Best Green Energy Stocks With High FII Holdings – List & Insights
Best Green Energy Stocks With High FII Holdings: Rising temperatures and along with it, the desperate need for sustainable energy solutions have caused the greatest transformation by far in the energy space. The world is unanimously transitioning & especially India was striving to become a renewable energy powerhouse with a 400 GW green energy capacity […] The post Best Green Energy Stocks With High FII Holdings – List & Insights appeared first on Trade Brains.
Best Green Energy Stocks With High FII Holdings: Rising temperatures and along with it, the desperate need for sustainable energy solutions have caused the greatest transformation by far in the energy space. The world is unanimously transitioning & especially India was striving to become a renewable energy powerhouse with a 400 GW green energy capacity by 2030.
To meet this goal, Indian conglomerates are rushing in huge investments to build massive solar & wind parks, and hydroelectric projects. Today we have compiled a list of a few Companies that are either big in renewable energy or are quickly scaling up capacities towards sustainable energy generation.
Best Green Energy Stocks with High FII Holdings
So let us get to know about these Companies in greater depth. Let us understand what renewable assets they own & what are their plans for the future. We will also look out for foreign institutional investors & see if they have picked up significant stakes in the Companies.
Green Energy Stocks with High FII Holdings #1 – Adani Green Energy
Adani Green Energy (AGEL) is one of the largest green Energy companies in India, with a current project portfolio of 20.4 GW. The Company develops, builds, owns, operates, and maintains utility-scale grid-connected solar and wind farm projects. The electricity generated is supplied to central and state government entities and government-backed corporations.
The Company supplies green energy to over 12 Indian states, which is secured by Long-Term Power Purchase Agreements (PPAs) of 25 years with central and state government entities. AGEL currently has a portfolio of 54 operational projects and 12 projects under construction.
AGEL’s operational capacity has been increasing at a CAGR of 33% from 1.9 GW in FY18 to a current capacity of 8.08 GW as of FY23. In FY23, the Company produced 14.88 billion Units of power, generated across Solar & Wind. The Company aims to achieve an operational capacity of 40 GW of renewable power, operating on 2 Lakh Acres of land.
It will monetize these assets with long-term Power Purchase Agreements (PPAs) with an average tariff of Rs. 2.97 per unit. During the year, AGEL scaled its revenue from Rs. 5133 Cr in FY22 to Rs. 7792 Cr in FY23, a 525 increase in a year. Net Profits during the period nearly doubled, growing by a whopping 99% from Rs. 489 Cr in FY22 to Rs. 973 Cr in FY23.
The Company has an FII holding of 18.03% as of December 2023, with GQG Partners Emerging Markets Equity Fund& Goldman Sachs GQG Partners International Opportunities Fund owning 1.44% and 2.24% of the Company respectively.
| Particulars | Amount | Particulars | Amount |
|---|---|---|---|
| CMP | ₹1,665.95 | Market Cap (Cr.) | ₹2,71,851.00 |
| EPS | ₹5.41 | Stock P/E (TTM) | ₹165.18 |
| RoE | 18.40% | RoCE | 9.83% |
| Promoter Holding (%) | 56.37% | FII Holding (%) | 18.03% |
| Debt to Equity | 7.23 | Price to Book Value | 34.27 |
| Operating Profit Margin (%) | 64.61% | Net Profit Margin (%) | 11.27% |
Green Energy Stocks with High FII Holdings #2 – Suzlon Energy
Suzlon Energy is a global renewable energy solutions provider. It provides services like designing, manufacturing, installation, and maintenance of wind turbines and related renewable energy components. The Company was established by Late Shri Tulsi R. Tanti in 1995, in a technical collaboration with Sudwind Energy, Germany.
In 1996 it constructed its first 0.27 GW Wind Turbine Generator (WTG) in Gujarat. Over the years, the Company has expanded its presence in over 17 countries, having constructed over 12,700+ WTGs with 20.1 Gigawatt of cumulative capacity. Asia & North America are Suzlon’s biggest markets contributing to 75% & 14% of the total installation capacity respectively.
The Suzlon Group has its in-house R&D centers in Germany, the Netherlands, Denmark & India. Apart from this, the Company has 14 manufacturing facilities across India, employing over 6,000 professionals. Suzlon has a vast client base of Companies from both the private & public sectors. Public sector clients include GAIL, ONGC, IPCL, etc.
The private players include the likes of ACC, Bajaj, Hero, ITC, and a lot more. The Company earned a revenue of Rs. 5947 Cr in FY23, which dropped by 9% from Rs. 6520 Cr in FY22. Despite the drop in revenue, Suzlon’s Net Profits increased from a loss of Rs. 176 Cr in FY22 to a bumper profit of Rs. 2887 Cr in FY23.
