Best Small Cap Green Energy Stocks In India – List And Financials
Small Cap Green Energy Stocks In India: The green energy industry has demonstrated enormous growth potential due to climate change challenges. Governments from all around the world have acknowledged this, leading the majority of them to promise to become carbon neutral. Governments are keen to prosper this industry and to provide ample opportunities to encourage […] The post Best Small Cap Green Energy Stocks In India – List And Financials appeared first on Trade Brains.
Small Cap Green Energy Stocks In India: The green energy industry has demonstrated enormous growth potential due to climate change challenges. Governments from all around the world have acknowledged this, leading the majority of them to promise to become carbon neutral.
Governments are keen to prosper this industry and to provide ample opportunities to encourage businesses to grow. Small-cap stocks have the potential to grow to become large-cap stocks. In this article, we will look at small cap green energy stocks in India.
Best Small Cap Green Energy Stocks In India
Industry Overview
The government set aside Rs. 19,500 crore (US$ 2.57 billion) in Budget 2023-24 for a PLI scheme to boost the production of high-efficiency solar modules. Wind Energy has an offshore target of 30 GW by 2030 with 3 potential sites identified.
This is a step in the right direction for India, which wants to achieve net zero emissions by 2070. Between 2020 and 25 MW, an additional 15,000 MW of wind-solar hybrid capacity is anticipated.
Small Cap Green Energy Stocks in India #1: Waaree Renewable Technologies
Waaree Renewable Technologies was founded in 1999. The company’s name was changed from ‘Sangam Renewables Limited’ to ‘Waaree Renewable Technologies Limited’ in July 2021. They generate power and offer consulting services. It promotes sustainable partnerships by providing green energy solutions to the industrial, institutional, and commercial sectors, as well as increasing their profitability through long-term renewable power supply.
It generates the most revenue from EPC contracts. Its projects include ground-mounted, rooftop, and floating solar. The company has completed over 10,000 projects in pumping, telecommunications, and roofing. Its clients include Adani Group, Aditya Birla Group, Bharat Petroleum, Cello, Larsen & Toubro, Mumbai Metro MMRDA, Mondelez International, NTPC, Reliance Industries Limited, and MSL.
It has an order book of 749 megawatts or more for the nine months of fiscal year 24. The company divested from its subsidiary Waacox Energy Private Limited on July 5, 2021, which helped the company reduce its debt. Waaree earned 97.27% of its revenue from operations in FY23 from EPC contracts, with the remaining 2.72% coming from power sales and this is the reason that Waaree is one of the Small Cap green Energy Stocks.
The company earned its revenue from operations at Rs. 350.95 crore in FY23 as compared to Rs. 161.49 crore in FY22, an increase of 117.31%. Net profit stood at Rs. 55.33 crore in FY23 as compared to Rs. 8.889 crore in FY22, an increase of 523.08%. The profit from the sale of a subsidiary in March 2022 contributed Rs. 7.30 crore to other income.
| Particulars | Amount | Particulars | Amount |
|---|---|---|---|
| CMP | ₹4,428.75 | Market Cap (Cr.) | ₹9,225.00 |
| EPS (TTM) | ₹50.99 | Stock P/E (TTM) | 86.86 |
| RoE (%) | 65.09% | RoCE (%) | 62.74% |
| Promoter Holding (%) | 74.46% | Total Capacity | 900+ MWp |
| Price to Book Value (TTM) | 108.34 | Net Profit Margin (%) | 15.76% |
Small Cap Green Energy Stocks in India #2: K.P.Energy
K.P.Energy was founded in 2008, is headquartered in Surat, and operates from 22 locations. They offer a wide range of services, including efficient construction and erection, seamless power evacuation, site identification, meticulous site preparation, and comprehensive operations and maintenance throughout the project’s lifecycle.
