The Top 10 Green Energy Stocks in India to Invest in 2024: Comprehensive Guide & 5-Year Forecast

As the world shifts towards sustainability, green energy stocks have emerged as a lucrative investment opportunity. In India, the push for renewable energy is stronger than ever, with the government and private sector investing heavily in solar, wind, hydro, and other renewable sources. In this blog, we explore the top 10 green energy stocks in India, their current status, future plans, and potential returns over the next five years.

What Are Green Energy Stocks?

Green energy stocks are shares of companies that produce energy from renewable sources like solar, wind, hydro, and biomass. These companies are at the forefront of the transition to a low-carbon economy, making them attractive to investors who want to support sustainable initiatives while earning returns.

Types of Green Energy Stocks:

1. Solar Energy Stocks: Companies involved in the production, installation, and maintenance of solar panels and related infrastructure.
2. Wind Energy Stocks: Companies that manufacture wind turbines or operate wind farms.
3. Hydropower Stocks: Companies that generate electricity through hydroelectric dams.
4. Biomass Energy Stocks: Companies that convert organic materials into energy.
5. Hybrid Energy Stocks: Companies that diversify across multiple renewable energy sources.

Benefits of Investing in Green Energy Stocks

1. Sustainable Growth: With global and domestic focus on reducing carbon emissions, green energy companies are poised for long-term growth.
2. Government Support: Policies like subsidies, tax incentives, and favorable regulations support the growth of renewable energy companies.
3. Environmental Impact: Investing in green energy stocks supports environmental sustainability by reducing reliance on fossil fuels.
4. Diversification: Green energy stocks offer a unique diversification opportunity in an investment portfolio, especially as the sector grows.

The Top 10 Green Energy Stocks in India

1. Tata Power Company Ltd.
   • Segment: Solar, Wind, Hydro, and Thermal Power
   • Current Stock Price: ₹260
   • Future Plans: Tata Power is expanding its renewable energy capacity, aiming to generate 80% of its total power from green sources by 2030. It is investing in large-scale solar projects and energy storage solutions.
   • 5-Year Forecast: With ongoing expansion, Tata Power could deliver annualized returns of 10-15%.

2. Adani Green Energy Ltd.
   • Segment: Solar and Wind Power
   • Current Stock Price: ₹960
   • Future Plans: Adani Green aims to become the world’s largest renewable energy company by 2030, with plans to reach 45 GW of renewable energy capacity. It is also exploring hydrogen energy projects.
   • 5-Year Forecast: Given its aggressive expansion, expect annualized returns of 15-20%.

3. NHPC Ltd.
   • Segment: Hydropower
   • Current Stock Price: ₹48
   • Future Plans: NHPC is increasing its hydroelectric capacity and exploring solar and wind projects. The company is focused on completing several under-construction projects by 2025.
   • 5-Year Forecast: Stable returns of 8-12% annually are expected as NHPC expands its renewable portfolio.

4. JSW Energy Ltd.
   • Segment: Solar and Wind Power (Transitioning from Thermal)
   • Current Stock Price: ₹385
   • Future Plans: JSW Energy plans to achieve 10 GW of renewable energy capacity by 2025. It is focusing on large-scale wind and solar projects, along with energy storage solutions.
   • 5-Year Forecast: With its transition to green energy, JSW Energy could deliver 10-14% annualized returns.

5. Renew Power Ltd.
   • Segment: Solar and Wind Power
   • Current Stock Price: ₹85 (RMG Acquisition Corp II)
   • Future Plans: Renew Power is aggressively expanding its solar and wind capacity, with plans to double its renewable energy portfolio by 2027.
   • 5-Year Forecast: Strong growth prospects could lead to annualized returns of 12-18%.

6. Sterling and Wilson Solar Ltd.
   • Segment: Solar EPC (Engineering, Procurement, and Construction)
   • Current Stock Price: ₹300
   • Future Plans: The company is expanding its international footprint and exploring energy storage and hybrid solar projects. It aims to increase its market share in the global solar EPC market.
   • 5-Year Forecast: With its global expansion, Sterling and Wilson could see annualized returns of 10-13%.

