The Indian renewable energy industry is estimated to grow at a CAGR of more than 10 percent between 2023 and 2028.In the long run, the business is expected to be pushed by factors such as supportive government regulations, growing environmental consciousness, subsidies, and tax breaks 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 will most likely give chances for future industry expansion. As a result, additional investments in the green energy industry are projected to spur future market growth.
Here are three Multibagger green energy stocks and their future prospects
KPI Green Energy Ltd.
KPI Green Energy Ltd is a small-cap stock with a market capitalization of Rs 3,284 crore. The company’s shares were trading at Rs 909.10 apiece, up 4.92 percent on Thursday.
The company has delivered multibagger returns of 111 percent over a year. A shareholder’s investment of Rs. 1 lakh in the company would be worth Rs. 2.11 lakhs after a year.
The company’s margins have improved over time, currently, the net profit margin is 17.02 percent and the operating profit margin is 29.37 percent. Similarly a return on equity at 21.25 percent and a return on capital employed at 10.68 percent.
KPI Green Energy Ltd has more than 116 orders for IPP and CPP projects, out of which 74+ are for CPP further strengthening the future income prospects. The company intends to deploy robots for waterless and more effective cleaning of solar panels, enhancing efficiency.
K.P. Energy Ltd
K.P. Energy Ltd has a market valuation of Rs 915 crore and is a small-cap stock. On Thursday, the company’s shares were trading at Rs 410.55 per share, up 4.20 percent.
K.P. Energy stock has delivered multibagger returns of 120 percent in six months and 150 percent over a year. A shareholder’s investment of Rs. 1 lakh in the company would be worth Rs. 2.50 lakhs after a year and Rs. 2.20 lakhs after a half-year.
The company’s margins have increased over time, with the net profit margin presently standing at 10.28 percent and the operating profit margin at 16.07 percent. Similarly, the return on equity is 34.15 percent and the return on capital employed is 33.0 percent.
K.P.Energy intends to install over 1,000 MW of solar power by 2025. It has already electrified over 310 MW of capacity in the IPP and CPP verticals. It has also recently installed India’s first windmill, which stands around 140 meters tall and has a 2.7 MW capacity.
SJVN Ltd
SJVN Ltd is a mid-cap stock with a market capitalization of Rs 23,458 crore. The company’s shares were trading at Rs 57.05 apiece, down 2.31 percent on Thursday.
The company has delivered multibagger returns of 107 percent over a year. A shareholder’s investment of Rs. 1 lakh in the company would be worth Rs. 2.07 lakhs after a year.
The company’s margins have increased over time, with the net profit margin presently standing at 46.11 percent and the operating profit margin being at 74.12 percent. Similarly, the return on equity is 9.80 percent and the return on capital employed is 7.76 percent.
SJVN Ltd intends to have 5,000 MW capacity by 2023-24, 25,000 MW capacity by 2030, and 50,000 MW capacity by 2040. The business has signed an agreement with Maharashtra State Power Generation business to create 5,000 MW of renewable energy projects in the state.
Written by Omkar Chitnis
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