Best Small Cap Green Energy Stocks in India

Small-cap green energy stocks in India: The green energy industry has shown tremendous growth potential due to climate change challenges. Governments around the world have recognized this, with most governments committing to carbon neutrality.

The government is committed to providing ample opportunities to help this industry thrive and encourage business growth. Small-cap stocks have the potential to grow into large-cap stocks. In this article, we will take a look at small-cap green energy stocks in India.

Best Small Cap Green Energy Stocks in India

Industry Overview

The government has set aside Rs. ₹1950 billion (US$2.57 billion) will be allocated in the 2023-24 budget to the PLI scheme to boost production of high-efficiency solar modules. There is a target of 30 GW of offshore wind energy by 2030 and three potential sites have been identified.

This is a step in the right direction for India as it seeks to achieve net zero emissions by 2070. It is expected that 15,000 MW of wind-solar hybrid capacity will be added between 2020 and 25 MW.

small hat green India’s #1 Energy Stock: Afternoon Regeneration Techniques

Afternoon Regeneration Techniques was established in 1999 and changed its name from ‘Sangam Renewables Limited’ to ‘Waaree Renewable Technologies Limited’ in July 2021. We produce electricity and provide consulting services. We provide green energy solutions to industrial, institutional and commercial sectors and promote sustainable partnerships by increasing profitability through long-term renewable power supply.

EPC contracts generate the most revenue. The project includes ground-mounted, rooftop and floating solar power. The company has completed more than 10,000 projects in the fields of pumps, communications 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.

Over 749 megawatts are on order for nine months in fiscal 24. The company divested itself from its subsidiary Waacox Energy Private Limited on July 5, 2021, which helped reduce its debt. Waaree earned 97.27% of its revenue from FY23 operations through EPC contracts, with the remaining 2.72% coming from power sales, which is why Waaree is one of the small-cap green energy stocks.

The company earned an operating profit of Rs. 350.95 crore in FY23 compared to Rs. It increased by 117.31% to ₹161.49 crore in FY22. Net profit recorded 160 million won. 55.33 crore in FY23 compared to Rs. It increased by 523.08% to $8.889 billion in FY22. The profit from sale of subsidiaries in March 2022 is Rs. Other income: 73 million won.

small hat green India’s Energy Stock #2: KPEnergy

KPEnergy Established in 2008, it is headquartered in Surat and operates from 22 branches. They provide a wide range of services, including efficient construction and installation, seamless power evacuation, site identification, meticulous site preparation, and comprehensive operations and maintenance throughout the project life cycle.

They are primarily positioned as the leading BOP solutions provider in Gujarat. The company is also working to strengthen its power generation portfolio. KP Energy owns and operates four wind energy turbines. KP Energy recently installed a 10 MWdc solar power project as part of its plan to achieve 100 MW of generation assets in the IPP sector by 2025.

The company recently received orders from Aditya Birla group to develop an 86.1 MW wind farm at Bhavnagar in Gujarat and 464.10 MW ISTS connected wind energy system from NTPC REL at Vanki and Dwarka sites.

In FY23, KP Energy generates revenue from segments such as Infrastructure Development (96.82%), Power Sales (2.26%), and Operations and Maintenance Services (0.92%).

The company’s operating revenue in FY23 was Rs. 437.82 crore compared to Rs. It increased by 74.86% to ₹250.38 crore in FY22. Net profit recorded 160 million won. 43.90 crore in FY23 compared to Rs. It increased by 140.36% to $18.26 billion in FY22.

small hat green India’s Energy Stock #3: KPI Green Energy

KPI Green EnergyPreviously known as KPI Global Infrastructure Limited, was incorporated in 2008. Under the ‘Solarism’ brand, it manages, owns, builds, develops and maintains renewable power facilities as a service provider to independent power producers (IPPs) and captive power producers (CPPs).

Pruthvi Textile recently awarded a 1.5 MW solar power project to its subsidiary KPIG Energia Private Limited for its Captive Power Producer division. In early February, the subsidiary received an order for a 15 MW solar power project from Aether Industries. As of the third quarter of fiscal 2024, orders stood at 612+ MW, with over 88 MW received this quarter.

