Welcome to our Best Share to Buy Now Series:- Today, we’re focusing on the Indian solar sector, uncovering the best solar stocks to buy in 2024. As the world shifts towards renewable energy solutions, India stands at the forefront of this revolution, offering immense opportunities for investors seeking multi-bagger returns.
If you’re planning to invest or have an interest in the best solar stocks in India 2024, then this article is for you. Make sure to read till the end because we will explore the top solar stocks to buy now and seize the opportunities that lie ahead.
Best Solar Stocks in India 2024
Investing in solar stocks in India offers numerous benefits due to the rising demand for clean energy, strong government support and incentives, falling costs, technological advancements, and stable returns. With initiatives like the Jawaharlal Nehru National Solar Mission (JNNSM) and subsidies in place, the solar sector is ripe for investment.
Additionally, solar projects typically come with long-term power purchase agreements (PPAs), providing a predictable revenue stream. Moreover, the industry contributes to job creation and economic growth. Overall, investing in solar stocks in India presents an attractive opportunity to achieve financial goals while supporting environmental sustainability and economic development.
So, let’s explore the best solar stocks to consider in India for 2024. Let’s take a closer look at the top 15 solar stocks to keep on your watchlist.
Tata Power Company
Tata Power Company is a leading player in the energy sector With a market capitalization of ₹1,25,289 crores. The company has demonstrated consistent growth over the years, with a commendable profit growth of 44.9% CAGR over the last 5 years. Moreover, Tata Power has maintained a healthy dividend payout of 31.7%, which is appealing to income-seeking investors.
In terms of financial performance, Tata Power’s numbers speak volumes. Its Return on Capital Employed (ROCE) stands at 11.7%, while its Return on Equity (ROE) is at 12.6%, indicating efficient utilization of resources and shareholder value creation.
Analyzing the product segments, Tata Power has shown robust sales figures, with a steady increase over time. The company’s operating profit margins have also been consistently maintained, reflecting sound operational efficiency.
Looking at the balance sheet, Tata Power exhibits a strong financial position with substantial reserves and manageable borrowings. This stability provides a cushion against market fluctuations and enhances investor confidence.
One of the key highlights of Tata Power’s performance is its compounded profit growth, which stands at 45% over the past 5 years, showcasing the company’s ability to generate sustainable earnings.
Furthermore, Tata Power’s stock price has demonstrated impressive growth, with a Compound Annual Growth Rate (CAGR) of 43% over the last 5 years, making it an attractive option for capital appreciation.
In terms of shareholding pattern, the company enjoys a diverse investor base, including promoters, FIIs, DIIs, government, and the public, indicating widespread interest and confidence in its prospects. That’s Why These Are the Best Solar Stocks in India 2024 to Keep on Your Watchlist.
Adani Green Energy
Adani Green Energy is a prominent player in India’s renewable energy sector With a market capitalization of ₹2,97,909 crore. One of the primary reasons investors are eyeing Adani Green Energy stocks is its remarkable performance in recent years. The company has delivered a remarkable profit growth of 61.0% CAGR over the last five years, indicating robust financial health and promising prospects for investors.
Moreover, Adani Green Energy has shown improvement in various operational metrics. For instance, debtor days have reduced from 136 to 103 days, showcasing efficient management of receivables. Additionally, the company’s working capital requirements have decreased from 69.3 days to 27.4 days, indicating better liquidity management.
In terms of quarterly results, Adani Green Energy has been consistently performing well. For instance, in the December 2023 quarter, the company reported sales of ₹2,311 crores and a net profit of ₹256 crores. These figures underscore the company’s ability to generate revenue and maintain profitability.
Furthermore, Adani Green Energy’s balance sheet reflects a strong financial position. With total assets standing at ₹71,479 crores, the company possesses significant resources to support its growth initiatives in the renewable energy sector.
Another factor driving investor interest in Adani Green Energy stocks is its shareholder pattern. Promoters hold a significant stake of around 56.37%, indicating their confidence in the company’s growth trajectory. Additionally, institutional investors such as Foreign Institutional Investors (FIIs) and Domestic Institutional Investors (DIIs) have also shown interest, holding approximately 18.03% and 1.50% of the company’s shares, respectively. That’s Why These Are the Best Solar Stocks in India 2024 to Keep on Your Watchlist.
