in renewable energy contribute to a sustainable and environmentally friendly future.
- Reducing carbon footprints: Aligns with India’s goal to reduce carbon emissions by one billion tonnes by 2030, supporting global climate change efforts.
- Portfolio diversification: Renewable energy shares in India can diversify investment portfolios, potentially reducing risk.
- Rapid growth: India’s renewable energy sector is witnessing the highest Y-o-Y growth, with significant increases in solar and wind capacity.
- Increasing demand: With the country’s power requirement projected to grow significantly, renewable energy companies in India are poised to meet a substantial portion of this demand.
- Rising investments: The sector has attracted significant foreign direct investment, indicating strong investor confidence and future growth potential.
These factors make renewable energy shares in India, even renewable energy penny stocks, an attractive option for investors looking to capitalise on the country’s shift towards sustainable energy solutions.
How to Identify the Best Renewable Energy Sector Stocks?
If you are looking to invest in renewable energy stocks in India, it may be important to consider several key factors to identify the best options.
- Company’s Market Position and Growth
You might start by looking at the company’s market position and its potential for growth. Companies that have a strong presence in renewable energy, such as solar or wind, and are expanding their capacity could be promising. Focusing on top renewable energy companies in India may help you find those with a proven track record in the sector.
- Financial Stability
While looking at the renewable energy stocks list, it may be useful to assess the financial health of these companies. Check the Indian renewable energy shares for low debt levels, positive cash flow, and consistent profitability, which can provide insights into how well a company is positioned to handle market fluctuations. For instance, renewable energy penny stocks in India might carry higher risks, so looking into their financials could be crucial.
- Government Support and Policies
Understanding government policies and support for renewable energy could also be helpful. Companies benefiting from subsidies or incentives may have an advantage. Tracking the share of renewable energy in India and upcoming projects could offer clues about which stocks might perform well.
- Industry Trends and Technological Advances
Check out the renewable energy share list and keep an eye on the trends of the renewable energy industry in India. Technological innovations might reveal which companies are at the forefront. Companies that are investing in new technologies or expanding into emerging areas like offshore wind or energy storage may offer better growth prospects among green energy stocks. When evaluating renewable energy shares in India, a mix of market position, financial health, government policy, and industry trends may help you find the most promising investments in this growing sector.
How to Invest in the Renewable Energy Sector?
There are a number of ways by which you can invest in renewable energy—stocks, mutual funds, and ETFs. To discover renewable energy stocks in India, use Tickertape’s Stock Screener and select the ‘renewable energy’ as the sector. Additionally, you can use other parameters that matter to you; they can be net income, total debt, and more.
Once you get a list of clean energy stocks in India, make sure to evaluate them individually using Stock Pages. Look at their finances, compare with peers, evaluate their holding patterns and more. Doing this will give you a well-rounded understanding of the stock’s past performance and prospects, which will help you decide whether to invest in it or not.
If you want to invest in mutual funds and ETFs, find options that invest in the green energy sector and evaluate them thoroughly. Pick the best one based on your research and investment goal.
Challenges Around Renewable Energy Sector in India
The challenges surrounding renewable energy in India include:
- Cost burden of legacy infrastructure: High transmission and distribution losses prevent decisive investments in renewables, keeping the energy sector reliant on coal.
- Financing the transition: The renewable energy industry in India has an ambitious plan to add significant renewable capacity, which requires trillions of dollars, necessitating access to low-cost financing.
- Grid reliability: The massive increase in infirm power sources challenges grid stability, especially as India lacks a transition fuel like natural gas.
- Intermittency and variability: Renewable sources like solar and wind are not constant, leading to challenges in maintaining a stable energy supply.
- Location-specific potential: Optimal locations for renewable energy projects are often far from consumers or the grid, complicating transmission.
- Higher costs compared to fossil fuels: Despite falling prices, renewables can still be more expensive than traditional energy sources, impacting economic feasibility.
- Weak and unstable grid: India’s grid infrastructure struggles to handle the variability and intermittency of renewable energy, requiring significant upgrades.
- Lack of incentives for peaker plants: Without incentives for plants that can quickly ramp up or down, integrating a high percentage of renewables into the grid is challenging.
These challenges underscore the complexity of transitioning to renewable energy in India, necessitating innovative solutions and substantial investment.