KPI Green Energy has raised funding of Rs. It invested $300 million in the third quarter of 2024 through Qualified Institutional Placement (QIP), which includes renowned investors such as Goldman Sachs, Morgan Stanley Asia, Quant Mutual Fund, etc.

In FY23, KPI Green Energy generated 99.83% of its revenue from the sale of power and solar plants, with the remaining 0.16% from land sales.

The operating revenue of the company was Rs. 643.78 crores in FY23 compared to Rs. 229.94 crores in FY22, an increase of 180% shows why KPI Green Energy is listed among the small cap green energy stocks. Net profit in 2023 was 50 billion won. 109.62 crore compared to Rs. It increased by 153.51% to $43.24 billion in FY22.

Cost of materials consumed as a percentage of operating revenue increased from 39.75% in FY22 to 58.97% in FY23. Interest expenses increased by 26.61% compared to the same period last year, reaching KRW 10 billion. Net debt was 1.82x in FY23 compared to $46.76 billion in FY23 and 2.02x in FY22.

small hat green India’s Energy Stock #4: MTAR Technologies

MTAR technology: We started our business as a partnership in 1970. At that time, it was converted into a private limited company, and on November 11, 1999, the company was converted into a corporation. They provide services in the nuclear, space and clean energy sectors. These processes include precision machining, assembly, special fabrication, testing and quality control.

They use these technologies to manufacture critical precision components with tight tolerances and critical assemblies. Customers include Indian Space Research Organization (ISRO), Defense Research and Development Organization (DRDO), Government of India and other organizations.

As of Q3 2024, the company’s revenue is Rs. The order book has ₹1,179 crores. Their order book is diverse across several sectors: Space – 11.20%, Defense – 4.60%, Clean Energy – Civil Nuclear, Fuel Cells, etc. – 65.90%, Clean Energy – Fuel Cells, Hydel and Others – 13.70% and the remainder by 12 in 2023. Products and others are 4.60% as of the 31st of the month.

MTAR’s only revenue-generating business segment is the manufacturing of heavy, high-precision machinery, parts and equipment. India accounted for 19.96% of the revenue from exposure across all geographies in FY23, with the remaining 80.03% coming from globally.

The revenue generated from the company’s operations in FY23 increased by 78.18% to Rs. 57.37 crore from Rs. 32.2 billion in FY22. Net profit recorded 140 million won. 10.34 crore in FY23 compared to Rs. It increased by 69.89% to $6.08 billion in FY22. Manufacturing costs as a percentage of operating revenue increased from 36.10% in FY22 to 46.97% in FY23.

small hat green India’s Energy Stock #5: Orient Green Power

Orient Green Power Founded in 2006, we are a company specializing in the development and operation of green energy power plants. The focus is on wind energy. The company’s wind assets account for approximately 425 MW of its overall portfolio. The group operates internationally as well as in India.

Its presence in Andhra Pradesh, Gujarat and Karnataka is increasing as is Tamil Nadu. India accounted for 93.12% of Orient Power’s global operating revenue in FY23, with Croatia accounting for the remaining 6.87%. They are engaged in the business of generating electricity and providing services from renewable resources.

As of December 2023, the promoters hold 29.42% stake in the company, the public holds 66.55%, DIIs hold 2.73% and FIIs hold 1.29%. The company’s operating profit in 2023 was 50 billion won. 2583.1 billion, down 16.84% from FY22 revenue of Rs. 310.63 crore. Net profit in 2023 was 10 million won. It decreased by 6.84% to 33.33 billion won. In fiscal year 22, it was $35.78 billion.

The company’s interest expense was reduced to 5,000 won. 121.61 crore in FY23 from Rs 108.24. The debt ratio was 1.01 times.

conclusion

To conclude small hat green energy stocks, growth driven by climate change has given rise to new industries in the energy sector. The sector is expected to grow in the coming years thanks to government and public support.

Diverse investors can invest more, and companies should take advantage of the opportunity. What do you think about the potential for companies operating in the renewable industry? Let us know your thoughts in the comments section below.

Written by Santosh

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