The world is moving towards green energy at a rapid pace. India is among the forefront of this race with a target to have net zero carbon emissions by 2070. The government has taken many initiatives and schemes as well as made significant allocation of resources in Budget 23 to promote this vision and aid the private as well as public sector in achieving this target. This has created a favorable atmosphere for renewable energy companies in the country with huge growth potential in the future. So which are the top names in the renewable energy sector in India? Read on to know about them and their key details in this blog.
Read More: What are Green Bonds?
Top renewable energy stocks in India based on Market Capitalisation
Some of the top renewable energy stocks in India and their details are tabled below.
Adani Green Energy Limited
Adani Green Energy Limited is part of the Adani Group and was incorporated in 2015. This company functions in the form of a holding company with multiple subsidiaries under its umbrella operating within the sphere of renewable power generation. The core focus of the company lies in engaging primarily with renewable power generation endeavors like building owning and operating power plants through renewable sources like solar power, wind power, and hybrid power.
The key details of the company are tabled below. Figures as of August 7th, 2023
| Category | Details |
| Market Capitalization | Rs. 1,60,391 crores |
| PE Ratio | 148.24 |
| Return on Equity | 13.80% |
| Debt Equity Ratio | 6.66% |
| Promotor’s Holdings | 50.71% |
| Share price | Rs. 964.95 |
| Dividend yield |
The trailing returns of Adani Green Energy Limited are tabled below
| Period | Trailing Returns |
| 1 year | -54.19% |
| 3 years | 41.36% |
| 5 years | 67.45% |
| 10 years |
Are you wondering about – What is the FDI permissible in renewable energy sector?
The permissible FDI in the renewable energy sector is up to 100% from the direct route with no prior government approval.
Tata Power
Tata Power Company Ltd operates at the forefront of the electricity industry, engaging predominantly in the intricate operations of electricity generation, transmission, and distribution. The company’s overarching objective is to achieve a momentous milestone by exclusively producing electricity from renewable sources. Beyond conventional means, Tata Power also forays into pioneering domains, such as the manufacture of solar roofs, signifying its commitment to innovative sustainable solutions. A strategic vision propels the company towards a substantial target, envisioning the establishment of an impressive 1 lakh electric vehicle (EV) charging stations by the year 2025, thereby contributing significantly to the widespread adoption of electric mobility.
The key details of the company are tabled below. Figures as of August 7th, 2023
| Category | Details |
| Market Capitalization | Rs. 75,298 crores |
| PE Ratio | 18.21 |
| Return on Equity | 14.87% |
| Debt Equity Ratio | 1.70% |
| Promotor’s Holdings | 46.86% |
| Share price | Rs. 234.15 |
| Dividend yield | 1.05% |
The trailing returns of Tata Power Limited are tabled below
| Period | Trailing Returns |
| 1 year | 0.88% |
| 3 years | 67.98% |
| 5 years | 26.65% |
| 10 years | 13.01% |
Suzlon Energy Limited
Suzlon Energy Ltd, founded in 1995, specializes in the manufacturing of wind turbine generators and associated components. The company also provides services like the operation and maintenance of wind turbines along with project execution and site infrastructure development services.
The key details of the company are tabled below. Figures as of August 7th, 2023
| Category | Details |
| Market Capitalization | Rs. 22,938 crores |
| PE Ratio | 44.40 |
| Return on Equity | |
| Debt Equity Ratio | 1.38% |
| Promotor’s Holdings | 14.50% |
| Share price | Rs. 18.50 |
| Dividend yield |
The trailing returns of Suzlon Energy Limited are tabled below
| Period | Trailing Returns |
| 1 year | 169.71% |
| 3 years | 65.28% |
| 5 years | 22.45% |
| 10 years | 11.61% |
Are you wondering about – What is the average increase in the installed renewable energy capacity in India since 2014?
Since 2014, there has been a notable surge of approximately 128% in the installed capacity of renewable energy, which encompasses substantial hydropower as well.
Inox Wind Energy Limited
Inox Wind Energy Ltd is actively immersed in the dynamic realm of wind energy, encompassing both its generation and profitable sale. Additionally, the company extends its expertise to offer comprehensive services encompassing the erection, procurement, and commissioning (EPC) of wind farms, thereby bolstering the entire lifecycle of wind energy projects. Furthermore, Inox Wind Energy Ltd strategically diversifies its operations, holding vested interests in the realm of renewables beyond wind energy, thereby showcasing a holistic commitment to sustainable energy initiatives.
