India’s green energy industry is rapidly expanding, with renewable energy capacity reaching 168.96 GW in 2023, accounting for 41% of total installed power. Government initiatives aim for 500 GW by 2030, driven by solar, wind, and hydro projects, positioning India as a global leader in renewable energy.
Green energy stocks with an potential upside up to 30%:-
Suzlon Energy Limited
Suzlon Energy Limited is an India-based renewable energy solutions provider. The Company is engaged n the business of manufacturing of wind turbine generators (WTGs) and related components of various Capacities. It operates in approximately 17 countries across Asia, Australia, Europe, Africa and the Americas.
With a market capitalization of Rs 64,781.59 crore, the shares closed at Rs 47.62 per share, increased around 4.98 percent as compared to the previous closing price..
Nuvama, one of the well-known brokerages in India, gave a ‘Buy’ call on the green energy stock with a target price of Rs 53 apiece, indicating a potential upside of 11 percent from Friday’s price of Rs 47.62 per share.
As Suzlon, is a market leader in the wind turbine generator market with a market share of 27 percent. According to the brokerage, the company’s growth prospects are supported by market tailwinds, a technology advantage, strong margins in Operations & Maintenance (O&M) services, and balance-sheet strength.
Moreover, Nuvama, also added that Suzlon is capable of maintaining its market leadership in Wind Turbine Generators. This can result in its order book and net profit increasing at a Compounded Annual Growth Rate (CAGR) of 21% and 61%, respectively, from fiscal year 2024 to 2027.
The company’s revenue stood at Rs 2,196 crore in Q4FY24, during the same time frame, net profit stood at Rs 254 crore.
Inox Wind Ltd
Inox Wind Limited manufactures and sells wind turbine generators. It also offers installation, procurement, and commissioning (EPC), operations and maintenance (O&M), and common infrastructure facilities for wind turbines, as well as wind farm development services.
With a market capitalization of Rs 19,276.59 crore, the shares closed at Rs 147.85 per share, increased around 1.65 percent as compared to the previous closing price.
Nuvama, one of the well-known brokerages in India, gave a ‘Buy’ call on the green energy stock with a target price of Rs 193 apiece, indicating a potential upside of 30 percent from Friday’s price of Rs 146.60 per share.
Nuvama forecasts Inox Wind’s order book and revenue to rise at a compound annual growth rate (CAGR) of 44% and 73%, respectively, driven by debt-equity reduction, EPC capacity, and an EBITDA margin of more than 30% in O&M services.
Inox Wind’s order book has expanded by about four times since March 2023, including a binding framework agreement with CESC for 1,500 MW Wind Turbine Generators over three to four years. “New orders have a better margin product mix,” according to Nuvama. The management has also set targets of 800 MW and 1,200 MW for the fiscal years 2025 and 2026, respectively.
The company’s revenue stood at Rs 528 crore in Q4FY24, during the same time frame, net profit stood at Rs 37 crore.
Written by:- Abhishek Singh
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