Renewable Energy stocks in India in 2023| Green Energy stocks in India. Vision: Clean India, Green India.
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Renewable Energy Stocks – Be prepared for the future energy
The world is currently experiencing rapid and profound transformations, characterized by heightened competition and a pursuit of power among nations, which has left it in a vulnerable state. Alongside remarkable progress in certain areas, there is a darker side that cannot be ignored. This progress has inflicted significant harm upon nature, giving rise to urgent concerns such as climate change and ecological imbalances. The consequences of these issues manifest in our everyday lives through phenomena like heatwaves, unpredictable rainfall patterns, severe floods, droughts, rising sea levels, and ozone depletion. While noteworthy achievements are celebrated, the extent of environmental damage continues to be vast and unrestricted.
The positive aspect is that governments of various countries, along with responsible citizens, have begun to prioritize environmental concerns, taking numerous steps to address them. While the implementation of these plans will require time, they hold the potential for long-term benefits. One prominent strategy involves transitioning from conventional energy sources to renewable ones, signaling a shift towards sustainability.
With that being said, the mission to mitigate the impact of these global phenomena has brought the world together, uniting everyone in a collective pledge to combat this situation. It’s worth highlighting a few initiatives undertaken by countries in this regard.
Daily News
“G20 Summit Sparks 10% Surge in Renewable Energy Stocks as India and US Pledge $1 Billion Investment”
In the wake of the recent G20 summit, held just days ago, the Renewable Energy sector experienced a remarkable upswing. Monday’s trading session witnessed a substantial surge, with stocks in the sector soaring by up to 10%. This surge can be attributed to the promising commitment made by India and the United States, who jointly announced a monumental $1 billion investment in the renewable energy sector.
Also read: G20 Meeting Impact On Stocks: Potential Stock Market Winners
COP-27
India actively participated in the Conference of Parties (COP 27), which took place in Sharm El Sheikh, Egypt, from November 6 to November 20, 2022.
India launched the MoEFCC (Ministry of Environment, Forest and Climate Change) – UNDP Compendium “Prayaas Se Prabhaav Tak – From mindless consumption to mindful utilization’’ on the sidelines of COP27.
According to the Climate Change Performance Index 2023, India has been ranked 8th out of 63, thanks to its low emissions and the increasing use of renewable energy.
During the conference, India made significant efforts to address environmental challenges and contribute to global sustainability.
The Indian Express│COP-27 and its dialogue with world
- Net zero – India’s long term goal is reaching net-zero emissions by 2070.
- The National Hydrogen Mission launched in 2021 aims to make India a green hydrogen hub.
- The country also has clean energy plans such as 20% ethanol blending with petrol to burn less fossil fuel by 2025
- The electric vehicle project has been on the government’s focus for at least five years.
Livemint│MoEFCC – UNDP Compendium
Glasgow meeting of climate change- COP26
On 13 November 2021, the participating 197 countries agreed to a new deal, known as the Glasgow Climate Pact, aimed at staving off dangerous climate change. More than 40 countries pledged to move away from coal. India promised to draw half of its energy requirement from renewable sources by 2030 and achieve carbon neutrality by 2070.
2021 United Nations Climate Change Conference – Wikipedia
The government’s actions leave no room for doubt that renewable energy sources are not only the future for India but also for the rest of the world. The government’s firm commitment to transitioning towards green energy lays the foundation for positive growth in the energy industry. These initiatives aim to facilitate the replacement of conventional energy sources with renewable ones in the coming years.
Undoubtedly, the demand for existing industries in the renewable sector is expected to multiply, attracting new players and intensifying competition. These factors collectively indicate a bright future for the renewable sector, bringing positive news for investors today.
Also read: Best Green Hydrogen Stocks In India: Profit With Purpose
In the coming years, the renewable energy sector is poised to flourish, making it the primary focus of this article as we highlight stocks specifically within this sector. The stocks are:
Let’s look at some of the stocks in brief.
Tata Power Company Ltd
The first stock in the list of leading Renewable Energy Stocks in India in 2023 is Tata Power Company Ltd. The company is primarily involved in the business of the generation, transmission and distribution of electricity. It aims to produce electricity completely through renewable sources. It also manufactures solar roofs and plans to build 1 lakh EV charging stations by 2025.
The company demonstrates favorable profitability ratios, achieving a ROCE of 12.4% and ROE of 12.6%. Over the past year, the company experienced a notable increase in annual revenue, which rose by 29.3% to reach Rs 56,547.1 Crores. Moreover, the company’s stock price witnessed a 9.8% growth, surpassing its sector performance by 3.5%. Furthermore, the company achieved significant growth in annual net profit, which surged by 91.6% to reach Rs 3,336.4 Crores.
TATA POWER has demonstrated robust profit growth, achieving a five-year CAGR of 44.9% and an impressive three-year CAGR of 133%. Additionally, the company’s share price has witnessed significant increases, rising by 72% over the past three years and experiencing a respectable growth of 8.2% over the past year.
Waaree Renewables Technologies Ltd
The next stock in the list is Waaree Renewables Technologies Ltd which is engaged in the business of generation of power through renewable energy sources and also provides consultancy services in this regard.
