The Indian renewable energy industry is estimated to grow at a CAGR of more than 10% between 2023 and 2028.In the long run, the industry is projected to be driven by factors such as government rules that assist, increased environmental awareness, incentives, and tax advantages for installing solar panels.
The Ministry of New and Renewable Energy has set a target of 500 GW of installed renewable energy capacity by 2030, which is likely to provide future industry growth opportunities.As a result, more investments in the green energy industry are likely to promote market growth in the future.
Here are two multibagger green energy stocks
Inox Wind Energy Limited
Inox Wind Energy Limited is in the business of generating and distributing wind energy, as well as providing services for wind farm erection, procurement, and commissioning.
With a market capitalization of Rs 2,625 crores, the firm falls under the Small-cap category. On July 18, the stock closed at Rs 2,340.20 per share, a 2.52 percent decrease from the previous close price.
The company’s share price has climbed from Rs 510.85 to current values in the last year, yielding multibagger returns of 360%. Therefore, if an investor purchased 1 lakh company shares in the previous year, their holdings would now be worth 4.59 lakhs!
Inox Wind has planned to expand operations and in the process of setting up an integrated wind turbine manufacturing facility in Madhya Pradesh at an investment of about Rs 250 crore.The company to manufacture 800 mw of nacelles and hubs, 800 mw of blades and 600 mw for wind towers at the new facility which is likely to be commissioned in phases over the next year.
The Inox Wind Board of Directors has approved the merging of Inox Wind Energy Limited with the Company in order to assure the integration of wind energy company operations, which will result in higher efficiency and lower operating costs.
Company’s revenues increased by 22% year on year, from Rs 597 crores in FY 21-22 to Rs 733 crores in FY 22-23. In comparison, the net loss has grown by 100 percent, from Rs 332 crores to Rs 664 crores.
Suzlon Energy Ltd
Suzlon Energy Ltd., a leading provider of end-to-end wind power solutions in India, manufactures wind turbine generators, power generation, and associated equipment.
With a market capitalization of Rs 21,966 crores, the company falls under the Mid-cap category. On July 18, shares closed at Rs 17.90 per share, a 1.65% decrease from the previous closure price.
The company’s share price climbed from Rs 6.03 to current values during the last year, yielding 197% multibagger gains. As a result, if an investor bought 1 lakh company shares in the previous year, their holdings are now worth 2.97 lakhs!
Suzlon has a 1.5 gw order book as of March 31, 2023, with plans to execute around half of it in the current fiscal year and the remainder in fiscal 2025.
The National Green Hydrogen Mission, which aims for a capacity of 5-10 million tonnes per year by 2030, would require an extra 125-250 gw of renewable energy capacity by 2030, according to the company. It will open up further chances for the firm’s wind sector, allowing it to satisfy the high demand. The company is prepared and equipped with a strong product portfolio, as well as a considerably improved balance sheet, compared to FY20.
Suzlon Energy has been awarded a contract to design and build an innovative hybrid lattice tubular (HLT) tower for a project that is planned to be completed in FY25.
Revenue declined by 9.2% year on year, from Rs 6,581 crore in FY 21-22 to Rs 5,970 crore in FY 22-23. Net profit has increased by 1,839%, from a loss of Rs 166 crore to a profit of Rs 2,887 crore, and its debt-to-equity ratio is 1.73.
Written by Omkar Chitnis
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