Table of Contents
Why Invest in Green Energy Stocks in India?
What are some of the Best Green Energy Stocks in India?
Oil and Natural Gas Corporation Limited (ONGC)
Indian Oil Corporation Limited (IOCL)
The green energy sector in India has witnessed remarkable growth and investment in recent years, creating opportunities for investors looking to capitalize on the country’s sustainable energy transition. With the Indian government’s strong commitment to renewable energy and favorable policies, the market for green energy stocks in India has become increasingly attractive.
Know about some of the best green energy stocks in India, stocks of companies that are leading the way in renewable power generation, solar and wind energy, energy efficiency, and electric mobility. By investing in the stocks of these progressive-thinking companies, you can not only contribute to a cleaner and more sustainable future but also potentially reap significant financial rewards.
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Why Invest in Green Energy Stocks in India?
Investing in green energy stocks in India offers several benefits.
- Firstly, green energy stocks in India typically provide high dividend yields, making them appealing to investors seeking regular income. Energy companies often have stable earnings and cash flows, allowing for consistent and growing dividends.
- Secondly, there is the potential for high returns with green energy stocks in India, particularly during periods of economic growth and increasing energy demand. As companies experience higher revenues and profits, investors may see capital appreciation.
- Lastly, green energy stocks in India provide diversification advantages. By investing in a range of energy companies across various sub-sectors (such as oil and gas exploration, refining, petrochemicals, and renewable energy), investors can reduce portfolio risk by spreading investments across different sectors and geographies.
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What are some of the Best Green Energy Stocks in India?
In the renewable energy sector in India, several companies have made significant strides in the last few years. Their green energy stocks in India are quite lucrative. These include:
Zodiac Energy Ltd
Zodiac Energy Ltd, established in 1992, is a prominent solar energy solution provider that has completed over 100 MW of solar installations. In 2020, the company became India’s top Residential Rooftop Installer, with over 5,500 rooftop solar installations. Zodiac Energy boasts an impressive 5-year Return on Investment (ROI) of 13.36% and 5-year absolute returns of 225.39%.
Reliance Industries Limited
An India-based company, it operates in various segments including Oil to Chemicals (O2C), Retail, Oil and Gas, Financial Services, and Digital Services. The O2C segment encompasses fuel retailing, refining, petrochemicals, aviation fuel, and bulk wholesale marketing. Reliance Industries’ assets include refinery off-gas crackers, aromatics, and downstream manufacturing facilities. In the Oil and Gas segment, the company engages in the development, exploration, and production of crude oil and natural gas.
Oil and Natural Gas Corporation Limited (ONGC)
It is another India-based company primarily involved in the development, exploration, and production of natural gas, crude oil, and value-added products. Its operations span both onshore and offshore areas in India, as well as outside India. Its green energy stocks in India are always in demand.
Indian Oil Corporation Limited (IOCL)
It is considered one of the best energy sector stocks in India. Its segments comprise Petroleum Products, Petrochemicals, and Other Business Activities. IOCL’s business interests cover the entire hydrocarbon value chain, including exploration and production, refining, pipeline transportation, marketing, alternative energy sources, gas marketing, and globalization of downstream operations.
GAIL (India) Limited
This is a natural gas processing and distribution company based in India. Its segments include LPG and Liquid Hydrocarbons, Natural Gas Marketing, Transmission Services, Petrochemicals, and Other segments. GAIL engages in sourcing and trading natural gas, production of liquid hydrocarbons, LPG, and petrochemicals, as well as transmission of natural gas and LPG through pipelines. Other activities of GAIL include City Gas Distribution, exploration and production, and power generation.
KP Energy Ltd
Operating since 2010, it is a notable player in the wind energy segment. The company owns around 8.4 MW of operational wind energy assets and has a power evacuation capacity of approximately 514 MW. KP Energy has diversified revenue streams encompassing Engineering, Procurement, Construction and Commissioning (EPCC), Independent Power Producers (IPP), and Operations & Maintenance (O&M).
Its achievements include winning accolades such as “Best Project Site Management Initiatives,” “Project Electrical Design Innovations,” and “Best Project EHS Management Initiatives” at the Wind Insider Engineering Excellence Awards India 2021. It was also recognized as the “Company of the year: Developer >1000 MW” at the India Wind Energy Forum 2021 Awards. The company demonstrates a 5-year ROI of 172.05% and 5-year absolute returns of 51.16%.
Borosil Renewables Ltd
Established in 1962, it holds the distinction of being India’s first and only solar glass manufacturer. The company recently expanded its production capacity to 2.5 GW per annum. Borosil Renewables received a National Award in 2021 for its successful commercialization of indigenous technology and pioneering achievements, including the development of the world’s first fully tempered 2 mm thick solar glass and the world’s first antimony-free solar glass. However, the stock’s 5-year ROI stands at -22.31% with 5-year absolute returns of 120.17%. Still, its green energy stocks in India are quite popular.
Websol Energy System Ltd
Founded in 1990, it specializes in manufacturing photovoltaic crystalline solar cells and related modules. Its modules find application in solar PV power plants, remote communication, and rural electrification. Websol Energy System is recognized as one of India’s largest solar cell manufacturers and upgraded its production facility in 2021 to accommodate larger-size wafers and achieve higher PV cell efficiency. The stock exhibits a 5-year ROI of 6.94% and 5-year absolute returns of -13.11%.
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NTPC Ltd
Founded in 1975, it is the largest energy conglomerate in India and ranks among the country’s top 10 Maharatna companies. It holds the distinction of being the No. 2 Independent Power Producer (IPP) in the Platts Top 250 Global Energy Company rankings. NTPC demonstrates a 5-year ROI of 6.74% and 5-year absolute returns of 24.90%. Investing in its green energy stocks in India can be promising.
Adani Green Energy Ltd
Established in 2015, it has emerged as one of India’s leading renewable energy companies, boasting a market capitalization of Rs. 89,878 crore. The company possesses a robust renewable energy portfolio of approximately 20,434 MW, encompassing wind, solar, and hybrid power solutions. Adani Green Energy is the only company in this list with such a diverse product offering. Its green energy stocks in India have a 5-year ROI of 5.62% and 5-year absolute returns of 1,525.71%.
Check our article on Which is the Top Stock in 2023 to Invest On?
Conclusion
As India strives to reduce its carbon footprint and embrace a greener future, the green energy sector is poised for tremendous growth. The best green energy stocks in India offer investors an opportunity to align their portfolios with the country’s sustainable development goals while potentially enjoying robust financial returns. Companies at the forefront of renewable power generation, solar and wind energy, energy efficiency, and electric mobility are positioned to benefit from government support, increasing consumer demand, and favorable market conditions.
By investing wisely in the aforementioned green energy stocks in India, you can play a vital role in shaping a cleaner, more sustainable, and prosperous India for generations to come.
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