Energy is one of the vital components of infrastructure. Therefore, it is essential for economic growth and development. India has a power sector that can be described as diverse, ranging from traditional sources such as coal, hydro, natural gas, oil, and nuclear energy, to less traditional sources like wind, bio-waste, and solar. The electricity demand has risen substantially over the years and is only estimated to grow with India’s expanding demographic. With all this in perspective, the best energy stocks in India could prove to be crucial investment avenues for investors. Additionally, the Indian government’s promise to bring electricity to every home in India will only accelerate the capacity for energy sources.
Why invest in the best energy stocks in India?
India stands third in the world for its primary energy consumption. This is after China and the United States of America. India consumes approximately 6% of the primary energy on a global scale. The primary energy source of India is coal. India may be exceedingly dependent on coal, but it also boasts 23 nuclear power reactors with plans to double this number by 2030. Nuclear power is the fifth largest power source in India and with plans to expand this and fulfil India’s need for long-term power consumption, the sector of nuclear power is well on its way to rapid development.
While talking of the best energy stocks for investment in India, investors may wish to think of green energy sources and invest in this growing industry too. Sustainability is the buzzword in every industry, and in the sector of energy, it is the most important to consider. While considering energy stocks, investors must note that energy connotes areas that go further than just gas and oil. Investors should also remember that the energy sector offers a wide variety of stocks in terms of companies that are involved with different energy sources and with various aspects of energy, from manufacturing to marketing processes. The energy sector, as you have gauged by now, is in constant expansion and development due to growing individual demands and demands at a national level.
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What are the energy stocks to buy in 2023?
In tandem with the climate agreements of Copenhagen and Paris, Indians are fast becoming believers in clean energy. In the last ten years, there has been a substantial ramping up of such sources, with governments, at the centre and state levels putting up tenders to create large-scale solar installations. Nonetheless, most of the reputed and stand-out energy companies are doing their bit to promote green and clean energy, and here are some of the best energy stocks in India that investors may consider:
This is a conglomerate that deals with everything from telecom and retail to energy and chemicals. In 2020, the chairman, Mukesh Ambani, made a statement to the effect that the company was invested in “New Energy” and had the vision to build Reliance Industries into an international name in the segments of New Energy and New Materials. Besides its regular energy business, the New Energy business works according to the principle of Circular Economy and Carbon Recycle. The company also has plans to make clean and green energy affordable and available to each Indian enterprise, each Indian utility and each Indian individual. Saving the planet is at the top of this company’s mind, besides thinking innovatively about energy sources which can make life better for every Indian.
With a foothold in the segment of wind energy, KP Energy is making significant strides in the harnessing of this power source. The stock has delivered good results and the returns of the company have been impressive. This is an emerging company among the big players in the energy sector, but it is committed to its endeavours to develop sustainable and lasting energy solutions.
Among the best energy stocks for investment, Adani Green has to be stressed as a company that is making leaps in the energy sector. If you wish to invest in a big player but one that is on the expansion path, this could be a choice to potentially think of. The company owns, controls, builds, operates and sees to the maintenance of grid-linked utility-scale wind power, hybrid projects, solar power and solar parks. It serves India at the domestic and national levels by providing renewable sources of energy at affordable rates. The varied range of power sources that this company touches upon gives it an edge in the competitive arena of energy companies.
The Oil & Natural Gas Corporation, or ONGC, has been a reliable stock to invest in, not least because it is owned and operated majorly by the Indian government. The company is involved in the processes of exploration, production and development of natural gas, crude oil and other value-added products. The company also engages in refining and marketing activities. The company has arms in India with onshore and offshore projects, as well as conducts overseas operations.
- Indian Oil Corporation Limited
IOCL, or the Indian Oil Corporation Limited, is a company based out of India and is considered one of the leading energy companies whose stock you may invest in. Now a Fortune 500 company, the new rank of this company makes it India’s highest-ranked public sector undertaking in 2022. With state-of-the-art technology and advanced operations, this energy giant commands respect among the best energy stocks in India. It has a far-reaching presence that touches almost all streams of energy, like petrochemicals, petroleum products, oil, gas, and alternative sources of energy. IndianOil recorded revenue from operations at ₹7,28,460 crores and a net profit of ₹24,184 crores for the FY 2021-22. The business interests of the company span the entire value chain of hydrocarbon, which includes pipeline and downstream operations.
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You can go ahead and invest in energy stocks based on your financial goals. What you need to do is open a demat account and then do some research on the energy companies you may be interested in. Then you may go ahead and buy the stocks you want. Alternatively, to boost your portfolio even more, you can invest in an energy upcoming IPO after learning about the same.
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