The company showcases strong profitability ratios, with a ROCE of 84.1% and ROE of 96.2%. In the last year, the company experienced a significant increase in annual revenue, rising by 107.6% to reach Rs 352.5 Crores. Furthermore, the company achieved an impressive growth in annual net profit, surging by 544.2% to reach Rs 55.4 Crores. The company’s stock price also witnessed remarkable growth, increasing by 267.8% and outperforming its sector by 261.5% in the past year.
Waaree Renewables Technologies Ltd has achieved outstanding profit growth with a remarkable CAGR of 261% over the past five years and an impressive growth of 179% in the last three years. The company’s share price has experienced extraordinary gains, surging by an astounding 393% in the past year alone and witnessing a significant increase of 259.2% over the last three years.
Also read: Adani Green Energy Fundamental Analysis: From Crisis To Clarity
NHPC Ltd
NHPC Ltd, the leading green energy Stocks in India in 2023, engages in the business of generating hydroelectric power, undertaking contracts, managing projects, providing consultancy services, and conducting power trading activities.
In the past year, NHPC Ltd, has maintained profitability ratios with a ROCE of 8.92% and ROE of 10.8%. The company witnessed a noteworthy growth in its Annual Revenue, which surged by 11.2% to reach Rs 11,284.9 Crores. Additionally, NHPC Ltd recorded a 10.4% increase in Annual Net Profit, totaling Rs 3,890 Crores. Impressively, the company’s Stock Price experienced a remarkable growth of 47.3%, outperforming its sector by an impressive 41% during the previous year.
NHPC Ltd. has delivered robust profit growth, achieving a 5-year CAGR of 9% and a 3-year CAGR of 6%. Moreover, NHPC’s share price has seen impressive gains, rising by 31% over the last three years and soaring by 50.5% in the past year alone.
Gujarat Industries Power Co Ltd
Gujarat Industries Power Co. Ltd actively engages in the generation of power from gas, lignite, wind, and solar assets, positioning itself as the next stock on the list of leading stocks. It receives indirect promotion from the Gujarat State Government through three state undertakings, namely Gujarat Urja Vikas Nigam Ltd, Gujarat Alkalies & Chemicals Ltd, and Gujarat State Fertilizers & Chemicals Ltd.
Gujarat Industries Power Co. Ltd maintains a modest ROCE of 8.06% and ROE of 6.09%, indicating the need for improvement. The company witnessed a significant increase in Annual Revenue, which rose by 17.6% to reach Rs 1,403.7 Crores in the last year. Additionally, the Annual Net Profit also experienced growth, rising by 10.1% to reach Rs 188.7 Crores. In terms of stock performance, Gujarat Industries Power Co. Ltd observed a notable increase in its Stock Price, rising by 33.9% in the past year and outperforming its sector by 27.6%.
Gujarat Industries Power Co. Ltd. has had a negative profit growth over the last five years with a CAGR of -5%. Similar to this, with a CAGR of -9% over the past three years, the negative profit growth persisted. However, there has been a noticeable improvement in the last year, during which the business had a 10% increase in positive profit. Moreover, company’s share price has seen impressive gains, rising by 14% over the last three years and soaring by 34% in the past year alone.
EKI Energy Services Ltd
The last stock in out bucket of green energy stocks is EKI Energy Services Ltd. It provides a range of services including energy management, carbon management, and quality management. The company offers advisory services in climate change, renewable energy, trading, as well as audit, training, and event management. Its operations are categorized into segments such as Carbon Credits Trading, Climate Change Advisory Services, and Others.
EKI Energy Services Ltd maintains outstanding profitability ratios with a remarkable ROCE of 236% and ROE of 176%, indicating strong financial performance. The company witnessed a substantial increase in Annual Revenue, rising by an impressive 843% to reach Rs 1,801.3 Crores in the last year. Moreover, the Annual Net Profit experienced an exceptional growth of 1,950.6%, reaching Rs 383.4 Crores. However, the Stock Price of EKI Energy Services Ltd faced a significant decline of 70.7% in the past year, underperforming its sector by 104.4%.
Company has delivered good profit growth of 358% CAGR over last 5 years and 730% over the last three years and 1955% in trailing twelve months period. Over the last one year, EKI ENERGY SERVICES share price is down 71.4%.
Also Read: Best Stocks Under Rs. 500 To Invest In 2023.
BOTTOM LINE
It’s vital to recognise the long-term development potential of both the renewable energy sector and these particular firms, even though some stocks on the list may now have short-term difficulties. Despite their present performance, this industry is experiencing a slow but constant increase in demand, which suggests that these businesses have the ability to take over the market in the years to come.
Disclaimer
The blog is meant for informational purposes and serves the general analysis of the stocks. Contents provided here are based on careful research and analysis utilizing the fundamental and technical indicators over a period of time. The post does not consist any direct recommendation about Investing or trading in the securities market. Thorough research and careful consideration are necessary for individuals to fulfill their personal responsibility in making financial decisions. Seeking professional advice before making any financial decisions is always advisable.
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