6 Best Solar Power Stocks

In recent times, the solar power industry in particular has performed exceptionally well in the renewable energy sector. Amidst the worldwide drive for sustainable energy solutions, solar stocks have continuously produced remarkable returns, surpassing those of other market segments. In this article, we’ll explore the 6 best solar power stocks that have the potential to provide multifold returns in the coming 3–4 years.

1. Boda Engineering Limited: Best Solar Power Stocks

Boda Engineering Limited is a leading provider of engineering, procurement, construction, and operations and maintenance services in the telecom and solar energy industries. The company recently received a ₹20.36 crore order from SOPS Energy Private Limited and an additional ₹34 crore order. With a strong order book and growing profits, this small-cap company is well-positioned to deliver excellent returns in the future. The promoters hold a 63.3% stake in the company, and FIIs have increased their stake from 0.01% to 0.48%, indicating their confidence in the stock.

2. KP Energy Limited

KP Energy Limited is a high-growth company that provides high-quality wind turbine generator turnkey solutions for wind farm projects and other segments. The company has received a 3,685 MW wind power project order from Adani Renewable and various other orders, positioning it for strong performance in the coming years. Over the past 5 years, the stock has delivered an impressive 1,039% return, and in the last year, it has surged by over 500%. With a market cap of ₹2,356 crore and a P/E ratio of 48, the stock is worth considering, but it’s advisable to invest a smaller amount initially and gradually increase your position as the stock continues to perform well.

3. Ren Power Limited

Ren Power Limited is a leading integrated power utility company in India. The company recently received a 306 MW solar project order in Maharashtra worth ₹1,540 crore and previously received a 100 MW renewable power project order from SECI for ₹700 crore. With a strong order book and promoter holding of 21.62%, along with significant FII and government ownership, Ren Power is a well-established and financially robust company. The stock has more than doubled in the past year, and while it’s currently trading close to its 52-week high, it’s worth considering for long-term investment if you can get it at a reasonable price or on a breakout.

4. KPR Energy Limited: 6 Best Solar Power Stocks

KPR Energy Limited is an excellent company that develops, maintains, and operates solar and hybrid power plants through an independent power producer model. The company recently received a 50 MW wind-solar hybrid power project order from GUVNL and has a strong order book from various other projects. With a market cap of ₹8,758 crore and a P/E ratio of 58 (lower than the industry average), the stock has delivered massive returns of over 6,000% in the last 5 years and 400% in the past year. While the stock has corrected from its 52-week high, it still has significant potential for further growth, and you can consider investing a portion of your portfolio in this stock.

5. SWELECT Energy Systems Limited

SWELECT Energy Systems Limited is a company that has been in business since 2012, providing wind power operation and maintenance services. Last month, the company received a 1,500 MW wind energy order from CESC, in addition to other major orders from NTPC. With a strong order book and the potential for excellent growth in the coming 3–4 years, this stock has the ability to deliver exceptional returns. While the stock is relatively new, having listed less than 2 years ago, it has already provided 94% returns in 1.4 years and 182% in the past year. The stock is currently consolidating and available at a good support level, making it a suitable investment option with limited exposure.

Conclusion

The renewable energy sector, particularly the solar power industry, presents a compelling investment opportunity. The six stocks highlighted in this article—Boda Engineering, KP Energy, Ren Power, KPR Energy, and SWELECT Energy Systems—have demonstrated strong growth potential and the ability to deliver significant returns to investors. By carefully evaluating these stocks and diversifying your portfolio, you can capitalize on the promising future of the solar power industry.

FAQ: 6 Best Solar Power Stocks

1. What are the key factors driving the growth of the solar power industry?
   The global push for clean energy solutions, government policies and incentives, and the declining cost of solar technology are the primary drivers of the solar power industry’s growth. As the world transitions towards sustainable energy sources, the demand for solar power is expected to continue increasing, providing significant opportunities for solar power companies.
2. How can I diversify my portfolio with solar power stocks?
   To diversify your portfolio with solar power stocks, it’s recommended to invest in a mix of large-cap, mid-cap, and small-cap companies operating in different segments of the solar power value chain, such as solar project development, manufacturing, and operations and maintenance. This can help mitigate the risks associated with any single company or sector.
3. What should I consider when evaluating solar power stocks?
   When evaluating solar power stocks, key factors to consider include the company’s order book, revenue and profit growth, management team, market share, and competitive positioning. Additionally, factors such as government policies, technological advancements, and industry trends can also impact the long-term performance of solar power stocks.