Top Green Energy Stocks in India for August 2024 Based on 5-yr CAGR

Green energy stocks in India represent a rapidly growing segment of the investment landscape, driven by the country’s commitment to expanding its renewable energy sector. Before we look into the list of stocks, it is important to understand what are green energy stocks.

Green energy stocks are shares in companies that produce, develop, or use energy sources that have minimal environmental impact and are sustainable over the long term. In India, this includes companies engaged in solar, wind, hydro, and other renewable energy projects that reduce carbon emissions and combat climate change.

The Ministry of New and Renewable Energy aims to achieve 500 GW of non-fossil-based electricity generation by 2030, which is in line with the Prime Minister’s COP26 commitment. In 2023, the sector saw the addition of 13.5 GW in renewable energy capacity, representing an investment of approximately ₹74,000 crore (US$ 8.90 billion).

As India continues to invest heavily in renewable energy infrastructure to meet its ambitious sustainability goals, green energy stocks have become increasingly attractive to investors. In this article, check the top green energy stocks in India in 2024, based on the 5-yr CAGR.

List of Green Energy Stocks in India – August 2024

Note: The green energy stocks list provided here is as of August 14, 2024. The stocks are sorted based on the 5-yr CAGR.

Overview of 5 Green Energy Stocks in India 

1. Adani Green Energy Ltd

Adani Green Energy is a major player in India’s renewable energy sector, focusing on solar and wind power projects. It became the first company in India to reach 10,000 MW of renewable energy capacity. In FY 2024, the company reported revenue from power supply of ₹7,735 crores and a cash profit of ₹3,986 crore.

Key metrics:

• Net profit margin: 10.23%
• Return on capital employed (ROCE): 10.82%
• Debt to Equity: 371.72%

2. Suzlon Energy Ltd

Suzlon Energy specialises in wind turbine manufacturing and provides comprehensive wind energy solutions. In FY 2024, Suzlon Energy achieved a total income of ₹6,567.51 crore and a PAT of ₹660.35 crore.

Key metrics:

• Net profit margin: 10.05%
• ROCE: 29.19%
• Debt to Equity: 176.31%

3. Inox Wind Ltd

Inox Wind focuses on wind energy solutions, including the manufacturing of wind turbine generators and is a wind energy solutions provider. In FY 2024, Inox Wind reported a total income of ₹1,64,094 lakh and a loss for the period of ₹23,031 lakh.

Key metrics:

• Net profit margin: -2.25%
• ROCE: 6.14%
• Debt to Equity: 106.84%

4. JSW Energy Ltd

JSW Energy is involved in the generation and distribution of energy, with a growing focus on renewable sources such as solar and wind power. In FY 2024, JSW Energy reported a total income of ₹11,941 crore and a net profit of ₹1,723 crore.

Key metrics:

• Net profit margin: 14.41%
• ROCE: 8.36%
• Debt to Equity: 150.25%

5. NTPC Ltd

NTPC, primarily known for its thermal power generation, is also expanding its renewable energy footprint with significant investments in solar and wind projects. In FY 2024, NTPC’s total income was ₹1,81,165.86 crore, and its net profit was ₹21,332.45 crore.

Key metrics:

• Net profit margin: 11.32%
• ROCE: 10.63%
• Debt to Equity: 143.61%

Green Energy Sector Updates 

Due to its vast size and significant potential for growth and development, India’s energy demand is projected to rise more rapidly than any other country. To address this increasing demand, a substantial portion must be satisfied through low-carbon, renewable sources. The country’s commitment to achieving net zero carbon emissions by 2070 and sourcing 50% of its electricity from renewables by 2030 represents a landmark moment in the global fight against climate change.

As of 2023, India ranks fourth globally in wind power capacity, solar power capacity, and overall renewable energy installed capacity. The installed renewable power capacity has surged, with a CAGR of 15.4% from FY16 to FY23, reaching 125.15 GW.

India is the fastest-growing market for renewable electricity, with expectations to double new capacity additions by 2026. As the country aims to meet its projected energy demand of 15,820 TWh by 2040, renewable energy will be crucial in fulfilling this need.

Conclusion

As India advances towards its renewable energy goals, green energy stocks are becoming a pivotal part of the investment landscape. Apart from these stocks, several other companies are engaged in the green energy sector. However, before making a decision, make sure to consider your investment objectives and risk appetite. Talk to your financial advisor and invest wisely.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.