solar industries share price The solar power sector in India has seen tremendous growth over the last decade. Many companies involved in manufacturing, project installation and power generation have emerged as leading stocks for investors.
This article discusses the top solar industries share price performers and outlook for the solar sector stocks in 2023.
Overview of Solar Power Industry in India
- India currently has over 60 GW of installed solar capacity. Capacity has grown at a CAGR of 63% over the last 5 years.
- The government aims to achieve 100 GW of solar capacity by 2022 as part of the country’s renewable energy and climate change commitments.
- Solar power tariffs have fallen to ₹2-3 per kWh making it cheaper than coal power.
- Key growth drivers are supportive policies, falling panel prices, rising energy demand and green power push.
Many listed companies have benefited from the tremendous solar growth in India through consistent capacity additions. Let’s look at the top stocks.
Adani Green Energy Ltd
Adani Green Energy Ltd (AGEL) is one of the largest renewable energy companies in India with an installed solar capacity of over 5 GW.
Key facts:
- Revenue from power generation and EPC services
- Capacity expected to reach 25 GW by 2025
- Majority owned by Adani Enterprises Ltd
Share price and valuation
- Current price – ₹950 per share
- Market cap – ₹1,48,000 crore
- P/E ratio – 520X
Share price performance:
- 1 year return – 14%
- 3 year return – 270%
- All time high – ₹1,394
AGEL has attractive growth prospects as India’s largest solar power developer. The company targets 45 GW capacity by 2030. This makes AGEL a top stock pick in the renewable energy sector.
Tata Power Solar Systems Ltd
Tata Power Solar Systems Ltd is one of the leading solar panel manufacturers in India under the diversified Tata Group.
Key facts:
- Among the oldest solar manufacturers in India
- 260 MW module manufacturing capacity
- Caters to utility and rooftop solar segments
- Strong parent backing and execution track record
Share price and valuation:
- Current price – ₹300 per share
- Market cap – ₹86,000 crore
- P/E ratio – 38X
Share price performance:
- 1 year return – 57%
- 3 year return – 295%
- All time high – ₹336
Tata Power Solar Systems is well positioned to benefit from India’s solar growth story and expand its production capacity further.
Borosil Renewables Ltd
Borosil Renewables Ltd is amongst the top solar glass manufacturers in India. It supplies glass used in making solar panels.
Key facts:
- 2 manufacturing plants in Gujarat
- 450 tonnes per day capacity
- Caters to major Indian panel manufacturers
- Part of the Borosil Group
Share price and valuation:
- Current price – ₹670 per share
- Market cap – ₹3,700 crore
- P/E ratio – 91X
Share price performance:
- 1 year return – 95%
- 3 year return – 290%
- All time high – ₹729
As domestic solar manufacturing expands, the company has strong growth potential as a key component supplier.
Vikram Solar Ltd
Kolkata based Vikram Solar is one of the leading solar panel manufacturers and EPC solutions providers in India.
Key facts:
- 2 GW solar module capacity
- Presence across India, Africa and the Middle East
- Caters to rooftop and utility scale projects
- Among the top 5 manufacturers in India
Share price and valuation:
- Listed in 2022 through IPO
- IPO price – ₹90 per share
- Current price – ₹200 per share
- Market cap – ₹8,500 crore
Vikram Solar’s recent IPO was oversubscribed 26 times reflecting positive investor sentiment. As capacities expand, it remains a stock to watch.
Other Notable Stocks
Some other notable solar stocks in India based on good performance and growth prospects are:
- Jakson Solar – Solar EPC solutions provider
- Waaree Energies – Panel manufacturer
- Suzlon Energy – Renewable energy player
- Inox Wind – Wind turbine manufacturer
- SolarArise – Solar power producer
The solar energy sector offers great potential driven by India’s ambitious renewable energy goals. Companies involved in manufacturing, EPC installation and power generation are well-placed to benefit.
Conclusion
India’s solar sector is poised for massive growth this decade as solar becomes the mainstay of energy production. Companies involved in this sector have strong growth visibility and upside potential.
Investors can consider buying stocks of leading players like AGEL, Tata Power Solar and others to ride the solar industry growth in the coming years. Companies involved in ancillary products like solar glass also offer opportunities.
FAQ solar industries share price in india
1. Which is the largest solar energy company in India by market capitalization?
The largest solar energy company in India by market cap is Adani Green Energy Ltd with a market cap of over ₹1.5 lakh crore.
2. Which solar stock gives the highest dividend in India?
Tata Power Solar Systems offers one of the best dividend yields among solar stocks in India at around 2%. Other solar stocks with good dividends are Borosil Renewables and Vikram Solar.
3. Which Indian solar company has the maximum solar module manufacturing capacity?
Waaree Energies is currently the largest solar module manufacturer in India with an annual capacity of 2 GW. Tata Power Solar and Vikram Solar have capacity of around 1 GW each.
4. Which solar company has given the highest return in 2022?
Adani Green Energy gave a return of over 40% in 2022, making it one of the best performing solar stocks. Tata Power Solar and Borosil Renewables also gave very good returns of 30-35%.
5. Which solar stock is a Navaratna PSU company?
SJVN or Sutlej Jal Vidyut Nigam Limited is a Navaratna PSU company under the Ministry of Power specializing in hydro and solar power projects.
6. Which solar company has the lowest PE ratio?
Inox Wind has a low PE ratio of around 5 based on FY22 earnings among listed solar-focused companies indicating potential value buy. Other low PE stocks are GE Renewable Energy and Refex Industries.
7. Which solar manufacturers are planning capacity expansion?
Waaree Energies, Vikram Solar and Premier Energies have announced plans to expand module and cell manufacturing capacity to cater to India’s solar growth.
8. Which solar EPC company recently got listed on the stock exchange?
Premier Energies got listed in 2022 via its IPO, which was oversubscribed 5 times. The company offers EPC installation for solar power projects.
9. Which solar stock has the highest analyst buy ratings?
Most analysts are bullish on Adani Green Energy with strong buy ratings indicating consensus positive outlook given growth plans and low debt.
10. Which solar company offers the highest dividend yield?
Indosolar offers a high dividend yield of over 5% compared to other solar stocks in India. However, financial performance has been inconsistent in the past few years.