They are primarily positioned as Gujarat’s leading BOP solution provider. Additionally, the company is venturing into enhancing its power generation portfolio. KP Energy owns and operates four wind energy turbines They recently installed a 10 MWdc solar power project as part of their plan to achieve 100 MW of their power-generating assets in the IPP segment by 2025.
The company recently received orders from the Aditya Birla group for the development of an 86.1 MW wind power plant in Bhavnagar, Gujarat, as well as a 464.10 MW ISTS-connected wind energy system from NTPC REL at the Vanki and Dwarka sites.
In FY23, KP Energy earns revenue from segments such as infrastructure development (96.82%), power sales (2.26%), and operations and maintenance services (0.92%).
The company’s revenue from operations in FY23 stood at Rs. 437.82 crore as compared to Rs. 250.38 crore in FY22, an increase of 74.86%. Net profit stood at Rs. 43.90 crore in FY23 as compared to Rs. 18.26 crore in FY22, an increase of 140.36%.
| Particulars | Amount | Particulars | Amount |
|---|---|---|---|
| CMP | ₹402.95 | Market Cap (Cr.) | ₹2,687.00 |
| EPS (TTM) | ₹7.22 | Stock P/E (TTM) | 55.81 |
| RoE (%) | 35.72% | RoCE (%) | 33.30% |
| Promoter Holding (%) | 44.80% | IPP Capacity | 18.4 MW |
| Price to Book Value (TTM) | 17.76 | Net Profit Margin (%) | 10.28% |
Small Cap Green Energy Stocks in India #3: KPI Green Energy
KPI Green Energy, formerly known as KPI Global Infrastructure Limited, was incorporated in 2008. Under the ‘Solarism’ brand, they manage, own, build, develop, and maintain renewable power facilities as independent power producers (IPPs) and service providers to captive power producers (CPPs).
Pruthvi Textile recently awarded a 1.5MW solar power project under the Captive Power Producer segment to KPIG Energia Private Limited, a subsidiary. Earlier in February, the subsidiary received orders from Aether Industries for a 15MW solar power project. As of Q3FY24, the order book stood at 612+MW, with 88+MW received in the current quarter.
KPI Green Energy raised funds of Rs. 300 crore through a Qualified Institutional Placement (QIP) in Q3FY24, which included some well-known investors such as Goldman Sachs, Morgan Stanley Asia, Quant Mutual Fund, and others.
In FY23, KPI Green Energy generated 99.83% of its revenue from the sale of power and solar power plants, with the remaining 0.16% coming from the sale of plots.
The company’s revenue from operations stood at Rs. 643.78 crores in FY23 as compared to Rs. 229.94 crores in FY22, an increase of 180% shows why KPI green energy is listed in Small Cap green Energy Stocks. Net profit for the year FY23 stood at Rs. 109.62 crore as compared to Rs. 43.24 crore in FY22, an increase of 153.51%.
The cost of material consumed relative to revenue from operations increased from 39.75% in FY22 to 58.97% in FY23. Interest costs shot up 26.61% YoY to Rs. 46.76 crore in FY23 and their net debt to equity stood at 1.82 times in FY23 as compared to 2.02 times in FY22.
| Particulars | Amount | Particulars | Amount |
|---|---|---|---|
| CMP | ₹1,549.35 | Market Cap (Cr.) | ₹9,339.00 |
| EPS (TTM) | ₹24.95 | Stock P/E (TTM) | 62.1 |
| RoE (%) | 42.50% | RoCE (%) | 21.37% |
| Promoter Holding (%) | 53.08% | Total Capacity | 380+ MW |
| Price to Book Value (TTM) | 28.39 | Net Profit Margin (%) | 17.02% |
Small Cap Green Energy Stocks in India #4: MTAR Technologies
MTAR Technologies: In 1970, the business began as a partnership firm. It was converted into a private limited company at that time, and on November 11, 1999, the company was incorporated. They offer services in the areas of nuclear energy, space, and clean energy sectors. Their processes include precision machining, assembly, specialized fabrication, testing, and quality control.
