10 Best Renewable Energy Stocks to Invest Now

• Smaller players like KPI Green and Zodiac Energy show high growth potential.

The renewable energy sector has become one of the most important areas of focus in the stock market as the world shifts toward clean and sustainable power. With governments promoting green initiatives and increasing investments in clean energy, companies in this space are showing strong growth potential.

The following ten companies represent some of the best renewable energy stocks to consider today. Their latest market data, financial metrics, and growth outlook highlight why they stand out in this evolving industry.

KPI Green Energy Ltd.

KPI Green Energy Ltd. has shown consistent growth in the renewable power generation segment. With a last traded price (LTP) of Rs. 452.00 and a market capitalization of Rs. 8,920 crore, the company is emerging as a significant mid-cap player. Its price-to-earnings (PE) ratio of 27.54 indicates a reasonably valued stock compared to some peers in the sector. Additionally, the return on equity (ROE) of 12.24% shows strong efficiency in generating returns for its shareholders. As renewable demand increases, KPI Green’s presence in solar power projects positions it well for future expansion.

Indian Renewable Energy Development Agency Ltd. (IREDA)

The .is a government-backed financial institution supporting renewable energy projects. With an LTP of Rs. 154.70 and a large market cap of Rs. 43,459 crore, it holds a strong position in financing clean energy ventures. Its PE ratio of 25.31 keeps it attractive for long-term investors, while a healthy ROE of 16.54% reflects solid profitability. As financing is a crucial part of scaling renewable projects, IREDA plays a pivotal role in shaping India’s clean energy journey, making it a highly promising stock.

Sterling and Wilson Renewable Energy Ltd.

Sterling and Wilson Renewable Energy Ltd. has been one of the recognized names in the solar engineering, procurement, and construction (EPC) space. The company’s LTP stands at Rs. 248.10, with a market capitalization of Rs. 5,794 crore.

However, the stock trades at a PE ratio of 70.25, which suggests a premium valuation. Despite this, its ROE of 8.08% shows it is steadily moving toward stronger profitability. With expertise in executing large-scale solar projects globally, Sterling and Wilson continue to attract investor attention, particularly as international demand for solar power grows.

Zodiac Energy Ltd.

Zodiac Energy Ltd. is a relatively smaller player but has been delivering steady growth. Its LTP is Rs. 396.10, and the market cap stands at Rs. 599 crore, making it a micro-cap stock with potential. The company’s PE ratio of 29.09 suggests a fair valuation compared to sector peers, while an impressive ROE of 20.68% reflects strong returns on shareholders’ equity.

The high ROE highlights the company’s efficiency and ability to generate profits, making it an attractive option for investors looking at small but promising renewable energy stocks.

Indowind Energy Ltd.

Indowind Energy Ltd. focuses mainly on wind power projects. It has a low LTP of Rs. 16.36, which makes it a penny stock but one with significant growth opportunities. Its market capitalization is Rs. 211 crore, and it trades at a PE ratio of 163.27, signaling that investors are paying a heavy premium for its potential. The ROE is just 0.45%, which shows limited profitability at present. However, with wind power gaining momentum in India’s renewable energy roadmap, Indowind may benefit from long-term policy support and project execution.

SJVN Ltd.

SJVN Ltd. is one of the well-established public sector companies in the renewable and hydro power generation space. With an LTP of Rs. 91.77 and a strong market capitalization of Rs. 36,064 crore, the company commands significant strength in the sector.

Its PE ratio of 43.63 shows that investors are optimistic about future growth, while an ROE of 5.78% highlights moderate profitability. Being a government-backed firm with a diversified renewable portfolio, SJVN is seen as a stable and secure investment option for those seeking long-term exposure to clean energy.

Inox Green Energy Services Ltd.

Inox Green Energy Services Ltd. is a part of the Inox Group and focuses on wind power services. The company’s LTP is Rs. 207.00, with a market cap of Rs. 7,597 crore.Thus, with a P/E of 381.62 and substantially high valuations, the stock poses a steep premium. The low, almost 1.00%, ROE compared to its peers also points towards some early profitability challenges faced by the company. From a long-term growth viewpoint, wind power services, along with the support of Inox Green’s parent group, might appeal to those who prefer highly speculative investment choices.

Inox Wind Ltd.

is another key player in the renewable energy sector, focusing on wind power projects. The company’s LTP is Rs. 142.70, and it has a market capitalization of Rs. 24,662 crore.

Its PE ratio of 54.75 places it in the higher valuation bracket, while an ROE of 8.88% indicates decent profitability. With increasing adoption of wind energy across India and global demand, Inox Wind is well-positioned to expand its footprint and create long-term shareholder value.

Tata Power Company Ltd.

Tata Power Company Ltd. is one of the largest and most diversified energy companies in India with a significant presence in renewable energy. The company trades at an LTP of Rs. 392.30, with a massive market capitalization of Rs. 1,25,353 crore. Its PE ratio of 31.46 is relatively moderate compared to sector peers, while the ROE of 11.07% showcases stable profitability. Tata Power has been investing heavily in solar, wind, and other green energy initiatives, making it one of the most dependable stocks in the renewable space.

JSW Energy Ltd.

JSW Energy Ltd. is another major player in India’s power sector with a growing renewable portfolio. Its LTP is Rs. 537.75, with a market capitalization of Rs. 93,986 crore, reflecting its strong market presence. The PE ratio stands at 48.02, showing that investors value its long-term prospects, while JSW’s ROE of 7.13% reflects moderate but stable returns. With continued investments in solar and wind energy projects, JSW Energy is set to strengthen its position as one of the leading clean energy companies in India.

Final Thoughts

The renewable energy sector offers immense growth opportunities as India and the world move toward cleaner power sources. Companies like Tata Power, JSW Energy, and IREDA represent large-cap stability, while KPI Green, Zodiac Energy, and Inox Wind offer strong mid-cap and small-cap growth potential. On the other hand, firms such as Indowind Energy and Inox Green Energy Services are high-risk bets with long-term possibilities.

Investing in renewable energy is not just about financial returns but also about contributing to a sustainable future. With strong policy support and rising demand for green power, these ten companies represent some of the best opportunities in the renewable energy space right now.

 

FAQs

Q1. What are the best renewable energy stocks to invest in right now?

The best renewable energy stocks include Tata Power, JSW Energy, KPI Green Energy, IREDA, and Inox Wind, along with other promising companies in the sector.

Q2. Why should investors consider renewable energy stocks?

Renewable energy stocks offer strong long-term growth potential as the world shifts toward clean energy, supported by government policies and rising demand.

Q3. Are Tata Power and JSW Energy safe investments in renewable energy?

Yes, Tata Power and JSW Energy are considered stable, large-cap companies with diversified renewable portfolios, making them relatively safer investments.

Q4. Which renewable energy stocks are high-risk but high-reward?

Companies like Indowind Energy and Inox Green Energy Services are high-risk due to low profitability but can deliver high rewards if growth accelerates.

Q5. What factors should be checked before investing in renewable energy stocks?

Key factors include market capitalization, PE ratio, return on equity (ROE), project pipeline, government policies, and overall financial health.