The Top 5 energy stocks in India has always been in the eyes of investors as these stocks provide the high return. As the world’s concern for the environment continues to heighten, the Indian government’s strong support for renewable energy and significant investments in the sector make it an appealing opportunity for investors. With key players making rapid strides to help India reach its goal of 500 GW of capacity by 2030, the sector’s potential is undeniable.
This is further highlighted by the recent Union Budget for 2023-2024, which demonstrates the government’s commitment with a whopping 48% increase in funds allocation for the Ministry of New and Renewable Energy, now at Rs. 10,222 crore.
Let’s explore India’s energy sector, discussing its challenges, potential, and presenting a list of the Top 5 Energy Stocks in India for investors looking to contribute in these stocks.
Table of Contents
Overview of Top 5 Energy Stocks in India
1. Reliance Industries Ltd
Reliance Industries Limited, a multinational corporation, boasts a wide range of operations in hydrocarbon, oil, chemicals, textiles, retail, digital services, renewables, and financial services. From producing and selling petroleum products and petrochemicals to manufacturing textiles and apparel, to drilling for crude oil and natural gas, the company has successfully established a diverse portfolio. Moreover, the company operates a variety of retail stores and offers digital services, all under the popular Jio brand. Since its founding in 1973, Reliance Industries has been headquartered in the bustling city of Mumbai, India.
- Current Market Price – ₹29,451.55
- Market Capitalization – ₹1,993,272 crore
- Over the last three years, annual net profit has increased.
- Over the past three years, EBITDA has been rising steadily
- The book value has been going upward.
2. Adani Green Energy Ltd
Based in Ahmedabad, India, Adani Green Energy Ltd is a leading provider of renewable energy to governmental organizations. With its founding year dating back to 2015, the company runs impressive solar and wind power facilities boasting a combined capacity of 4,763 MW and 647 MW, respectively.
- Current Market Price – ₹1,933.30
- Market Capitalization – ₹309,457 crore
- EBITDA has been rising steadily for the past three years
- Annual Net Profit has been moving upward
- The company has achieved a good return on equity of 19.58%
- It has earned a good net margin of 15.67%.
3. Tata Power Company Ltd
Tata Power, a dynamic company hailing from Mumbai, specializes in the production, transmission, and distribution of electricity. Drawing upon its various divisions including Generation, Renewables, and Others, Tata Power harnesses energy from multiple sources such as hydro, thermal, wind, and solar, boasting an impressive total capacity of 14,110 MW. In addition, the company offers services in project management and infrastructure development, and even dabbles in property development. To top it off, Tata Power is innovating for the future with its production of solar products, operation of EV charging stations, and involvement in power trade. With a rich history dating back to 1915, Tata Power continues to be a major contender in the energy industry, showcasing its versatility and growth.
- Current Market Price – ₹378.90
- Market Capitalization – ₹121,583 crore
- For the last five quarters, the company’s profit before taxes has increased
- Additionally, it has earned a good return on equity, coming in at 12.47%.
4. NTPC Ltd
NTPC Limited, headquartered in New Delhi, India, is a major player in the energy industry. With a diverse portfolio that includes coal, gas, liquid fuel, hydro, solar, nuclear, wind, and thermal sources, the company has an impressive installed capacity of 72,304 MW as of May 3, 2023. NTPC operates in two segments and is primarily responsible for generating and selling bulk power to state utilities. In addition to its core activities, the company also offers consultancy services, engages in energy trading, conducts oil and gas exploration, and oversees coal mining operations. Established in 1975, NTPC has played a significant role in powering India’s growing economy.
- Current Market Price – ₹343.95
- Market Capitalization – ₹328,572 crore
- The company’s net profit has increased over the last three years
- EBITDA has increased steadily over the last three years
- EPS has grown steadily over the last four quarters
- The company has achieved a good return on equity of 13.13% and a good net margin of 11.14%.
5. Power Grid Corporation of India Ltd
Founded in 1989, Power Grid Corporation of India, headquartered in Gurugram, is a major electric power transmission utility that was previously known as National power Transmission Corporation. With a strong presence in three segments, the company boasts ownership of 176,109 circuit kilometers of transmission lines and 275 substations, with an impressive capacity of 512,001 mega-volt amperes as of July 31, 2023. Additionally, PGCI also offers optic fiber network services through POWERTEL and has ventured into the electric vehicle market by providing EV charging stations. In the Indian power transmission sector, this company holds fifth position in the list of top 5 energy stocks in India.
- Current Market Price – ₹288
- Market Capitalization – ₹257,115crore
- Earning Yield of 6.12 %
- The company has reported a strong Net Margin of 34.09% for the last 12 months.
- Excellent Net Margin over the previous three years.
- Every major trailing 12-month margin increased by 15%.
- A reasonable 4.39 percent dividend yield
- The company achieves a good return on equity of 18.63%.
Read Also: 5 Best Railway Stocks in India for Long Term Growth
Top 5 Energy Stocks in India List With Price
| Stock Names | CMP | Market Cap (Cr) | PE Ratio | ROE | EPS |
|---|---|---|---|---|---|
|
Reliance Industries |
₹29,451.55 |
₹1,993,272 |
28.49 |
9.12% |
103.42 |
|
Adani Green Energy |
₹1,933.30 |
₹309,457 |
212.35 |
18.40% |
9.20 |
|
Tata Power Company |
₹378.90 |
₹121,583 |
33.97 |
11.85% |
11.20 |
|
NTPC |
₹343.95 |
₹328,572 |
16.85 |
12.45% |
20.11 |
|
Power Grid Corp |
₹288.00 |
₹257,115 |
16.35 |
17.66% |
16.91 |
Note: The above figures have been taken from google finance.
Conclusion
India’s energy sector is thriving, driven by environmental consciousness and government support. The push for 500 GW by 2030 has attracted substantial investments, evident in the increased budget allocation of Rs. 10,222 crore. For potential investors, our list of the Top 5 Energy Stocks in India offers a gateway to this growing market. Join the sustainable movement and explore these promising stocks for a greener and potentially lucrative future.
Frequently Asked Questions (FAQ)
The energy sector comprises stocks associated with the production and distribution of energy. It encompasses companies engaged in activities such as oil and gas exploration, drilling, and refining.
Here is the list of top 5 energy stock in India in 2024
- Reliance Industries
- Adani Green Energy
- Tata Power Company
- NTPC
- Power Grid Corp