They use these techniques to manufacture mission-critical precision components with tight tolerances and critical assemblies. Indian Space Research Organisations (ISRO), the Defence Research and Development Organisation (DRDO), the Indian government, and other organizations are among their clients..
As of Q3FY24, the company had Rs. 1,179 crores in its order book. Their order book is diversified across several segments: space – 11.20%, defense – 4.60%, clean energy – civil nuclear power, fuel cells, and others – 65.90%, clean energy – fuel cells, hydel and others – 13.70% and the remaining 4.60% from products & others as of December 31, 2023.
The only business segment that generates revenue for MTAR is the manufacturing of heavy and highly precise machinery, components, and equipment. India accounted for 19.96% of the revenue from exposure across all geographies in FY23, with the remaining 80.03% coming from the rest of the world.
The revenue generated by the company’s operations in FY23 increased by 78.18% to Rs. 57.37 crore from Rs. 32.20 crore in FY22. Net profits stood at Rs. 10.34 crore in FY23 as compared to Rs. 6.08 crore in FY22, an increase of 69.89%. Manufacturing costs increased in comparison to operating revenue, rising to 46.97% in FY23 from 36.10% in FY22.
| Particulars | Amount | Particulars | Amount |
|---|---|---|---|
| CMP | ₹1,943.15 | Market Cap (Cr.) | ₹5,977.00 |
| EPS (TTM) | ₹26.64 | Stock P/E (TTM) | 72.94 |
| RoE (%) | 16.67% | RoCE (%) | 21.44% |
| Promoter Holding (%) | 37.26% | Total Capacity | 1.38 MWe |
| Price to Book Value (TTM) | 9.63 | Net Profit Margin (%) | 18.02% |
Small Cap Green Energy Stocks in India #5: Orient Green Power
Orient Green Power was incorporated in 2006. It specializes in the development and operation of green energy power plants. It focuses on wind energy. The wind assets of the company account for approximately 425 MW of its total portfolio. The group has operations in India as well as internationally.
The presence in Andhra Pradesh, Gujarat, and Karnataka is growing, as is its presence in Tamil Nadu. India accounted for 93.12% of Orient Power’s operating revenue worldwide in FY23, with Croatia accounting for the remaining 6.87%. They are involved in the business of producing electricity from renewable resources and providing services.
As of December 2023, the promoter owned 29.42% of the company, while the public held 66.55%, DIIs held 2.73%, and FIIs held 1.29%. In FY23, the company’s operations were Rs. 258.31 crore, a 16.84% drop from FY22’s revenue of Rs. 310.63 crore. Net profits in FY23 were Rs. 33.33 crores, down 6.84% from Rs. 35.78 crores in FY22.
The company’s interest expense dropped to Rs. 108.24 from Rs. 121.61 crore in FY23. Their debt-to-equity ratio stood at 1.01 times.
| Particulars | Amount | Particulars | Amount |
|---|---|---|---|
| CMP | ₹25.45 | Market Cap (Cr.) | ₹2,496.00 |
| EPS (TTM) | ₹0.44 | Stock P/E (TTM) | 57.84 |
| RoE (%) | 6.70% | RoCE (%) | 8.08% |
| Promoter Holding (%) | 29.42% | Installed Capacity | 402.3 MW |
| Price to Book Value (TTM) | 3.32 | Net Profit Margin (%) | 12.90% |
Conclusion
As we conclude Small Cap Green Energy Stocks, the growth fueled by climate change has spawned a new industry within the energy sector. This sector is expected to grow in the coming years, thanks to the support of both the government and the public.
There might be more investments by various investors and companies need to take advantage of the opportunities. What are your thoughts on the potential of companies operating in the renewable industry? Let us know your views in the comments section below.
Written by Santhosh
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The post Best Small Cap Green Energy Stocks In India – List And Financials appeared first on Trade Brains.
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