However, these profits are due to exceptional gains worth Rs. 2720 Cr being realized in FY23. As of December 2023, the Company had an FII holding of 17.83%, with Vanguard Group & ISHARES Group owning 2.32% & 2.5% respectively.
| Particulars | Amount | Particulars | Amount |
|---|---|---|---|
| CMP | ₹48.20 | Market Cap (Cr.) | ₹61,965.00 |
| EPS | ₹2.64 | Stock P/E | 184.04 |
| RoE | 262.69% | RoCE | 20.27% |
| Promoter Holding (%) | 14.50% | FII Holding (%) | 7.84% |
| Debt to Equity | 1.73 | Price to Book Value | 18.31 |
| Operating Profit Margin (%) | 59.63% | Net Profit Margin (%) | 2.80% |
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Green Energy Stocks with High FII Holdings #3 – Tata Power
Tata Power (TPCL) is one of India’s largest hydroelectric power producers & an integrated power Company. It was founded in 1910 as Tata Hydroelectric Power Supply Company and was later merged with the Andhra Valley Power Supply Company in 1916.
Tata Power has an installed capacity of 14.11 GW, comprising thermal (62.79%), solar (21.23%), Hydro (6.24%), wind (6.61%), and waste heat recovery (3.14%). The Company also has an order book of 1.2 GW in solar and 1.4 GW in the hybrid category (A mix of Solar and wind).
It also has hydro plants in Bhutan, Georgia, and Zambia and a Thermal plant in Indonesia with an aggregate capacity of 487 MW. Tata Power is primarily engaged in the activities of Power Generation, Transmission, and Distribution. The Company’s power generation activities arise from multiple sources, both renewable and non-renewable.
As part of its fast-growing next-gen power solutions, TPCL provides solar rooftop EPC, EV charging stations, home automation, and energy management solutions. Tata Power Solar System Ltd, a wholly owned subsidiary of Tata Power has an order book of 4GW+ about large projects as of March 2023.
The Company has also been setting up microgrids in rural villages of Uttar Pradesh & Bihar. As of March 2023, the Company has installed over 196 microgrids with a capacity of 5.88 MW which lights up the houses of 20k rural consumers. Tata Power earned a Gross revenue of Rs. 55,1009 Cr in FY23, which increased by 29% from Rs. 42,816 Cr in FY22.
Net Profits of the Company increased at a spectacular rate of 77% increasing from Rs. 2156 Cr in FY22 to Rs. 3810 Cr in FY23. This was due to a ~65% increase in Profits from JV or Associate Companies, which contribute to 59% of the Company’s total Profit Before Taxes. Foreign Investors had a 9.86% shareholding in the Company as of December 2023.
| Particulars | Amount | Particulars | Amount |
|---|---|---|---|
| CMP | ₹388.85 | Market Cap (Cr.) | ₹1,08,673.00 |
| EPS | ₹8.09 | Stock P/E (TTM) | 32.05 |
| RoE | 11.85% | RoCE | 10.99% |
| Promoter Holding (%) | 46.86% | FII Holding (%) | 9.85% |
| Debt to Equity | 1.74 | Price to Book Value | 3.61 |
| Operating Profit Margin (%) | 17.81% | Net Profit Margin (%) | 6.74% |
Green Energy Stocks with High FII Holdings #4 – JSW Energy
JSW Energy is yet another integrated power Company with a power-generating capacity of 6.67 GW, out of which 3.15 GW is thermal power, 1.39 GW is hydropower, 1.4 GW is wind, and 0.6 GW is Solar power. The Company operates the largest private-sector hydropower plant that was commissioned in 2011, and built on the Sutlej River.
Apart from this, the Company also commissioned its Baspa plant which is located in the higher regions of the Himalayas and can generate 300 MW of power. On 7th April 2022, JSW commissioned its first-ever solar power project called the Vijayanagar Solar Power Plant. The plant is located near JSW Steel’s Vijayanagar plant and has a generating capacity of 225MW.
In FY23, a subsidiary of JSW Energy acquired renewable energy assets of 1.75 GW from Mytrah Energy (India), which included the acquisition of 10 Wind SPVs and 7 Solar SPVs. The purchase was made at a consideration of Rs. 10,530 Cr and the assets have long-term PPA contracts of an average of 18 Years.
Currently, the Company derives 47% of its energy from coal-powered thermal energy. However, JSW Energy aims to become carbon neutral by the year 2050. It has also planned to achieve an installed capacity of 10 GW by 2025 and to increase it to 20 GW by 2030.
The Company’s revenue from Operations was reported at Rs. 10,332 Cr in FY23, which increased from Rs. 8167 Cr in FY22, growing by 27% in a year. During the same period, Net profits dropped by 15%, from Rs. 1743 Cr in FY22 to Rs. 1480 Cr in FY23. The drop in Profits came as a result of a significant increase in Fuel costs compared to FY22.
