Top Green Energy Stocks to Consider: Adani Green, Borosil Renewables, Zodiac Energy, and More

Introduction

As the world grapples with the challenges of climate change, the demand for clean and sustainable sources of energy has never been more critical. India, as one of the fastest-growing economies globally, faces the task of meeting its energy demands while reducing its carbon footprint. In response, the country has made significant strides in the adoption of renewable energy. This article will shed light on the top green energy stocks in India, highlighting companies at the forefront of driving a greener future. Among the notable players in the industry are Adani Green Energy, Borosil Renewables, Zodiac Energy, SJVN, and KP Energy.

Adani Green Energy: Pioneering Renewable Energy

Adani Green Energy, led by billionaire Gautam Adani, stands as one of India’s largest renewable energy companies. With a robust renewable energy portfolio of 20,434 MW, Adani Green Energy continues to make remarkable contributions to the sector. In FY23 alone, the company added 2,676 MW of renewable capacity to its operational fleet. Furthermore, Adani Green Energy signed power purchase agreements for 450 MW wind projects and 650 MW solar projects with SECI during the same year, further bolstering its project pipeline.

Despite recent challenges, such as allegations against the Adani Group by the US short-seller Hindenburg Research, Adani Green Energy has demonstrated resilience. The company’s stock, currently trading around ₹985 apiece, commands a market capitalization of ₹1,55,971 crore. While the stock experienced a 49% decline year-to-date, it boasts a remarkable 259% growth over the past three years.

During the quarter that ended March 2023, Adani Green Energy posted a consolidated net profit of ₹507 crores, reflecting a remarkable growth rate of 319% compared to the corresponding quarter of the previous fiscal year. The company’s revenue from power supply also witnessed a significant increase, rising by 54% year-on-year to ₹5,825 crore.

SJVN: A Leading Hydroelectric Power Producer

SJVN, a government-owned entity, plays a pivotal role as a major hydroelectric power producer in India. The company boasts a total project portfolio of 45,409 MW, with 2,091.5 MW currently under operation. Additionally, SJVN possesses a significant operating hydropower capacity of 1,912 MW. Moreover, the company has made strides in solar and wind power, with an installed capacity of 97.6 MW and 81.9 MW, respectively.

SJVN’s share price has shown promising returns, yielding over 26% in 2023. Currently, the company holds a market capitalization of ₹14,033 crore. Its stock trades at a trailing twelve-months (TTM) P/E ratio of 9.64, outperforming the sector’s P/E ratio of 11.24. Furthermore, SJVN boasts a current dividend yield of 4.98%.

During Q4FY23, SJVN’s consolidated net profit surged over two-fold to ₹17.21 crore, primarily driven by higher income. The company’s total income during the same quarter rose to ₹582.78 crore, a substantial increase compared to ₹393.87 crore on a year-on-year basis.

Zodiac Energy: A Comprehensive Energy Solutions Provider

Zodiac Energy, a prominent energy solution provider, specializes in various aspects of power plant development, including design, supply, installation, testing, commissioning, and operation and maintenance (O&M). The company has established itself as a leading residential rooftop installer, having installed over 100,000 KW of rooftop solar power plants up to FY 2021-2022, earning a stellar reputation in India.

In Q4FY23, Zodiac Energy reported a net profit of ₹1.61 crores, demonstrating its continued growth and stability in the industry. The company’s total income during the same quarter increased to ₹62.25 crore from ₹56.81 crore on a year-on-year basis. Zodiac Energy’s stock price witnessed an impressive 11.85% rise in one year and a staggering 1,755% surge over the past three years. Presently, the company trades at a TTM P/E ratio of 40.48x, accompanied by a P/E ratio of 4.22. Zodiac Energy commands a market capitalization of nearly ₹159 crore.

KP Energy: A Comprehensive Wind Farm Developer

KP Energy plays a crucial role in the wind energy industry by providing Balance of Plant (BoP) solutions and engaging in the entire wind farm development value chain. The company has already operationalized over 200 MW capacity and possesses 8.4 MW of operational wind energy assets. With 450.8 MW projects under execution and a business pipeline of 900 MW, KP Energy is poised for substantial growth.

KP Energy’s net profit in Q4FY23 surged to ₹15.48 crore from ₹5.43 crore in the same period of the previous year. The company’s sales also witnessed a substantial increase, rising by 37.99% to ₹148.45 crore year-on-year.

The stock price of KP Energy has experienced remarkable growth, surging by 140% over the past year and an impressive 406% over the past three years. The company currently holds a market capitalization of ₹439.26 crore and trades at a P/E ratio of 11.37x, outperforming the sector’s P/E ratio of 16.57x.

Borosil Renewables: Driving Solar Innovation

Borosil Renewables stands as the sole solar glass manufacturer in India, boasting a manufacturing capacity of 450 TPD (equivalent to solar glass for 2.8 GW of solar modules). The company’s comprehensive product range extends beyond the solar glass and includes various lab ware, scientific ware, and consumer ware products.

Although Borosil Renewables witnessed a 74.8% decline in net profit in the quarter that ended March 2023, falling from ₹46.38 crores to ₹11.69 crores on a year-on-year basis, its total revenue showcased growth, increasing by 4.74% to ₹187.54 crore. Over the past three years, the company’s stock price skyrocketed by 1,218%, despite a 21% decline in the past year. Presently, Borosil Renewables trades at a P/E ratio of 77.08x and holds a market capitalization of ₹7,033 crore.