Top Green Energy Stocks with Strong FII Backing

In the realm of investment, the allure of Top green energy stocks continues to surge as a beacon of sustainable growth and promising returns. With the global shift towards renewable energy sources gaining momentum, savvy investors are turning their focus towards companies pioneering innovation and progress in the green energy sector.

Our comprehensive guide navigates this landscape, spotlighting green energy stocks with substantial Foreign Institutional Investor (FII) support, providing a roadmap for investors keen on capitalizing on these lucrative opportunities.

Decoding Green Energy Stocks

Green energy stocks encapsulate companies engaged in the production, distribution, and utilization of renewable energy sources like solar, wind, hydroelectric, and geothermal power. These entities play a pivotal role in steering the world towards cleaner, sustainable energy alternatives, thereby reducing reliance on fossil fuels and combating environmental degradation.

Also Read : Best Electric Vehicle Companies India

Significance of FII Endorsement

Foreign Institutional Investors (FIIs) wield considerable influence in financial markets, representing institutional investors, hedge funds, and sovereign wealth funds from abroad. High FII holdings in a specific stock signify confidence and interest from international investors, serving as a testament to the company’s growth potential and financial robustness.

Spotlighting Top Green Energy Stocks with Strong FII Support

1 – Suzlon Energy

Suzlon Energy, a prominent player in the global renewable energy sector, offers a wide array of services covering the design, manufacturing, installation, and maintenance of wind turbines and associated renewable energy components. Established in 1995 by Late Shri Tulsi R. Tanti in collaboration with Sudwind Energy, Germany, the company has expanded its operations to span across 17 countries, boasting an impressive portfolio of over 12,700 wind turbine generators (WTGs) with a cumulative capacity of 20.1 gigawatts.

Asia and North America stand out as Suzlon’s primary markets, accounting for 75% and 14% of total installation capacity, respectively, underscoring its significant global footprint. With dedicated research and development centers strategically located in Germany, the Netherlands, Denmark, and India, alongside 14 cutting-edge manufacturing facilities in India, Suzlon Energy is equipped to drive innovation and excellence in the renewable energy space.

The company’s clientele spans both public and private sectors, featuring renowned names such as GAIL, ONGC, IPCL, ACC, Bajaj, Hero, and ITC, among others. Despite experiencing a 9% decline in revenue, recording Rs. 5947 crore in FY23 compared to Rs. 6520 crore in FY22, Suzlon Energy witnessed a remarkable turnaround in net profits. From a loss of Rs. 176 crore in FY22, the company surged to a substantial profit of Rs. 2887 crore in FY23, signaling its resilience and potential for growth in the renewable energy sector.

2: Tata Power

Tata Power (TPCL) stands tall as one of India’s foremost hydroelectric power producers and an integrated power conglomerate. Originating in 1910 as the Tata Hydroelectric Power Supply Company, it merged with the Andhra Valley Power Supply Company in 1916, laying the foundation for its illustrious journey.

With an impressive installed capacity of 14.11 gigawatts (GW), Tata Power’s diverse portfolio encompasses thermal (62.79%), solar (21.23%), hydro (6.24%), wind (6.61%), and waste heat recovery (3.14%) segments. Notably, the company boasts a robust order book of 1.2 GW in solar and 1.4 GW in the hybrid category, underscoring its commitment to renewable energy solutions.

Expanding its footprint beyond Indian borders, Tata Power operates hydro plants in Bhutan, Georgia, and Zambia, along with a thermal plant in Indonesia, aggregating a capacity of 487 megawatts (MW). Engaged primarily in power generation, transmission, and distribution activities, the company leverages both renewable and non-renewable sources to meet the nation’s energy needs.

In its pursuit of next-generation power solutions, TPCL offers an array of services, including solar rooftop engineering, procurement, and construction (EPC), electric vehicle (EV) charging infrastructure, home automation, and energy management solutions. With Tata Power Solar System Ltd, a wholly-owned subsidiary, boasting an order book exceeding 4 GW in large projects, the company remains at the forefront of solar innovation.

Demonstrating its commitment to rural electrification, Tata Power has spearheaded microgrid installations in villages across Uttar Pradesh and Bihar. As of March 2023, over 196 microgrids illuminate the lives of 20,000 rural consumers, showcasing the company’s impactful endeavors.

In fiscal year 2023, Tata Power reported a gross revenue of Rs. 55,1009 crore, representing a notable 29% increase from Rs. 42,816 crore in FY22. Impressively, net profits surged by an astounding 77%, soaring from Rs. 2156 crore in FY22 to Rs. 3810 crore in FY23. Noteworthy is the remarkable 65% surge in profits from joint venture or associate companies, accounting for 59% of the company’s total profit before taxes. With foreign investors holding a 9.86% stake in the company as of December 2023, Tata Power continues to attract global attention and investment.

3 – JSW Energy

Further augmenting its portfolio, JSW Energy successfully commissioned its Baspa plant nestled in the Himalayan regions, capable of generating 300 MW of power. Marking a significant milestone, the company unveiled its inaugural solar power project, the Vijayanagar Solar Power Plant, adjacent to the JSW Steel’s Vijayanagar plant, boasting a robust generating capacity of 225 MW.

In a strategic move, a JSW Energy subsidiary acquired renewable energy assets totaling 1.75 GW from Mytrah Energy (India) in FY23. This acquisition encompasses 10 Wind Special Purpose Vehicles (SPVs) and 7 Solar SPVs, underpinned by long-term Power Purchase Agreement (PPA) contracts spanning an average of 18 years.

Despite deriving 47% of its energy from coal-powered thermal sources, JSW Energy is steadfast in its commitment to achieving carbon neutrality by 2050. With ambitious expansion plans in sight, the company aims to ramp up its installed capacity to 10 GW by 2025, further scaling to 20 GW by 2030.

In fiscal year 2023, JSW Energy reported robust revenue from operations, totaling Rs. 10,332 crore, marking a notable 27% increase from Rs. 8,167 crore in FY22. However, net profits witnessed a 15% decline, slipping from Rs. 1,743 crore in FY22 to Rs. 1,480 crore in FY23, primarily attributed to a significant surge in fuel costs compared to the preceding fiscal year.

As of December 2023, foreign investors held an 8.5% stake in JSW Energy, with GQG Partners commanding a notable 1.39% ownership interest in the company.

In Summary

Investing in green energy stocks with strong FII backing presents investors with a compelling opportunity to align financial objectives with environmental sustainability goals.

By identifying companies driving renewable energy innovation and supported with robust international investor backing, investors can position themselves for sustained growth and contribute to a greener, more resilient future. Embrace the potential of green energy investments today and embark on a journey towards sustainable prosperity.

Disclaimer: The opinions shared by experts on this website is solely their own and do not represent the views of the website or its management. We strongly recommend users consult certified experts before making any investment choices.

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