Renewable Energy Stocks: For investors interested in portfolio diversification, investing renewable energy stocks can be an alluring opportunity at the moment as the government is aiming for big targets for the development of the energy sector. Let’s explore 3 of the best renewable energy stocks that one should consider before investing in 2025.
List of Best 3 Renewable Energy Stocks
Given below is a list of 3 best renewable energy stocks for investors. Check out the profiles given below:
1) NTPC Green Energy Limited
Better known as the risk rewarder or the long-race horse, the shares of NTPC are risky to hold but might provide bigger profits. For all those who love taking risks, NTPC Green Energy Limited is your business.
About the company
In order to propel NTPC’s growth in renewable energy and aid India’s transition to a sustainable future, a subsidiary of NTPC, NTPC Renewable Energy Ltd. was founded on October 7, 2020. In addition to spearheading the establishment of UMREPPs (Ultra Mega Renewable Energy Power Projects) under the initiatives of the Indian government, NTPCREL creates massive solar, wind, and hybrid projects around the country.
| Pros | Cons |
| With creative solutions and strategic alliances, NTPCREL is dedicated to helping India achieve its net-zero emissions target and guaranteeing a clean and energy-secure future. | Its low profitability in comparison to peers and excessive debt levels should make investors wary. |
| Execution of the project is powerful and quick. | Highly dependent on imports from countries like China. |
2) Adani Green Energy Limited
With its share of ups and downs, the shares of this company have gone through a lot of market correction. Although the monthly chart is witnessing a major selling at the moment and there is no doubt that the company is weak at the moment, the promoters have clearly started picking their stakes, which is a big deal for any business. Considering the strong portfolio of the company, the shares are promising and not to be mistaken among the weak.
About the Company
Among India’s biggest renewable energy firms, AGEL (Adani Green Energy Limited) has 20,434 MW of ongoing projects. As part of its commitment to give India a better, cleaner, and greener future, the Adani Group owns AGEL. Motivated by the Group’s “Growth with Goodness” philosophy, the company designs, maintains, constructs, owns, and runs grid-connected, utility-scale wind and solar farm projects. State and federal governments, as well as businesses supported by the government, receive the electricity produced.
| Pros | Cons |
| AGEL maintains strategic alliances with foreign institutions and investors. | At 0.68, the company’s interest coverage ratio is inadequate. |
| AGEL’s pipeline of current and future initiatives is robust. | Over the last three years, the company’s earnings growth has been a dismal -214.47%. |
3) Tata Power Renewable Energy Limited
Despite massive selling, Tata Power has strong chances to bounce back any time now. There is a lot of love and faith for the name TATA in India for the obvious reasons, as the business never disappoints its investors and has been bouncing back from time to time, allowing investors to make a big amount of money.
About the Company
With a long history of leadership in the Indian power industry, Tata Power is the country’s largest integrated power company. TPREL makes use of the vast knowledge and skills that Tata Power has accumulated over more than a century of managing power plants.
| Pros | Cons |
| TPREL has well-known partners and extensive networks. TPREL and Canara Bank have teamed up to encourage the use of rooftop solar power. | Manufacturing and EPC companies are vulnerable to fierce competition and shifting regulations. |
| The portfolio of the company is quite diversified. | Â Hefty Debts. |
Final Verdict
The above list of renewable energy stocks might keep you going in the long run, but patience is the key here, as not all renewable energy stocks are for short-term gains.
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Disclaimer: Demat Dive is not giving any buying advice on any stock. Consult a SEBI-registered advisor before investing anywhere.