The solar industry manufactures and installs equipment that utilizes energy from the sun and converts it to electricity. Companies in this area are cooperating to help the world economy move away from fossil fuels like oil and gas and toward renewable energy sources. The Indian government has set a lofty goal of generating 175 GW of renewable energy capacity by 2022. Solar power is a rapidly growing industry in India, as part of the country's renewable energy sector. As of March 31, 2021, the country's solar installed capacity was 40.09 GW. By 2022, India's renewable energy sector is estimated to bring in more than US$ 80 billion.
Tata Power Limited, a subsidiary of the Tata Group, is an Indian electric utility company situated in Mumbai, Maharashtra. The company's main activity is to generate, transfer, and distribute electricity. Tata Power has established TP Akkalkot Renewable Ltd, a special purpose vehicle (SPV) that will be responsible for the building, operation, and maintenance of this captive solar power plant.
The company's debt has been reduced by 16.04 crores. The firm has a high level of operating leverage, with average operating leverage of 4.13. With a current ratio of 3.56, the company has a strong liquidity position. Tata Power's current year dividend is Rs 1.55, with a yield of 1.25 percent.
Tata Solar has embarked on a rooftop solar installation binge. It is also one of India's largest and oldest solar panel manufacturing plants, given the courtesy.
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Suzlon is a leading renewable energy company in India. Wind turbine generators are designed, developed, and manufactured by the corporation (WTGs). It is a company that creates, develops, and manufactures wind turbine generators (WTGs). It also offers ancillary services, giving it a significant presence throughout the wind energy value chain.
The company has a high level of operating leverage, with an average operating leverage of 56.32 percent. Suzlon Energy has a PE ratio of -17.67, which is low and inexpensive compared to its peers. Suzlon Energy has a D/E ratio of -1.16, indicating that the company has a low debt-to-capital ratio. Over the last three years, the company has had a dismal ROE of 6.77 percent. In the past year, the stock has given a return of 68%.
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Adani Power Limited is the power division of the Adani Group, an Indian conglomerate headquartered in Ahmedabad, Gujarat. Adani Power has a D/E ratio of 1.90, indicating that the company has a low debt-to-capital ratio. Adani Power's operating margin for the current financial year is 8.74 percent. The current ratio of Adani Power is 0.15.
The green energy investments sparked value purchasing and partial payments to the Rajasthan and Maharashtra governments that had been long overdue. Aside from that, the cancellation of Adani Power's delisting has aided the company's share price surge. In the past year, the stock has given a fantastic return of 202% and YTD returns of 113%.
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Top 4 Indian Solar Company Stocks To Watch Out
Websol Energy System
In India, it is a significant manufacturer of solar cells and panels. The company has a reputation for high-quality products ranging from 5 W to 220 W, catering to the demands of home, commercial, and industrial institutions, and has been in business for more than two decades.
Websol Energy System has a market capitalization of Rs 221.12 crore. The company generated gross sales of Rs. 1955.42 crores and total income of Rs.2064.41 crores in the most recent quarter. It has a PE ratio of 3.26, which is low and cheap compared to its peers. The stock gained 57.4 percent over three years, compared to 39.97 percent for the Nifty Smallcap 100. The D/E ratio of Websol Energy System is 0.61, indicating that the company has a low debt-to-capital ratio. Given its development and performance, Websol Energy System's revenue climbed by 185.22 percent, which is respectable.
Swelect Energy Systems
Swelect Energy Systems Limited is a solar module, mounting structure, transformer, and inverter manufacturer and trader based in India, Europe, and internationally. Solar and Solar Related Activities, Foundry Business, and others are the company's three segments.
Swelect Energy's PE ratio is 16.52, which is excessive and overvalued in comparison. Swelect Energy has a negative return on investment (ROI) of -1.89 percent, which is a bad omen for future performance. (higher values are always desirable). The current year dividend for Swelect Energy is Rs 2 and the yield is 1.12 %.
Numeric Power Systems Limited was the company's previous name until May 2012, when it was renamed Swelect Energy Systems Limited. Swelect Energy Systems Limited is based in Chennai, India, and was founded in 1994.
The current share price of Swelect Energy Systems is 260.25. It currently has a market capitalization of Rs 402.01 crore. The company reported gross sales of Rs. 1420.4 crores and total income of Rs. 1737.5 crores in the most recent quarter.
In comparison to the Nifty Smallcap 100, which returned 48.85 percent over three years, the stock returned 59.04 percent. Surana Solar Ltd. was founded in 2006 and is based in India. The current share price is 13.64. It now has a market capitalization of Rs 64.61 crore.
The company's debt has been reduced by 16.04 crores. The firm has a high level of operating leverage, with average operating leverage of 4.13. With a current ratio of 3.56, the company has a strong liquidity position.
Urja Global Ltd. was founded in 1992 and is based in the United Kingdom. The current share price is Rs. 7.55. It now has a market capitalization of Rs 422.36 crore. The company reported gross sales of Rs. 1445.59 crores and a total income of Rs.1463.63 crores in the most recent quarter. The stock returned 149.18 percent over three years, compared to 48.85 percent for the Nifty Smallcap 100. A greater current ratio is desirable so that the corporation can withstand unanticipated business and economic downturns. The current ratio of Urja Global is 1.09. The organization can take advantage of India's rural development wave of opportunity and optimism surrounding solar energy.
Highlights of Renewable Energy
- India has the world's fifth-largest installed renewable energy capacity.
- India's Wind power has the fourth greatest installed capacity in the world.
- In the last five years, solar power capacity has expanded by more than 5 times, from 6.7 GW to 40 GW in March 2021.
- By 2030, the Indian government wants to boost overall renewable energy capacity to 450 GW. Gujarat is now constructing the world's largest renewable energy park, a 30 GW solar-wind hybrid project.
- India has the world's fifth-largest solar installed capacity.
- ReNew Power, Vikram Solar, Indosolar, Waaree Solar are some of the popular non-listed solar companies.