The “new solar rooftop scheme” refers to the Pradhan Mantri Suryodaya Yojana, a government scheme launched by Prime Minister Narendra Modi. The scheme aims to expand India’s rooftop solar installed capacity in the residential sector by providing rooftop solar power systems to one crore households.
The goal is to increase rooftop solar installed capacity to 40 GW by March 2026. The Ministry of New and Renewable Energy (MNRE) will select the projects based on submissions made by private contractors to build the project.
The scheme is an attempt to help reach the target of 40 GW rooftop solar capacity and expand solar power capacity in India. After the announcement of the new scheme, most of the stocks associated with solar and related equipment touched all-time highs.
Listed below are the stocks that may benefit from the new solar rooftop scheme:
Waaree Renewables Technologies Ltd
With a market capitalization of Rs. 6,267 crores, the shares of Waaree Renewables Technologies started Tuesday’s trading session on a higher note at Rs.3,008 compared to its previous close of Rs. 2,865.55.
Within a few minutes of the opening bell, the shares clocked a 5 percent upper circuit at Rs. 3,008.80, also recorded as the company’s fresh 52-week high. The shares have delivered a multibagger return of 528 percent to its shareholders in one year.
Looking at the company’s latest financial statements, the revenue zoomed by 116 percent from Rs. 150 crores during the September quarter to Rs. 324 crores in the December quarter. In addition, the net profits magnified by 255 percent from Rs. 18 crores to Rs. 64 crores during the same period.
As of August 2023, the company successfully executed orders of more than 96 MW and more than 856 MW projects were yet to be executed. It has India’s largest Solar panel manufacturing capacity of 12GW at its plants in Chikhli, Surat and Umbergaon in Gujarat. Furthermore, they have executed more than 10,00 projects in Pumps, Telecom and Rooftop.
Tata Power Company Ltd
With a market capitalization of Rs.1,09,920 crores, the shares of Tata Power Company started Tuesday’s trading session on a higher note at Rs.365 compared to its previous close of Rs. 345.85.
During the trading session, the shares hit a high of Rs. 365.75, gaining around 5, also recorded as the company’s fresh 52-week high. The shares have delivered a whooping return of 67 percent to its shareholders in one year.
Looking at the company’s latest financial statements, the revenue increased marginally by around 3 percent from Rs.15,213 crores in the June quarter to Rs. 15,738 during the September quarter. On a contrasting note, during the same timeframe, the net profit declined by 6 percent from Rs.1,141 crores to Rs.1,017 crores.
The company has achieved an order book of 4,391 MW which amounts to Rs. 18,700 crores and they aim to achieve an order book of Rs. 20,000 crores by FY 30.
Moreover, the company is expected to invest a CAPEX of Rs.11,000 crores for the full year and they aim to deliver good returns in the renewable sector and plans to focus on hybrid projects and 24/7 renewable power.
Sterling & Wilson Renewable Energy Ltd
With a market capitalization of Rs. 12,128 crores, the shares of Sterling and Wilson Renewable Energy Ltd started Tuesday’s trading session on a higher note at Rs. 529.35 compared to its previous close of Rs. 504.15.
During the trading session, the share hit a 5 percent upper circuit at Rs. 529.35 apiece, also recorded as the company’s fresh 52-week high. The shares have delivered more than 90 percent to its shareholders in one year. The company is backed by the strong parentage of Reliance Industries.
Looking at the company’s latest financial statements, the revenue decreased by around 23 percent from Rs. 760 crores in the September quarter to Rs. 583 crores during the December quarter. In addition, during the same timeframe, the net losses broadened from Rs. 55 crores to Rs.62 crores.
As of January 17, 2024, the company’s order book increased to approximately Rs. 8,750 crores, with nearly 98 percent of the order book comprising domestic EPC projects.
The total new orders of the company comprised approximately Rs. 5,527 crores in Q3 FY2024. Furthermore, the company is working on finalizing the D&EPC agreement for the Nigeria project, which is expected to enhance the order pipeline significantly.
Borosil Renewables Ltd
With a market capitalization of Rs. 7,504 crores, the shares of Borosil Renewables Ltd started Tuesday’s trading session on a higher note at Rs. 561 compared to its previous close of Rs. 507.70. During the trading session, the share hit a high of Rs. 602, gaining around 15 percent, also recorded as the company’s fresh 52-week high.
Looking at the company’s latest financial statements, the revenue increased by around 15 percent from Rs.354 crores in the June quarter to Rs. 402 during the September quarter.
On a contrasting note, during the same timeframe, the net profits showcased a transition from a net loss of Rs. 12 crores to a net profit of Rs. 30 crores.
According to reports, as of September 2023, the company order book stood at Rs. 191.2 billion. Furthermore, the company plans to rebuild existing furnaces at an estimated cost of Rs.120 crores and expects to achieve full capacity utilization in the remaining part of the year.
Written By Vaibhav Patil
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