Things to Consider Before Investing in the Best Renewable Energy Shares in India
- Due to recent hype in the renewable energy sector, some stocks may be overvalued. So ensure to do a valuation analysis before buying. You can use valuation ratios and other tools explained in What Is the Intrinsic Value of a Stock and How To Calculate It?
- Assess the debt position of these companies. Most of them, including Adani, SJVN, and NHPC, have considerable debt. Being funded by debt is not all that bad. However, a company should have ample cash flow to repay the debt and be on the greener side.
- Since the renewable energy sector is relatively new, many companies may not be profitable, while some may have just started reporting profits. So check out the top 10 renewable energy companies in India, making sure that the company is profitable can give you some respite. If profit is nil or low, assess their future plans and prospects. Can they become profitable by improving their operations, introducing new technology, and offering a new product line? If yes, are they capable of doing it? What are the management views, and what is their attitude? Gauge other supporting metrics and only then make a decision.
When you dig deeper into these stocks using Tickertape’s Stock Pages, you will notice trends in financial performance over the years. Be sure to check this data for the top 20 renewable energy stocks and collate news about the company operations and only make an investment decision.
Who Can Invest in the Best Renewable Stocks in India?
- Long-Term Investors: If you are focused on sustainable growth and willing to hold investments for years, renewable energy energy stocks from top companies in India may suit your strategy.
- Eco-Friendly Investors: If you care about green investing, green energy stocks can align with both your ethical values and financial goals, especially with rising government support.
- Diversifiers: If you want to spread your risk, adding renewable energy stocks to your portfolio could offer growth opportunities alongside stability.
- Tech Savvy Investors: If you are excited by innovation, consider companies advancing in solar, wind, or storage technology, as they might lead the future of energy in India.
To Wrap It Up…
Investment in renewable energy shares in India could be a particularly thrilling opportunity with the increasing demand for clean energy in India. The top renewable energy companies in India represent an exciting opportunity for long-term investors or risk-tolerant traders to further diversify their portfolios. Based on market position, financial status, government policies, and industry trends, you are able to pin down top green energy stocks in India that best suit your investment goals. As the renewable energy industry in India grows, these stocks will be great in terms of prospective growth and sustainability, adding value to your portfolio.
Frequently Asked Questions About Renewable Stocks
Can green energy be a good investment?
As per the International Energy Agency, global renewable energy is likely to increase to ~95% by 2026. Countries across the globe are slowly shifting towards green energy and are investing heavily to make the transformation quicker and smoother. These facts suggest that green energy is the future, which can make it a long-term investment option.
How to identify green energy penny stocks in India on Tickertape?
Penny stocks are stocks with the price of Rs. 10 or less. To identify green energy penny stocks list,
– Launch Tickertape Stock Screener
– Select “Renewable Energy and Renewable Energy Equipment & Services” categories
– Set the close price to Rs. 10 being the highest
Which are some solar energy stocks in India?
Solar energy companies are either focused on or associated with generating energy using the sun. Tata Power, JSW Energy, Sterling and Wilson, INOX Wind, and Adani Green Energy Limited are a few solar energy companies.
Which are some wind energy stocks in India?
Wind energy companies are either focused on or associated with generating energy using the wind. Suzlon Energy Limited, Inox Wind Limited, Regen Powertech Private Limited, Orient Green Power Limited, Enercon India Pvt Limited, and Gamesa Wind Turbines Private Limited are some wind energy companies in India.
What are green energy stocks?
Green energy stocks in India are companies involved in developing alternative technologies to replace fossil fuels with renewable resources like wind, solar, and hydroelectric. Renewable energy also includes supplementary technologies that will be instrumental in green energy transformation.
Where can you track Orient green power news?
You can keep track of Orient Green Power news on Tickertape. You can also get Orient Green Power’s share price, financials, shareholding patterns, and other information on the Stock Page.
How to identify the top 50 renewable energy companies in India?
To identify the top renewable energy companies in India which are fundamentally strong, launch the Tickertape Stock Screener and set up the screener with these filters:
Sector: Select “Renewable Energy.”
Market Cap: Include mid, and large-cap companies.
Net Profit Margin: <10%
Debt to Equity Ratio: 1-5%
Return on Equity (ROE):<15%
Analyse the first 50 from the renewable energy share list with the given filters.
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As an investment fanatic, I’ve dabbled in early-stage startups, mutual funds, gold, stocks, smallcases, and real estate to identify which assets generate the highest ROI. At Tickertape, I’m dedicated to presenting my learning and providing insightful suggestions to help my readers make sound investment decision.
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