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Top 3 Renewable Energy Stocks in India 2024
Table of Contents
Introduction
Renewable energy stocks have been gaining popularity among investors in recent times. With the increasing demand for clean and sustainable sources of energy, the renewable energy sector has witnessed significant growth. In this blog, we will discuss three renewable energy stocks that have the potential to contribute to India's target of achieving 500 gigawatts of renewable energy capacity by 2030. Additionally, we will also highlight multi-bagger news that is worth considering for investment purposes.
1.KPI Green Energy - A Unique Business Model
KPI Green Energy is a company that operates in the green energy sector and generates revenue in two ways. Firstly, it acts as an independent power producer under the IPP model, setting up its own power plants and selling the generated power to reputed business houses through power purchase agreements. Secondly, it acts as a captive power producer under the CPP model, providing power plant setup, operation, and maintenance services to its clients. By offering cost-effective power solutions, KPI Green Energy has positioned itself as a reliable and efficient power producer.The company's revenue breakup between IPP and CPP stands at 17% and 83% respectively.
Currently, KPI Green Energy has an installed capacity of 380 megawatts, with a target to reach 1000 megawatts by the financial year 2025. This planned increase in capacity showcases the company's growth potential in the renewable energy market. Moreover, KPI Green Energy's order book stands at Rs. 512 crore as of February 2023, compared to Rs. 350 crore in May 2022, indicating a positive trend in the company's fundamental performance. The stock is currently priced at Rs.1738 per share, and the promoter holding stands at 53%, offering a favorable investment opportunity.
2.JSW Energy - Diversified Power Generation
JSW Energy is a group company that generates power from both thermal and renewable sources. With a total installed capacity of 3.8 gigawatts in thermal and 5.9 gigawatts in renewable energy, JSW Energy aims to contribute to the government's vision of achieving 500 gigawatts of renewable energy capacity by 2030. The company has a well-defined growth strategy and focuses on solar, wind, and hydro energy sources. JSW Energy's revenue projection for 2023 showcases the growing demand for renewable energy, making it an attractive stock for investors. The stock is currently priced at Rs.623 per share, and the promoter and FII holdings are 69.3% and 13.34% respectively.
3.Tata Power - Leading the Way in the Energy Revolution
Tata Power is a leading player in the power generation sector, known for its commitment to clean and sustainable energy. The company has been actively involved in various initiatives, such as the PM Surya Ghar Muft Bijli Yojana and the government's vision of achieving 500 gigawatts of renewable energy capacity by 2030. Tata Power's focus on developing an electric vehicle ecosystem and its expertise in solar roof-top installations have positioned it as a market leader in the renewable energy industry. With an installed capacity of 14.4 gigawatts by Q3 2024, Tata Power is well-equipped to meet the increasing demand for renewable energy. The stock is currently priced at Rs.434 per share, and the promoter and FII holdings are 66.4% and 24.9% respectively.
Conclusion
Investing in renewable energy stocks presents a promising opportunity for investors looking to contribute to a greener and more sustainable future. Stocks like KPR Energy, JSW Energy, and Tata Power offer the potential for significant growth and align with the government's ambitious renewable energy targets. It is essential to consider both the fundamental performance and the price action of these stocks to make informed investment decisions. As always, it is recommended to do thorough research and consult with a financial advisor before making any investment.
Disclaimer: This Stock Analysis is only for informational purposes and should not be considered as investment advice. Always do your research and consult with a financial advisor.
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