Introduction:
The global shift towards sustainable and renewable energy sources has been prominent in recent years, and India is no exception. As the country aims to meet its ambitious renewable energy targets, the solar energy sector stands out as a beacon of hope. Investing in solar energy stocks in India can be a lucrative opportunity for investors looking to align their portfolios with the nation's green energy push.
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What are solar energy stocks?
Solar energy stocks refer to shares of companies involved in the solar energy industry. These companies are engaged in various aspects of the solar energy value chain, including the manufacturing of solar panels, the development and installation of solar projects, and the provision of related technologies and services. Investing in solar energy stocks allows you to participate in the growth and profitability of companies looking to leverage the immense potential of solar power.
Top solar energy stocks to invest in India in 2024
The Government of India has recognised the significance of solar energy and has taken several initiatives to boost the solar infrastructure and market in India. This has resulted in a recent boost in the stock prices of several solar energy companies. Below are the top-performing solar energy stocks in India that are expected to continue going north in 2024:
1. Adani Green Energy Limited (AGEL)
Adani Green Energy Limited (AGEL) is one of the largest renewable energy companies in India. It boasts a diverse portfolio comprising solar and wind energy projects. With a strong commitment to sustainable energy practices, AGEL is poised for significant growth in the future. As of 23 February 2024, Adani Green Energy stocks were trading for Rs. 1,923.30 per share at the National Stock Exchange (NSE). The one-year return of these shares stood at a whopping 310.96%. The company's P/E ratio was also impressive at 209.08.
2. Tata Power Company Limited
Tata Power Company Limited is a pioneer in solar panel manufacturing and engineering services. The company is a subsidiary of the prestigious Tata Group. With a focus on innovation and expanding solar production capacity, Tata Power Company is well-positioned to benefit from the increasing demand for green energy. As of 23 February 2024, the shares of this company were trading for Rs. 378.40 per share at the NSE and Rs. 378.30 per share at the BSE. The company’s market capitalisation stood at Rs. 1,20,880 crores.
3. Azure Power Global Limited
Azure Power Global Limited is a market leader in solar power development, known for its utility-scale solar projects. The company has a strong track record of successful project execution and a growing portfolio of solar assets. As the demand for clean energy continues to rise, Azure Power is likely to see an uptick in its market presence. The company has contributed significantly to India’s clean energy target goals. As of 23 February 2024, the company’s market cap stood at 83.41 million US Dollars.
4. KPI Green Energy Limited
KPI Green Energy Limited is a small-cap company specialising in solar power generation as an Independent Power Producer (IPP). It offers services to customers operating as Captive Power Producers (CPP). The company is also engaged in developing and maintaining grid-connected solar power projects tailored for CPP customers. Talking about the performance, KPI Green Energy Limited stocks have zoomed by 459% in the last year and were trading for Rs. 1,805.55 per share at the NSE (as of 23 February 2024).
5. Waaree Renewables Limited
Waree Renewables Limited is one of the leading solar module manufacturers in India. With a focus on technological innovation and a commitment to quality, the company has evolved as a noteworthy player for investors seeking exposure to the manufacturing side of the solar industry. As of 23 February 2024, Waaree Renewables’ shares were available for Rs. 5,383.05 per share at the BSE.
To conclude
As India continues to emphasise producing clean and renewable energy, the solar sector presents exciting investment opportunities. However, you must conduct thorough research, consider the financial health of the companies, and stay updated on the regulatory environment while investing. With Motilal Oswal, you can avail yourself of financial advisory services and make well-informed investment decisions.
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