As of December 2023, Foreign Investors had an 8.5% shareholding in JSW Energy with GQG Partners owning 1.39% of the Company.
| Particulars | Amount | Particulars | Amount |
|---|---|---|---|
| CMP | ₹491.65 | Market Cap (Cr.) | ₹79,774.00 |
| EPS | ₹9.01 | Stock P/E (TTM) | 50.11 |
| RoE | 9.57% | RoCE | 7.37% |
| Promoter Holding (%) | 72.29% | FII Holding (%) | 8.50% |
| Debt to Equity | 1.40 | Price to Book Value | 4.01 |
| Operating Profit Margin (%) | 36.23% | Net Profit Margin (%) | 13.62% |
Green Energy Stocks with High FII Holdings #5 – NHPC
NHPC is a Mini Ratna category 1 public sector utility Company, which is India’s flagship hydroelectric power generation Company. It has 24 operational hydroelectric projects with a power generating capacity of 7 Gigawatts. During the year the Company generated over 24.6 billion units of electricity from these projects.
The Company also has over 16 projects under construction, including both solar & Hydroelectric. These projects are expected to add 10 GW of capacity to the Company’s portfolio. The Company has set aside Rs. 10,857 Cr as Capital Expenditure for executing these projects.
In FY23, the Company signed an MoU to set up a 100 MW floating solar power plant in Uttar Pradesh. A subsidiary of the Company also inked a pact with the state Government to develop a 10 GW Ultra Mega Renewable Energy Power Park in the state of Rajasthan.
During the year, the Company has grown its revenue by 11.64%, from Rs. 10,108 Cr in FY22 to Rs. 11,285 Cr. Sale of Energy increased by 12.79% due to higher generation of power. Plant Availability Factor increased by 88.19% to 88.75% in FY23.
Net Profits during the year scaled by 12.2% from Rs. 3774 Cr in FY22 to Rs. 4235 Cr in FY23. Due to the low operating cost of the business, it can maintain high Net Profit margins of 38%. Despite having strong Net Profit Margins, the Company maintains ROE & ROCE of just 12% and 8% respectively. The above briefed stocks were the five best Green Energy Stocks With High FII holdings.
Foreign Investors had a 7.38% shareholding in the Company as of December 2023.
| Particulars | Amount | Particulars | Amount |
|---|---|---|---|
| CMP | ₹91.40 | Market Cap (Cr.) | ₹70,797.00 |
| EPS | ₹3.91 | Stock P/E (TTM) | 18.16 |
| RoE | 9.98% | RoCE | 6.93% |
| Promoter Holding (%) | 70.95% | FII Holding (%) | 7.38% |
| Debt to Equity | 0.77 | Price to Book Value | 1.81 |
| Operating Profit Margin (%) | 58.38% | Net Profit Margin (%) | 37.89% |
List of Other Best Green Energy Stocks with High FII Holdings
The list below puts together the 10 Best Green Energy Stocks with High FII Holdings
| Name | CMP | Mkt Cap | FII (%) |
|---|---|---|---|
| Adani Green Energy | ₹1,665.95 | ₹2,71,851.00 | 18.03% |
| Suzlon | ₹48.20 | ₹61,965.00 | 17.83% |
| Tata Power | ₹388.85 | ₹1,08,673.00 | 9.85% |
| JSW Energy | ₹491.65 | ₹79,774.00 | 8.50% |
| NHPC | ₹91.40 | ₹70,797.00 | 7.38% |
| KPI Green Energy | ₹1,989.00 | ₹7,982.00 | 5.96% |
| Inox Green energy | ₹131.00 | ₹3,844.00 | 9.20% |
| Sterling & Wilson | ₹573.00 | ₹13,365.00 | 11.90% |
| Inox Wind | ₹478.00 | ₹15,590.00 | 9.49% |
| SJVN | ₹128.00 | ₹50,128.00 | 1.68% |
Conclusion
In this article on, Best Green Energy Stocks With High FII the renewable energy sector in India is seeing rapid growth, driven by the government’s ambitious targets and policies to increase clean energy capacity. Due to this these companies are well-positioned to benefit from India’s transition towards renewable energy sources and decreasing reliance on fossil fuels.
Their extensive project portfolios, strong technical capabilities, and long-term power purchase agreements make them attractive bets for investors. With high potential for growth and FIIs already invested, these stocks are likely to remain top contenders for those looking to add green energy exposure to their portfolios.
As India works towards its climate goals and needs billions in investment, this sector will continue to gain prominence. For investors, staying abreast of the renewable leaders with heavy institutional backing can lead to solid returns.
Written by Nasir Hussain
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The post Best Green Energy Stocks With High FII Holdings – List & Insights appeared first on Trade Brains.
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