Reliance New Energy Solar
Reliance Industries Limited, India’s largest conglomerate, has been making waves in the energy sector with its subsidiary, Reliance New Energy Solar With a market capitalization of over ₹19.76 lakh crores. Reliance New Energy Solar is a subsidiary of Reliance Industries Limited, focused on renewable energy, particularly solar power.
One of the key factors that make Reliance Industries stocks an attractive investment option is the company’s strong financial performance. Despite fluctuations in the market, Reliance Industries has demonstrated resilience, with consistent growth in sales and profits over the years. For instance, the company’s sales have seen compounded growth rates of 8% over the past decade, 18% over the past five years, and 14% over the past three years.
Moreover, Reliance Industries has a solid track record of profitability, as evidenced by its healthy profit margins and earnings per share (EPS). The company has consistently generated robust returns for its shareholders, with a stock price compound annual growth rate (CAGR) of 23% over the past decade and 21% over the past five years.
In addition to its financial performance, Reliance Industries boasts a strong balance sheet, with significant reserves and investments in key assets. The company’s focus on innovation and technology, coupled with its strategic investments in sectors such as telecommunications, retail, and now renewable energy, positions it as a leader in India’s business landscape. That’s Why These Are the Best Solar Stocks in India 2024 to Keep on Your Watchlist.
Websol Energy System
Websol Energy System Ltd. is an Indian company specializing in the manufacture of solar photovoltaic (PV) cells and modules. The company’s primary focus is on producing high-quality solar energy solutions for both domestic and international markets With a market capitalization of ₹2,023 crores.
Despite fluctuations in its financial performance, Websol Energy Systems has been resilient in its operations. The company has shown consistent growth in its compounded sales over the years, albeit facing challenges in recent times. The compounded sales growth for 10 years stands at -17%, indicating a slight decline, but the company has managed to maintain positive figures in its net profit, showcasing its ability to navigate through market uncertainties.
One of the key factors driving investor interest is the company’s focus on renewable energy solutions, particularly solar energy. In a world increasingly conscious of climate change, investments in clean energy companies like Websol Energy Systems are gaining traction. With initiatives like the National Solar Mission in India, the demand for solar power solutions is expected to surge, potentially benefiting companies like Websol.
However, it’s essential to note the financial metrics before making investment decisions. Websol Energy Systems has seen fluctuations in its profitability over the years. While the company has shown a turnaround in its trailing twelve months (TTM) profit growth, which stands at an impressive 306%, it has faced challenges in maintaining positive returns on equity (ROE). The last reported ROE was -11%, indicating a need for improvement in utilizing shareholders’ funds effectively.
Moreover, the balance sheet of Websol Energy Systems reveals a stable financial structure. Despite variations in equity capital and reserves over the years, the company has managed its borrowings and liabilities effectively, which is crucial for its long-term sustainability.
HBL Power Systems
HBL Power Systems Limited is an Indian company that specializes in the design, development, and manufacturing of specialized batteries, electronics, and power systems With a market capitalization of ₹16,457 crores. HBL Power Systems offers a wide range of products including batteries for various applications such as defence, railway, telecom, and industrial use.
One of the key reasons investors are eyeing HBL Power Systems is its consistent performance over the years. The company has demonstrated a robust profit growth of 21.4% CAGR over the last five years, reflecting its operational efficiency and strategic management. Moreover, HBL Power Systems has maintained a healthy dividend payout of 31.7%, providing an attractive proposition for income-oriented investors.
Looking at the recent quarterly results, HBL Power Systems has shown resilience in its performance despite market fluctuations. The operating profit margin (OPM) has consistently improved, reaching 19% in the last reported quarter. This indicates the company’s ability to efficiently manage its operations and control costs, leading to higher profitability.
Analyzing the company’s financials further, it’s evident that HBL Power Systems has been on a growth trajectory. The compounded sales growth over the last three years stands at an impressive 8%, with the trailing twelve months (TTM) showing a remarkable 51% growth. Similarly, the compounded profit growth has been robust, with a 62% growth over the last three years and a staggering 146% in the TTM period.
Investors are also attracted to HBL Power Systems due to its strong balance sheet and shareholder-friendly policies. The company’s return on capital employed (ROCE) and return on equity (ROE) stands at 13.7% and 10.7% respectively, indicating efficient utilization of resources and shareholder value creation. That’s Why These Are the Best Solar Stocks in India 2024 to Keep on Your Watchlist.