The key details of the company are tabled below. Figures as of August 7th, 2023
| Category | Details |
| Market Capitalization | Rs. 3,280 crores |
| PE Ratio | |
| Return on Equity | -51.93% |
| Debt Equity Ratio | 0.83% |
| Promotor’s Holdings | 67.26% |
| Share price | Rs. 2,739.95 |
| Dividend yield |
The trailing returns of Inox Wind Energy Limited are tabled below
| Period | Trailing Returns |
| 1 year | 413.10% |
| 3 years | |
| 5 years | |
| 10 years |
KPI Green Energy Limited
Founded in 2008, KPI Green Energy Ltd is actively engaged in the domain of solar power generation and sales based in Surat, India. The company develops, builds, owns, operates, and maintains solar power plants. This company was renamed KPI Green Energy Limited in April 2022. As of 30th June 2023, KPI Green Energy Ltd. boasts a total of 3.61 Crore shares outstanding, highlighting its presence within the market and its equity structure.
The key details of the company are tabled below. Figures as of August 7th, 2023
| Category | Details |
| Market Capitalization | Rs. 3,028 crores |
| PE Ratio | 27.65 |
| Return on Equity | 48.64% |
| Debt Equity Ratio | 1.59% |
| Promotor’s Holdings | 54.81% |
| Share price | Rs. 833.65 |
| Dividend yield | 0.12% |
The trailing returns of KPI Green Energy Limited are tabled below
| Period | Trailing Returns |
| 1 year | 149.24% |
| 3 years | 233% |
| 5 years | |
| 10 years |
Are you wondering about – What are the main components or segments of the renewable energy sector?
The main segments of the renewable energy sector are Hydroelectric Power, Solar Energy, Wind Power, and Bioenergy.
Renewable Energy Sector – Sector Overview, Investments and Future Prospects
Sector overview – Renewable energy
- India’s renewable energy sector is a prominent sunrise industry, showing rapid progress.
- India ranks 3rd in global energy consumption and 4th in installed renewable energy capacity.
- At COP26, India heightened its goal to achieve 500 GW of non-fossil fuel energy by 2030.
- This commitment is part of the Panchamrit initiative, reflecting global-scale renewable energy expansion.
- The renewable energy market in India reached $20 billion in 2022.
- IMARC Group forecasts the market to reach $35.6 billion by 2028, with a CAGR of 10.19% (2023-2028).
- As of July 2023, India’s cumulative renewable energy capacity is 179.322 GW.
- The cumulative capacity includes significant hydropower contributions.
Government Initiatives and Renewable Energy Developments in India: Key Points
- Government initiatives focus on green growth, recognized as SAPTARISHI in the Union Budget of 23-24.
- The government is committed to achieving renewable energy sector goals.
- Budget 2023-24 allocates $1.02 billion (Rs. 8,300 crores) for ISTS infrastructure supporting 13 GW renewable energy generation in Ladakh.
- Prime Minister Narendra Modi inaugurated the 600 MW Kameng Hydro Power Station in Arunachal Pradesh on November 19.
- The project costs around Rs. 8,200 crore ($1 billion) and spans over 80 kilometers in the West Kameng District.
- The Kameng Hydro Power Station contributes significantly to regional energy enhancement.
- The renewable energy sector allows 100% FDI through the automatic route.
- Between April 2000 and March 2023, the sector attracted 2.22% of total FDIs.
- the automatic route and has received 2.22% of the total FDIs between April 2000 – March 2023.
Future Prospects
By the year 2040, an estimated 49% of the overall electricity generation is projected to originate from renewable energy sources, facilitated by the adoption of more efficient battery technologies for energy storage. This advancement is anticipated to result in a substantial 66% reduction in the cost of solar energy when compared to current expenses. The transition from coal to renewable energy is poised to yield annual savings of Rs. 54,000 crore (equivalent to US$ 8.43 billion) for India. According to assessments made by the Central Electricity Authority (CEA), the proportion of energy production from renewables is forecasted to surge from 18% to 44% by the period of 2029-2030.
Are you wondering about – What is the expected CAGR of the renewable energy market during 2023-2028?
The expected CAGR of the renewable energy market during 2023-2028 is 10.19% approximately as per the research conducted by the IMARC Group.
Conclusion
The renewable energy hubs in India are currently in Gujarat, Rajasthan, Andhra Pradesh, Karnataka, Telangana, and Tamil Nadu. The targets set by the government were once thought to be unachievable, however, constant contributions and efforts from the public and private sector have made them quite achievable. The companies in this sector are set to benefit from the favourable atmosphere around the renewable energy sector and be part of its growth story.
