The Indian government has set an ambitious target of achieving 500 GW of renewable energy capacity by 2030, with a strong focus on solar energy. India’s solar energy sector has expanded rapidly, reaching an installed capacity of over 70 GW in 2024.
The government’s initiative to expand solar energy infrastructure is expected to open new markets and opportunities for solar companies, attracting both domestic and foreign investments, which could further boost stock performance.
As the government aims for substantial solar capacity, companies involved in solar panel manufacturing, installation, and maintenance are likely to see increased demand, leading to higher revenues and profits, positively impacting their stock prices.
Furthermore, the Indian government has introduced various policies and incentives to promote solar energy, such as production-linked incentives and renewable purchase obligations. These measures create a favorable environment for solar companies, enhancing their growth prospects and benefiting solar energy stocks.
Here are some solar energy stocks with high Return on Equity (ROE) and Return on Capital Employed (ROCE) that are actively involved in the solar energy business:
KPI Green Energy Limited is focused on providing solar power through different business verticals. The Company develops, builds, owns, operates, and maintains solar power plants as an Independent Power Producer (IPP) and Captive Power Producer (CPP), both under the brand name Solarism.
With a market capitalization of Rs 11,892 crore, the shares closed at Rs 906 per share, increasing around 4.80 percent as compared to the previous closing price.
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KPI Green Energy Ltd. reported return ratios in the recent financial year with a return on equity (ROE) of 13.88 percent and a return on capital employed (ROCE) of 12.57 percent. The company’s stock has delivered multi-bagger returns of 201 percent in a year.
Examine the company’s financial performance, revenue being magnified by 84 percent from Rs 189 crore in Q1FY24 to Rs 348 crore in Q1FY25, and during the same time frame, net profit also zoomed by 100 percent from Rs 33 crore to Rs 66 crore.
Oriana Power Ltd
Oriana Power Limited focuses on offering solar energy solutions to industrial and commercial customers. It provides low-carbon energy solutions by constructing on-site solar projects including rooftop and ground-mounted systems, as well as off-site solar farms.
With a market capitalization of Rs 4,007 crore, the shares closed at Rs 2,089 per share, increasing around 2.54 percent as compared to the previous closing price.
The company reported return ratios in the recent financial year with a return on equity (ROE) of 37.18 percent and a return on capital employed (ROCE) of 24.77 percent. The company’s stock has delivered multi-bagger returns of 483 percent in a year.
Examine the company’s financial performance, revenue being magnified by 398 percent from Rs 64 crore in Q2FY24 to Rs 319 crore in Q4FY24, and during the same time frame, net profit also zoomed by 719 percent from Rs 6 crore to Rs 49 crore.
Gensol Engineering Ltd
Gensol Engineering Limited provides technical due diligence, comprehensive engineering, quality control, construction supervision, and other consultancy services for solar projects across many regions, including India.
With a market capitalization of Rs 3,634 crore, On Friday, the shares closed at Rs 959 per share, declining around 0.54 percent as compared to the previous closing price.
The company reported return ratios in the recent financial year with a return on equity (ROE) of 23.39 percent and a return on capital employed (ROCE) of 11.84 percent.
Examine the company’s financial performance, revenue being magnified by 103 percent from Rs 145 crore in Q1FY24 to Rs 295 crore in Q1FY25, and during the same time frame, net profit also zoomed by 50 percent from Rs 10 crore to Rs 15 crore.
Written by:- Abhishek Singh
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