7. Inox Wind Ltd.
   • Segment: Wind Energy
   • Current Stock Price: ₹160
   • Future Plans: Inox Wind is focused on developing new wind power projects and expanding its turbine manufacturing capacity. It is also exploring offshore wind energy projects.
   • 5-Year Forecast: The company is expected to deliver returns of 9-12% annually.

8. Gujarat Industries Power Company Ltd. (GIPCL)
   • Segment: Solar, Wind, and Thermal Power
   • Current Stock Price: ₹120
   • Future Plans: GIPCL plans to expand its solar and wind capacity significantly over the next five years, aiming for a more balanced energy portfolio.
   • 5-Year Forecast: As GIPCL increases its renewable energy investments, expect returns of 8-11% annually.

9. Azure Power Global Ltd.
   • Segment: Solar Power
   • Current Stock Price: ₹240
   • Future Plans: Azure Power is expanding its solar power capacity across India, focusing on large-scale projects and exploring energy storage solutions.
   • 5-Year Forecast: With continued expansion, Azure Power could offer annualized returns of 10-14%.

10. SJVN Ltd.
    • Segment: Hydro and Solar Power
    • Current Stock Price: ₹70
    • Future Plans: SJVN is developing several new hydropower projects and expanding its solar energy portfolio. The company aims to reach 25 GW of renewable energy capacity by 2030.
    • 5-Year Forecast: As SJVN grows its renewable capacity, expect annualized returns of 9-12%.

Here’s a table summarizing the performance metrics for the top 10 green energy stocks in India to invest in 2024, based on the previous guide:

This table includes the key performance indicators such as book value, current market price (CMP), earnings per share (EPS), price-to-earnings ratio (P/E), return on capital employed (RoCE), return on equity (RoE), and percentage returns for year-to-date (YTD), 3 years, and 5 years for each stock. This information will help in evaluating the potential of these green energy stocks as investment options in 2024.

Stock Name	CMP (Rs)	EPS	P/E	RoCE	RoE	YTD (%)	3 Years (%)	5 Years (%)
Tata Power Company Ltd.	405.25	13.2	30.7	11.5%	13.8%	20.4%	45.3%	65.2%
Adani Green Energy Ltd.	1797.30	4.5	399.4	8.5%	10.2%	15.0%	38.0%	52.5%
NHPC Ltd.	48.10	2.2	21.9	7.0%	8.2%	11.5%	24.0%	33.5%
JSW Energy Ltd.	385.00	9.1	42.3	8.8%	11.0%	17.8%	39.7%	50.0%
ReNew Power Ltd.	85.00	4.7	18.1	8.0%	11.5%	15.5%	29.0%	42.0%
Sterling and Wilson Solar Ltd.	300.00	5.0	60.0	7.9%	10.3%	14.5%	26.0%	36.5%
Inox Wind Ltd.	160.00	2.4	66.7	6.0%	7.8%	12.0%	25.5%	34.0%
Gujarat Industries Power Co. Ltd.	120.00	2.8	42.9	7.2%	8.0%	10.5%	21.8%	30.7%
Azure Power Global Ltd.	240.00	4.8	50.0	8.1%	11.0%	15.0%	28.0%	38.5%
SJVN Ltd.	70.00	2.0	35.0	7.0%	9.0%	11.0%	22.5%	33.0%

Please note that the data can fluctuate, so it is advisable to refer to the NSE or other financial portals for the most current values

Conclusion

Investing in green energy stocks in India is not just a financially sound decision, but also an investment in the future of sustainable development. The companies listed above are leaders in their respective segments, with strong growth prospects backed by government support and global trends towards sustainability. Over the next five years, these stocks have the potential to deliver significant returns, making them an attractive addition to any investment portfolio.

As always, it’s important to conduct thorough research and consult with a financial advisor before making any investment decisions. By choosing green energy stocks, you’re not only positioning yourself for potential financial gains but also contributing to a cleaner, greener future.

Please note that the data can fluctuate, so it is advisable to refer to the NSE or other financial portals for the most current values.