Best Green Energy Stocks with High FII Holdings
Best green energy stocks with high FII holdings: The urgent need for sustainable energy solutions combined with rising temperatures has led to some of the biggest changes in the energy space. The world is unanimous in its transformation, and India in particular is committed to becoming a renewable energy powerhouse with 400 GW of green energy capacity by 2030.
To achieve this goal, large Indian companies are rushing to invest heavily to build large-scale solar and wind farms and hydropower projects. Today we’ve compiled a list of some of the companies that are either large in the renewable energy sector or are rapidly expanding their capacity for sustainable energy generation.
Best Green Energy Stocks with High FII Holdings
So, let’s learn more about these companies? Let’s find out what renewable assets they own and what their plans are for the future. We will also look for foreign institutional investors and see if they have secured a significant stake in the company.
#1 Green Energy Stock with High FII Holdings – Adani Green Energy
Adani Green Energy (AGEL) is one of India’s largest green energy companies 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 produced is supplied to central and state agencies and government-supported enterprises.
The company supplies green energy to more than a dozen states in India through 25-year long-term power purchase agreements (PPAs) with central and state government agencies. AGEL currently has a portfolio of 54 operating projects and 12 construction projects.
AGEL’s operating capacity has been growing 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 and wind. The company aims to achieve an operating capacity of 40 GW of renewable power operating on 200,000 acres of land.
These assets will be monetized through long-term power purchase agreements (PPAs) at an average tariff of Rs. 2.97 per unit. During the year, AGEL expanded its revenue from Rs. 5133 Cr in FY22 to Rs. 7792 Cr in FY23, an increase of 525 in one year. During the same period, net profit nearly doubled, increasing by 99%. 489 Cr in FY22 to Rs. 973Cr in FY23.
The company holds an 18.03% stake in FII as of December 2023. GQG Partners Emerging Markets Equity Fund& Goldman Sachs GQG Partners International Opportunity Fund They own 1.44% and 2.24% of the company’s shares, respectively.
#2 Green Energy Stock with High FII Holdings – Suzlon Energy
Suzlon Energy We are a global renewable energy solution provider. We provide services such as the design, manufacturing, installation and maintenance of wind turbines and related renewable energy components. The company was established in 1995 by the late Shri Tulsi R. Tanti through technical collaboration with Sudwind Energy of Germany.
The first construction took place in 1996. 0.27GW Wind Turbine Generator (WTG) in Gujarat. Over the years, the company has expanded its presence in more than 17 countries, building more than 12,700 WTGs with a cumulative capacity of 20.1 gigawatts. Asia and North America are Suzlon’s largest markets, accounting for 75% and 14% of total installed capacity, respectively.
Suzlon Group has its own R&D centers in Germany, the Netherlands, Denmark and India. Apart from this, the company has 14 manufacturing facilities across India and employs over 6,000 professionals. Suzlon has a broad corporate customer base in the private and public sectors. Public sector clients include GAIL, ONGC and IPCL.
Private players include ACC, Bajaj, Hero, ITC, etc. The company earned a profit of Rs. 5947 Cr in FY23, down 9% from Rs. 6520 Cr in FY22. Despite the decline in revenue, Suzlon’s net profit increased due to a loss of Rs. 176 Cr in FY22, resulting in a huge profit of Rs. 2,887Cr in FY23.
However, these profits are due to exceptional profits worth Rs. 2720 Cr will be realized in FY23. As of December 2023, the company held 17.83% stake in FII. Vanguard Group & ISHARES Group They own 2.32% and 2.5% respectively.
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#3 Green Energy Stock with High FII Stakes – Tata Power
Tata Power (TPCL) is one of India’s largest hydropower producers and an integrated power company. It was established in 1910 as Tata Hydroelectric Power Supply Company and later merged with Andhra Valley Power Supply Company in 1916.
Tata Power has an installed capacity of 14.11 GW comprising thermal power (62.79%), solar (21.23%), hydro (6.24%), wind (6.61%) and waste heat recovery (3.14%). The company also has orders for 1.2 GW in the solar segment and 1.4 GW in the hybrid category (a mix of solar and wind).
It also has hydroelectric power plants in Bhutan, Georgia and Zambia, and a thermal power plant in Indonesia with a total capacity of 487 MW. Tata Power is primarily engaged in power generation, transmission and distribution activities. The Company’s power generation activities come from a variety of sources, both renewable and non-renewable.
As part of its fast-growing next-generation power solutions, TPCL offers 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 over 4 GW of orders for large-scale projects as of March 2023.
