Top 5 Green Energy Stocks in India

1 Mar 2022  Read 48303 Views

Have you ever been to a museum? Even if you haven’t, you must have been a viewer of some science channel at some point in your life. Either way, you must have seen or come across the idea of a fossil. The bones of an animal from way back when, or an imprint of a tree or leaf on a rock, not only look cool, they are of great scientific importance as well. That’s a piece of a living thing from so long ago that has travelled through time to tell you its tale.

Now imagine you’re looking at a fossil, and some fellow just walks in and burns it! “Why?” you ask. “For energy”, you’re told.

I’ll be the first to admit that I have oversimplified the very complex operation of fossil fuels for dramatic effect. But it is, if not wholly so, the truth.

To add fuel to the fire (get it?), not only do fossil fuels deplete the store of valuable historical and scientific data, but they also harm the environment through the creation of greenhouse gasses and the release of pollutants into the air. Thus, “green energy” has become the need of the present.

Why switch to Green Energy?

To better understand the need for green energy, we must first understand its counterpart. Fossil fuels are made from dead organic matter found in the earth’s crust. This organic matter is rich in carbon and hydrogen and releases energy when burned.

Fossil fuels are comprised of coal, oil and natural gas. They are the most prevalent fossil fuels due to their abundance, efficiency, and relatively cleaner burning. But these benefits come at a cost. Although natural gas is the cleanest fossil fuel, when burned at massive rates like the present, the cumulative release of pollutants mitigates this benefit. Coal and oil already have the “unclean” tag on them, which means they release the most contaminants among all fossil fuels.

Fossil fuels are also non-renewable, which means that although they occur naturally in the planet’s crust, the rate at which they are replenished is less than the rate at which they are consumed.

Thus, to serve as a solution on these two troubled fronts, green energy was discovered or, rather, popularised; to shift the world’s need from the current sources of energy. Green energy is an umbrella term that comprises all the sources of energy that have little-to-negligible emissions and are renewable. Solar, wind, hydroelectric and geothermal are the most common sources of green energy.

And where there is a need, there is an opportunity to capitalise on said need. Various companies have been created anew or as subsidiaries to existing corporations to profit from this rising need for alternative energy.

Not only is profit the incentive for this switch, but owing to the ill effects of fossil fuels, various governments are also pushing for the switch from non-renewable to renewable energy sources. 

The Indian Government has planned to increase the renewable energy production capacity to 500 GW by 2030. For reference, the renewable energy production capacity was around 10 GW in 2005, which was increased to around 100 GW by December 2021. That’s growth by a whopping 16.6% CAGR in 16 years.

Well enough Environmental Studies, it’s time we get financial and look at the top 5 green energy stocks in India (you are on the Finology Blog, after all, not the Environmentology blog).

Top 5 green energy stocks in India

These are my top picks of listed companies in the Green Energy Sector:

  • Adani Green Energy Ltd.

We start with the big leagues. The conglomerate is famed for its famous Fortune Oil and FMCG products. Led by Vneet Jaain, the green energy company currently has a production capacity of 13,990 MW.

This is the only company on our list that has wind, solar, and hybrid power as its product offering. Here’s a look at its financials:

  • Borosil Renewables Ltd.

As soon as I read Borosil, the “wannabe baker” in me got very excited, then confused. How does a bakeware company make renewable energy? On further inspection, I found that Borosil is a glass company with an offering that’s not just limited to consumer bakeware.

The glass giant also engages in the production of labware and solar glass. Borosil Renewable is the only company that produces solar glass in India. With a factory in Bharuch, Gujarat, Borosil Renewables fulfils around 40% of India’s solar glass needs. Here’s what the company’s financials look like:

  • Websol Energy System Ltd.

The company is engaged in producing photovoltaic crystalline solar cells and related modules. The company is one of the largest solar cell manufacturers in India.

A look at the company’s performance:

  • Zodiac Energy Ltd.

Zodiac Energy Ltd is engaged in providing solar energy solutions to other solar power companies. The services provided by Zodiac Energy include; design, supply, installation, Testing & Commissioning (EPC) and Operation and Maintenance (O&M) of relevant equipment.

In the past, Zodiac Power has been associated with power conglomerates like Adani Group, Sun Edison India Ltd., Torrent Power Ltd., Gujarat Energy Development Agency, etc. Here’s what the company looks like on paper:

  • KP Energy Ltd.

Formed in 2010, KP Energy Ltd is a subsidiary of the KP Group of Companies. KP Energy Ltd. is engaged in the production of wind energy infrastructure.

This is the company’s performance quantified:

Expert Recommendations

With green energy capturing the forefront of the power industry’s attention, you as an investor would naturally want to capitalise on an up and coming sector. But irrespective of how well-versed you are in the stock market, you cannot possibly keep track of every industry or the possible strong players it may possess. So what do you do if you wish to add some valuable stocks from a lucrative market to your portfolio?
What you do is relax and head straight over to Recipe by Finology. With Recipe, you get recommendations curated by financial experts. Recipe also has Investment Insights to give you a quick rundown of businesses or industries that deserve a quick notice. So head on over to Recipe and take control of your personal finance.


Powering Down

As time progresses, people’s needs and necessities will develop and change. If not people’s needs, the available resources on the planet will fluctuate. Businesses need to change and grow accordingly to keep up with these changes. Not only will old businesses change, but new ones will also emerge to capitalise on these changes.

As an investor, staying aware of these developments to keep an eye out for shares with potential seems like a good idea.

Which shares do you think will benefit the most from this rising need for Green Energy? Tell us in the comments section below.

Until then, happy investing.

*Disclaimer: The stock(s) discussed above aren't recommendations from Finology, they are only picked to make you understand the concept.

About the Author: Deb P Samaddar | 233 Post(s)

Deb is a keen learner and eager to learn about the finance world. With an increased proclivity towards tech and language, he aims to capitalise on his interests as a content writer at Finology.

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