Today, we recommend two stocks from the green energy sector, recommended by the Trade Brains Portal, to buy for an upside potential of more than 22%. India’s renewable energy sector is experiencing robust growth, with significant capacity additions in solar and wind power, as the country aims towards achieving 500 GW of renewable capacity by 2030. We also analyzed the market’s performance on Tuesday to understand what may lie ahead for the stock indices in the coming days.
1. KPI Green Energy
- Current price: ₹ 507
- Target price: ₹ 625
- Upside: 23%
- Time frame: 12-14 Months
To view the report for the stock mentioned above or explore other stock recommendations, click here
Why it’s recommended
KP Group is a well-known renewable energy company in India that was founded in 1994. With its publicly traded firms, KPI Green Energy, KP Energy, and KP Green Engineering, it has developed over 5.75 GW of solar, wind, and hybrid assets. KPI Green Energy was established in 2008 and focuses on solar and hybrid energy. In addition to building, owning, operating, and maintaining power plants as an independent power producer, it also provides services to captive power producers under the “Solarism” brand. The firm has 2.95 GW of orders in hand, more than 5,946 acres of land bank, and more than 950 MW of installed capacity as of FY25.
Operating revenue increased 69% year over year from Rs 1,024 crore in FY24 to Rs 1,735 crore in FY25. The revenue portion of IPP was 13% as of FY25, but the revenue share of CPP was 87%. From Rs 343 crore in FY24 to Rs 581 crore in FY25, EBITDA also grew 69% year over year. From Rs 162 crore in FY24 to Rs 325 crore in FY25, profit after tax rose by 101%.
It has a total installed capacity of 950+ MW, with 503+ MW installed as an Independent Power Producer (IPP) and 447+ MW installed as a Captive Power Producer (CPP). The IPP produces a strong EBITDA margin of around 85% to 90%, whereas the CPP has an EBITDA margin of roughly 20% to 22%. Therefore, after the additional capacity, the overall EBITDA margin would therefore be between 32% and 33%.
The firm has 2.96+ GW of cumulative impending capacity, 1.2+ GW of future capacity as an Independent Power Producer (IPP), and more than 1.76 GW of upcoming capacity as a Captive Power Producer (CPP). Apart from actively engaging in bids, KPI is working on a captive BESS project with a capacity of 5 MW.
KP Group is currently developing a 1 MW captive green hydrogen plant, which is expected to be completed in FY26. The company intends to raise its IPP portfolio from its present 13% to 25% by installing more than 1.20 GW.
Risk Factor
In Gujarat, the Group is fully operating (IPP+CPP). The risk of geographic concentration raises the regulatory risk associated with any negative changes in state policy or an increase in regional competition, which may have an impact on the group’s margins.
2. NTPC Green Energy Ltd.
- Current price: ₹ 107
- Target price: ₹ 130
- Upside: 22%
- Time frame: 12-14 months
To view the report for the stock mentioned above or explore other stock recommendations, click here
Why it’s recommended
NTPC Green Energy is the umbrella organization for NTPC’s green business activities and is the largest renewable energy public sector firm in India in terms of operating capacity (apart from hydro). NGEL focuses on both organic and inorganic projects to direct NTPC’s green energy trajectory and assist the company in reaching its ambitious goal of 60 GW by FY32.
The varied range of NGEL’s commercial ventures includes energy storage, hybrid power, solar power, wind power, and green hydrogen. With over 3.4 GW of capacity, the business has completed 17 projects and has 24 projects in progress.
In FY25, NGEL recorded operating revenue of Rs 2,210 crore, a 12.5% increase over FY24’s Rs 1,963 crore. EBITDA was Rs 2,173 crore, a 19.4% increase over Rs 1,819 crore the year before. At Rs 474 crore, profit after tax increased by 38%.
NTPC Renewable Energy Ltd., a wholly owned subsidiary of NTPC Green Energy, won a 500 MW solar power contract in the Solar Energy Corporation of India Ltd. auction for the building of 2,000 MW of solar photovoltaic power plants connected to the interstate transmission system. There is also an auction for the installation of energy storage devices with a combined capacity of 1,000 MW and 4,000 MWh.
The business has inked a memorandum of understanding with the industries department of Bihar to construct renewable energy projects in the state, including battery energy storage systems, ground-mounted and floating solar arrays, and green hydrogen mobility projects. Additionally, Uttar Pradesh Power Corporation Ltd. awarded a 1,000 MW solar PV power project to NTPC Renewable Energy.
The firm had a competitive tariff-based bid order book as of April for the construction of 9.8 GW of solar projects, 0.2 GW of wind projects, and 3.5 GW of continuously operating hybrid projects. The NTPC company plans to increase its renewable energy capacity to 60 GW by 2032 using NGEL.
Risk factor
With about 13.5 GW of capacity being built in NGEL and its subsidiaries, 1.9 GW in Ayana, and an additional 1.8 GW in other joint ventures, NTPC Green Energy is vulnerable to schedule and cost overruns in these under-construction assets. Engineering, procurement, and construction are the company’s main project execution methods, and they also contain procedures for claiming liquidated damages for delays in commissioning. Cost hikes for unawarded projects are still a possibility.
Market Recap 8th July 2025:
The Nifty 50, after opening above all the EMA on Tuesday at 25,427.85, surging to the day’s high of 25,548.05, and closing at 25,522.50, closed the day on the upside of 61.20 points or 0.24%. The BSE Sensex increased 270.01 points, or 0.32%, opening at 83,387.03, indicating a positive trend and closing at 83,712.51. Both indices were trading above all four EMAs (20/50/100/200), with the Nifty 50 RSI at 62.53 and the BSE Sensex RSI at 61.97 (far below the overbought threshold of 70). Both benchmark indices saw modest gains driven by an increase in retail investor confidence while being cautious of awaited results from the India-US trade agreement.
Indices showed mixed signals on Tuesday. The largest sectoral gainer was Nifty Realty, which closed at 982.35, up 9.60 points, or 0.99%. Gains of more than 1.5% were recorded by Brigade Enterprises, Prestige Estate Projects, and Phoenix Mills.
The Nifty CPSE index was also among the top gainers, increasing 59.60 points, or 0.91%, to settle at 6,636.90. With advances of more than 1% in stocks like NHPC, NTPC, and Bharat Electronics Ltd.
On the other hand, the Nifty Consumer Durable index dropped 895.50 points, or 2.29%, and closed at 38,248.80. Titan Company Ltd saw a decline of more than 6%, mainly due to the underperformance of its jewellery segment from its estimates, followed by other stocks like Whirlpool of India Ltd, PG Electroplast, and Crompton Greaves Consumer Electricals Ltd, which fell more than 2%, causing the index to fall. In addition, the Nifty Health Index dropped -131.30 points, or -0.89%, to end the day at 14,588. Stocks such as Aurobindo Pharma, Lupin, Granules India, and Dr. Reddy’s Laboratories fell more than 2% on Tuesday.
Asian markets ended mostly in green on Tuesday. The Hong Kong Hang Seng index gained 1.08%, or 260.24 points, to close at 24,148.07, while the South Korean Kospi index gained 1.78%, or 55.48 points, to close at 3,114.95. Japan’s Nikkei 225 ended the day with gains, up by 101.13 points, or 0.25%, at 39,688.81. The Shanghai index also ended in green at 3,473.13, up by 24.35 points, or 0.70%. On Tuesday, the US Dow Jones Futures closed at 44,416.46, up 11.09 points, or 0.03%, as of 5:00 PM.
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