The company has also been installing microgrids in rural villages in Uttar Pradesh and Bihar. As of March 2023, the company has installed more than 196 microgrids with a capacity of 5.88 MW, lighting the homes of 20,000 rural consumers. Tata Power earned a total revenue of Rs. 55,1009 Cr in FY23, up 29% from Rs. 42,816 Cr in FY22.
The company’s net profit grew at a remarkable pace, growing by 77% from Rs. 2156 Cr in FY22 to Rs. 3,810 Cr in FY 2023. This is due to an increase in profits of the JV or related companies of up to 65%, contributing 59% to the company’s total pre-tax profit. As of December 2023, the shareholding ratio of foreign investors is 9.86%.
#4 Green Energy Stock with High FII Holdings – JSW Energy
JSW Energy is another comprehensive power generation company with a power generation capacity of 6.67GW, including 3.15GW of thermal power, 1.39GW of hydropower, 1.4GW of wind power, and 0.6GW of solar power. The company operates the largest private sector hydroelectric power plant ever built on the Sutlej River, which was commissioned in 2011.
In addition to this, the company has commissioned the Baspa power plant, located in the highlands of the Himalayas and capable of generating 300 MW of power. On April 7, 2022, JSW commissioned its first solar power project, Vijayanagar Solar Power Plant. The plant is located near JSW Steel’s Vijayanagar plant and has a power generation capacity of 225 MW.
In FY23, JSW Energy’s subsidiaries acquired 1.75 GW of renewable energy assets, including the acquisition of 10 wind SPVs and 7 solar SPVs from Mytrah Energy (India). The purchase price was around 50,000 won. 10,530 Cr and its assets are under long-term PPA agreements with an average duration of 18 years.
Currently, the company gets 47% of its energy from coal-powered thermal energy. However, JSW Energy aims to become carbon neutral by 2050. In addition, we plan to achieve 10GW of installed capacity by 2025 and increase it to 20GW by 2030.
The company’s operating revenue was reported at Rs. 10,332 Cr in FY23, up from Rs. 8167 Cr in FY22, growing by 27% over the year. During the same period, net profit decreased by 15% to 50 billion won. 1743 Cr in FY22 to Rs. 1480Cr in FY23. The decline in profits is a result of a significant increase in fuel costs compared to FY22.
As of December 2023, foreign investors hold an 8.5% stake in JSW Energy, while GQG Partners holds a 1.39% stake in the company.
#5 Green Energy Stock with High FII Holdings – NHPC
NHPC Mini Ratna is a Category 1 public sector utility company and a leading hydroelectric power company in India. There are 24 hydropower projects in operation with a generating capacity of 7 gigawatts. During the year, the company generated more than 24.6 billion units of electricity through these projects.
The company also has more than 16 projects under construction, including solar and hydropower. These projects are expected to add 10 GW of capacity to the company’s portfolio. The company set aside Rs. 10,857 Cr as capital expenditure for executing these projects.
In FY23, the company signed an MoU to build a 100 MW floating solar power plant in Uttar Pradesh. The company’s subsidiary has also signed an agreement with the state government to develop a 10 GW ultra-large renewable energy power plant in the state of Rajasthan.
This year, sales increased by 11.64% to 50 billion won. 10,108 Cr in FY22 to Rs. 11,285 Cr. Increased power production led to a 12.79% increase in energy revenues. The plant availability factor increased from 88.19% to 88.75% in FY23.
Net profit for the year increased by 12.2% from Rs. 3774 Cr in FY22 to Rs. 4235 Cr in FY23. The business’s low operating costs allow it to maintain a high net profit margin of 38%. Despite strong net margins, the company has ROE and ROCE of just 12% and 8%, respectively. The stocks briefed above were the top five green energy stocks with high FII.
As of December 2023, the shareholding ratio of foreign investors is 7.38%.
List of other best green energy stocks with high FII holdings
The list below includes the 10 best green energy stocks, which includes High FII Holdings.
conclusion
In this article on the best green energy stocks with high FII, India’s renewable energy sector is showing rapid growth, driven by the government’s ambitious goals and policies to increase clean energy capacity. This leaves these companies well-positioned to benefit from India’s transition to renewable energy sources and reduced dependence on fossil fuels.
Its broad project portfolio, strong technical capabilities and long-term power purchase agreements make it an attractive choice for investors. With high growth potential and FIIs already investing, 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 billions of dollars of investment are needed, this sector will continue to attract attention. For investors, keeping pace with renewable leaders with strong institutional support can deliver solid returns.
Written by Nasir Hussein
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