The energy sector is quite diversified and up until a few decades back it comprised only fossil fuels as the main source. However, with climate awareness increasing day by day, the renewable sources segment is seeing a rapid increase. This is one of the prime pillars of the economy and the companies in this sector are seeing a rapid increase. Take a look at the top companies in the energy sector in terms of market capitalisation and their key details.
Read More: Best Renewable Energy Stocks in India in 2023
Top energy stocks on the basis of market capitalisation
The list of top energy stocks and their basic details are given below.
Reliance Industries Limited
The name Reliance is an industry giant in the Indian economy. Among the many business segments of this conglomerate is the energy business which involves producing and marketing petroleum products and renewable energy. This Fortune 500 company has many traditional business and newage businesses under their brand name Jio.
The key details of the company are tabled below. Figures as of September 11th, 2023
| Category | Details |
| Market Capitalization | Rs. 16,74, 206 crores |
| PE Ratio | 25.59 |
| Return on Equity | 9.04% |
| Debt Equity Ratio | 0.22% |
| Promotor’s Holdings | 50.39% |
| Share price | Rs. 2474.60 |
| Dividend yield | 0.37% |
The trailing returns of Reliance Industries Limited are tabled below
| Period | Trailing Returns |
| 1 year | -3.69% |
| 3 years | 2.26% |
| 5 years | 14.74% |
| 10 years | 18.82% |
NTPC Limited
NTPC (National Thermal Power Corporation) Ltd, along with its subsidiaries, associates, and joint ventures, primarily focuses on generating and selling large-scale electrical power to state power utilities. Additionally, the group is engaged in diverse activities such as offering consultancy services, managing and supervising projects, trading energy, exploring oil and gas resources, and participating in coal mining operations.
The key details of the company are tabled below. Figures as of September 11th, 2023
| Category | Details |
| Market Capitalization | Rs. 2,35,581 crores |
| PE Ratio | 12.41 |
| Return on Equity | 12.33% |
| Debt Equity Ratio | 1.28% |
| Promotor’s Holdings | 51.10% |
| Share price | Rs. 243.10 |
| Dividend yield | 3.02% |
The trailing returns of NTPC are tabled below
| Period | Trailing Returns |
| 1 year | 45.92% |
| 3 years | 38.98% |
| 5 years | 11.51% |
| 10 years | 7.73% |
Oil and Natural Gas Corporation Limited
ONGC (Oil and Natural Gas Corporation) stands as the leading company in India’s crude oil and natural gas sector, playing a pivotal role by contributing approximately 71% to the nation’s domestic production of these vital energy resources. This remarkable contribution underscores ONGC’s significant impact on the country’s energy landscape, solidifying its position as a key player in the Indian oil and gas industry.
The key details of the company are tabled below. Figures as of September 11th, 2023
| Category | Details |
| Market Capitalization | Rs. 2,30,848 crores |
| PE Ratio | 6.16 |
| Return on Equity | 15.03% |
| Debt Equity Ratio | 0.35% |
| Promotor’s Holdings | 58.89% |
| Share price | Rs. 183.40 |
| Dividend yield | 3.02% |
The trailing returns of ONGC are tabled below
| Period | Trailing Returns |
| 1 year | 36.87% |
| 3 years | 35.54% |
| 5 years | 1.69% |
| 10 years | -0.62% |
Power Grid Corporation of India Limited
The Power Grid Corporation of India Limited, a Maharatna CPSU, is India’s foremost electric power transmission company, with the Government of India holding a majority stake of 51.34% as of March 31, 2021. PGCIL plays a pivotal role in efficiently transferring substantial power from central generating agencies and regions with power surpluses to critical load centres across the nation. Operating under the purview of the Government of India’s Ministry of Power, it undertakes vital government-assigned projects and manages the planning, execution, operation, and maintenance of the Inter-State Transmission System (ISTS), along with providing telecom and consultancy services.
The key details of the company are tabled below. Figures as of September 11th, 2023
| Category | Details |
| Market Capitalization | Rs. 1,84,431 crores |
| PE Ratio | 11.73 |
| Return on Equity | 18.73% |
| Debt Equity Ratio | 1.37% |
| Promotor’s Holdings | 51.34% |
| Share price | Rs. 264.50 |
| Dividend yield | 5.70% |
The trailing returns of Power Grid Corporation of India are tabled below
| Period | Trailing Returns |
| 1 year | 18.66% |
| 3 years | 25.69% |
| 5 years | 12.82% |
| 10 years | 13.18% |
Adani Power Limited
Adani Power (APL), a division of the diverse Adani Group, holds the position of being India’s leading private thermal power producer. Together with its affiliated companies, it markets electricity generated from its projects through a mix of long-term Power Purchase Agreements, short-term PPAs, and merchant sales.
The key details of the company are tabled below. Figures as of September 11th, 2023
| Category | Details |
| Market Capitalization | Rs. 1,53,699 crores |
| PE Ratio | 9.69 |
| Return on Equity | 54.39% |
| Debt Equity Ratio | 1.13% |
| Promotor’s Holdings | 74.97% |
| Share price | Rs. 398.40 |
| Dividend yield |
The trailing returns of Adani Power Limited are tabled below
| Period | Trailing Returns |
| 1 year | 0.35% |
| 3 years | 119.54% |
| 5 years | 66.38% |
| 10 years | 27.92% |
Energy Sector Review – Sector overview, Investments and initiatives, future prospects
Where does Energy sector stand?
- Fossil fuels dominate at 57% of India’s installed generation capacity as of May 2023.
- Non-fossil fuels (including hydro-power) account for the remaining 43%.
- India is the world’s third-largest producer and consumer of electricity with 416.59 GW installed power capacity as of April 30, 2023.
- High potential in renewable energy, aiming to attract over US$ 20 billion in investments in 2023.
- Indian government allocates 35,000 crore for priority capital investments, emphasizing energy transition, net-zero goals, and energy security.
Government initiatives for the energy sector
- Sovereign green bonds introduced to fund sustainable projects.
- Energy storage systems, including large-scale grid batteries, recognized as vital infrastructure, stimulating their growth.
- Demonstrated commitment: India invested a significant $90 billion in clean energy between 2010 and the second half of 2019.
- Robust foreign direct investment (FDI): The power sector attracted $16.57 billion in FDI from April 2000 to December 2022, constituting 2.65% of India’s total FDI.
- Ambitious goals: India plans to achieve a 500 GW renewable energy capacity by 2030, aligning with its commitment to clean and sustainable energy solutions.
- Future outlook: With a forecasted power requirement of 817 GW by 2030, India aims to become a global hub for clean and green energy spanning the entire energy value chain.”
Conclusion
The energy sector has a dramatic impact on not just a country’s economy but on the global level too on account of geopolitical relations and changing world order dynamics. The increase in renewable energy collectively across the globe has seen many new innovations and partnerships across the globe that are shaping the economies and our future too.
