Top Green Energy Stocks In India

What are Green energy stocks?

Companies engaged in creating alternative technologies using renewable resources with low to no emissions are called "green energy stocks." The three most common types of green energy are heat, wind, and sunlight. It can also include specific types of biomass and low-impact hydropower sources. Green energy firms are those that strive to reduce the use of fossil fuels while using the aforementioned resources to produce zero carbon emissions.

Let's go into more detail to identify the best green energy stocks in India that would make excellent long-term investments for investors.

1.. NTPC (National Thermal Power Corporation)

The primary activities of NTPC and its subsidiaries are the production and delivery of electricity to state power utilities. The company also has divisions that deal with consulting, energy trading, oil and gas exploration, and coal mining.

Through its subsidiary, NTPC Green Energy Ltd., NTPC is committed to making its energy portfolio more environmentally friendly. With the use of renewable energy sources, NTPC aspires to have a minimum 32,000 MV capacity through its green arm.

Strengths

• Due to its extensive energy industry experience, NTPC enjoys high credibility and popularity.

• The ROCE and ROE of the company have gotten better during the last two years.

• A good sign is that FIIs have grown their ownership of the company.

• In India, NTPC is in charge of 22% of the country's electricity production.

Weakness

• The company is vulnerable to being impacted by a variety of government initiatives that can obstruct operations and growth.

Opportunities

• In the energy sector, there has been a fall in supply, which has led to a rise in demand, which NTPC can capitalize on to accelerate its growth.

• The emphasis on green energy creates new opportunities for the organization to develop and prosper.

Threats

• The market for green energy is expanding and has enormous potential, which puts NTPC in fierce competition with new private businesses that offer cutting-edge services and marketing strategies.

• A spike in production costs as a result of rising raw material costs. Tata Power has expanded its operations to include the transmission and distribution of power as well as other services like EPC and O&M. The company also engages in the generation of electricity from thermal and renewable sources.

2.. Tata Power

Electricity generation, transmission, and distribution are Tata Power's core business activities. The company's primary goal is to produce and supply electricity using renewable resources. It also makes solar roofing. It is among the major participants in the energy and power industry.

Strengths

• Tata Power has expanded its operations to include the transmission and distribution of power as well as other services like EPC and O&M. The company also engages in the generation of electricity from thermal and renewable sources.

• It has credibility because the Tata brand is connected to it.

• Due to its substantial capital reserves and low debt, it has tremendous expansion potential.

Weakness

• Because of the fierce rivalry in the expanding energy industry, it has a small market share.

• The company's return on equity for the past three years has been 5.53%, which is really poor.

Opportunities

• Demand for unconventional power sources is continuously rising.

• Given Tata Motor's first mover advantage in the EV sector, it wants to install 1 lakh EV charging stations by 2025, which opens up enormous revenue possibilities and offers them an advantage over their rivals.

Threats

• Changes in international regulations governing coal and oil could have an effect on the possibilities for business.

• Government policy and regulatory changes are another risk to Tata Power's future.

Conclusion

Given the shifting conditions, the energy sector—and not just India's potential in the green energy sector—is crucial to the global economy. Additionally, as the world moves towards greener resources, customer preferences and behaviours are changing, making the expansion of this industry even more probable.

My name is Anubhav and i write articles on multiple topics. Thanks for showing support.