Waa Solar Ltd is in the business of solar power generation and its transmission With a market capitalization of ₹194 crore. The company boasts a stock price-to-earnings (P/E) ratio of 18.1, indicating its potential for growth and profitability. With a book value of ₹138 and trading at 1.06 times its book value, Waa Solar presents an attractive valuation proposition for investors seeking value opportunities in the market.
Furthermore, Waa Solar has demonstrated robust financial performance over the years, with a commendable profit growth of 21.5% compounded annual growth rate (CAGR) over the last five years. This growth trajectory is mirrored in its half-yearly results, with consistent improvements in sales and operating profits, showcasing the company’s resilience and adaptability in the dynamic market landscape.
Additionally, Waa Solar’s prudent financial management is evident from its reduced debt levels, indicating a healthier balance sheet and enhanced financial stability. This prudent approach is further underscored by the company’s dividend yield of 0.00%, signaling its focus on reinvesting profits for future growth opportunities.
In terms of operational efficiency, Waa Solar has maintained a respectable return on capital employed (ROCE) of 6.73% and a return on equity (ROE) of 5.59%, reflecting its ability to generate returns for shareholders while effectively utilizing capital resources.
Moreover, Waa Solar’s product segments have exhibited steady growth, with compounded sales growth of 1% over the past three years, despite a challenging market environment. This resilience is mirrored in its compounded profit growth, with a remarkable 75% CAGR over the same period, highlighting the company’s ability to capitalize on market opportunities and drive sustainable profitability. That’s Why These Are the Best Solar Stocks in India 2024 to Keep on Your Watchlist.
Swelect Energy Systems
Swelect Energy Systems Ltd., established in 1994, is a company deeply involved in the renewable energy sector. Its core activities encompass the manufacturing and trading of solar power projects and off-grid solar photovoltaic modules, based on crystalline silicon technology (c-Si).
Swelect Energy Systems, with a face value of ₹10.0, has been consistently maintaining a healthy dividend payout of 21.4%, making it an attractive option for those seeking dividends. Moreover, its debtor days have shown improvement from 84.0 to 66.8 days, indicating a positive trend in managing receivables.
Looking at its financial performance, the company has showcased growth in its product segments over the past quarters. While there have been fluctuations in sales and expenses, the operating profit margin (OPM) has generally been in the double digits, reaching as high as 39.25% in recent quarters. Additionally, the company has been able to generate other income consistently, albeit with some fluctuations.
In terms of profitability, Swelect Energy Systems has demonstrated resilience despite challenges. Its profit before tax has shown improvement, and the tax percentage has remained relatively low in recent quarters. This has translated into a positive net profit, contributing to earnings per share (EPS) growth, which is a crucial factor for investors.
Analyzing its balance sheet, Swelect Energy Systems has maintained a stable equity capital while steadily increasing its reserves over the years. Borrowings have also increased, possibly indicating strategic investments for future growth. Overall, the company’s assets have seen growth, with a significant portion allocated to fixed assets and investments.
Borosil Renewables indeed focuses on manufacturing extra clear patterned glass and low-iron solar glass for various applications, including photovoltaic (PV) panels, flat plate collectors, and greenhouses With a market capitalization of ₹7,049 crore.
Borosil Renewables has shown a consistent growth trajectory over the years. Its sales figures have been steadily increasing, indicating a healthy demand for its products. Moreover, the company has managed its expenses efficiently, maintaining a commendable operating profit margin.
In terms of profitability, Borosil Renewables has exhibited resilience, even during challenging periods. Despite fluctuations in profits, the company has managed to bounce back, reflecting its robust business model and strategic management.
One of the factors contributing to Borosil Renewables’ appeal to investors is its strong balance sheet. With a prudent mix of equity and reserves, coupled with manageable borrowings, the company exhibits financial stability, instilling confidence among shareholders.
Furthermore, Borosil Renewables’ stock performance has been noteworthy. With a Compound Annual Growth Rate (CAGR) of 21% over the past three years and 12% over the last year, it has outperformed many peers in the market. Additionally, its Return on Equity (ROE) remains competitive, further enhancing its attractiveness to investors.
The article “Best Solar Stocks in India 2024” is intended for informational purposes only. The information provided in this article is based on the research analyst’s YouTube solar sector stocks list and should not be considered as financial advice.
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