Best Solar Energy Stocks In India In September 2024 – 5yr CAGR Basis

India has announced ambitious goals: achieving net-zero carbon emissions by 2070 and sourcing 50% of its electricity from renewables by 2030. This marks a major step in the global fight against climate change.

As of 2023, India ranks fourth in wind and solar power capacity and in total renewable energy capacity. The country has seen a rapid increase in renewable energy, with a growth rate of 15.4% annually from FY16 to FY23. By FY23, India had 125.15 GW of renewable energy capacity. It is the fastest-growing market for renewable electricity, with new capacity expected to double by 2026. Given this momentum, solar energy has become a key focus area, drawing the attention of investors. In this article, check the best solar energy stocks in India in September 2024 on a 5-year CAGR basis.

What Are Solar Energy Stocks in India?

Solar energy stocks in India represent shares of companies in the solar energy sector. These companies produce, install, and distribute solar energy products, including solar panels and inverters. Solar energy stocks include firms that manufacture solar components and provide related services such as installation and maintenance.

Best Solar Energy Shares in India in September As per 5-year CAGR

Note: The list of the best solar companies in India listed in stock market provided here is as of August 26, 2024. The stocks are picked from the Nifty 500 universe and sorted as per their 5-year CAGR.

Overview Of Best Solar Energy Stocks In India In September

1. Adani Green Energy

Adani Green Energy Limited (AGEL) is one of India’s largest renewable energy companies, focusing on producing clean energy. The company designs, builds, owns, operates, and maintains large-scale solar and wind power projects and hybrid projects and solar parks connected to the power grid. AGEL has a strong project portfolio totalling 20,434 MW in capacity.

For the most recent quarter, the company’s revenue decreased to ₹3,383.00 crore from ₹7,304.00 crore in the preceding quarter. Meanwhile, the net profit improved to a loss of ₹89.00 crore from a loss of ₹195.00 crore in the previous quarter.

Key Metrics of Adani Green Energy : 

• EPS: -2.71
• P/E: -700.46
• ROE: -5.73

2. Suzlon Energy

Suzlon is a top global provider of renewable energy solutions, specializing in wind turbine generators (WTG). The company is fully integrated, handling everything from manufacturing WTGs to their installation and ongoing maintenance. Suzlon designs and produces key components such as rotor blades, tubular towers, generators, control systems, gears, and nacelles.

For the most recent quarter, the company’s revenue increased to ₹1,480.02 crore from ₹1,428.61 crore in the preceding quarter. Meanwhile, the net profit improved to ₹121.14 crore from ₹74.49 crore in the previous quarter.

Key Metrics of Suzlon Energy: 

• EPS: 0.16
• P/E: 501.25
• ROE: 5.95

3. SJVN

Established in 1988, SJVN Limited is a major public sector company under India’s Ministry of Power. It plays a key role in developing hydropower projects, which support India’s clean energy targets. SJVN handles every stage of hydropower projects, from planning and design to construction, operation, and maintenance. The company is also working to diversify its energy sources by exploring solar and wind power opportunities to build a more sustainable energy portfolio.

For the most recent quarter ended June 2024, the company’s revenue increased to ₹831.73 crore from ₹461.68 crore in the preceding quarter. The net profit also improved significantly to ₹327.15 crore from ₹61.51 crore in the previous quarter.

Key Metrics of SJVN: 

• EPS: 2.46
• P/E: 54.43
• ROE: 6.88

4. NHPC

Founded in 1975, NHPC Limited is a major public-sector company under India’s Ministry of Power. It plays a crucial role in developing hydropower in India, which helps secure the country’s energy needs. NHPC handles every stage of hydroelectric projects, from planning and construction to operation and maintenance. The company operates some of India’s largest hydropower stations, showcasing its dedication to quality and innovation.

For the most recent quarter ended June 2024, the company’s revenue increased to ₹2,417.88 crore from ₹1,651.55 in the preceding quarter. The net profit also increased to ₹1,023.51 crore from ₹697.76 crore in the previous quarter.

Key Metrics of NHPC: 

• EPS: 3.70
• P/E: 26.26
• ROE: 9.97

5. Sterling and Wilson Renewable Energy

Sterling and Wilson Solar Ltd is a top global provider of complete solar engineering, procurement, and construction (EPC) solutions. The company also manages the operation and maintenance (O&M) of solar power projects. It benefits from strong backing by Reliance Industries.

For the most recent quarter ended June 2024, the company’s revenue decreased to ₹885.47 crore from ₹1,139.63 in the preceding quarter. The net profit also decreased to ₹73.59 crore from ₹88.89 crore in the previous quarter.

Key Metrics of Sterling and Wilson Solar: 

• EPS: 7.87
• P/E: 85.17
• ROE: 6.85

Future Outlook of Solar Stocks In India

India aims to cut its carbon intensity by 45% by 2030, get 50% of its electricity from renewables by 2030, and achieve net-zero carbon emissions by 2070.

By 2040, nearly 49% of electricity is expected to come from renewables, thanks to more efficient batteries and a 66% reduction in solar energy costs. Switching from coal to renewables could save India Rs. 54,000 crore (about $8.4 billion) annually. Between 2020 and 2025, around 15,000 MW of wind-solar hybrid capacity is expected to be added.

According to the Central Electricity Authority (CEA), by 2029-30, the share of renewable energy in electricity generation will rise from 18% to 44%, while thermal power’s share will fall from 78% to 52%. The CEA also estimates that India’s power demand will grow to 817 GW by 2030.

Conclusion

As India continues to work towards its 50% renewable energy targets by 2030 and net-zero emissions by 2070, the solar energy market can see substantial investment and expansion. However, it comes with certain risks, such as regulatory changes, macroeconomic factors and market volatility. So, make sure to do careful analysis and diversify your portfolio to navigate the evolving landscape and capitalise on the growth potential of India’s solar sector.

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.