4 High-Growth Green Energy Stocks with Net Profit CAGR up to 107% to Watch Now
4 High-Growth Green Energy Stocks : The global shift towards sustainable energy is accelerating, making green energy stocks an attractive investment opportunity. As governments and corporations prioritize renewable energy to combat climate change, companies in this sector are witnessing significant growth. Notably, four green energy stocks have shown remarkable net profit compound annual growth rates (CAGR) of up to 107% from FY21 to FY24. Let’s dive into the details of these high-potential stocks: JSW Energy Limited, Suzlon Energy Limited, Adani Green Energy Limited, and Premier Energies Limited.
Understanding CAGR and Its Importance in Investments
Before we explore these stocks, it’s essential to understand CAGR (Compound Annual Growth Rate). It represents the mean annual growth rate of an investment over a period longer than one year, accounting for the effect of compounding. Investors often use CAGR to evaluate the performance of individual assets or investment portfolios, as it provides a more accurate picture of growth over time.
1. JSW Energy Limited
Company Overview
JSW Energy Limited, a prominent player in the power generation sector, is a part of the JSW Group. The company generates power from assets located in Karnataka, Maharashtra, Nandyal, and Salboni, emphasizing its commitment to renewable energy sources.
Financial Performance
- Market Cap: ₹76,377.5 crores
- Stock Performance: Increased by 0.5% to ₹469.7 on BSE during Friday’s trading session.
- Net Profit CAGR: 28% (from ₹823 crores in FY21 to ₹1,725 crores in FY24)
Financial Ratios
- Earnings Per Share (EPS): Shows a consistent upward trend, reflecting profitability.
- Price to Earnings (P/E) Ratio: Relatively moderate, suggesting potential for future growth.
- Return on Equity (ROE): Healthy, indicating effective utilization of equity capital.
Investment Potential
JSW Energy’s steady growth and strategic focus on renewable energy make it a promising long-term investment. As it continues to expand its green energy portfolio, the stock holds the potential for significant returns.
2. Suzlon Energy Limited
Company Overview
Suzlon Energy Limited is a global leader in renewable energy solutions, specializing in Wind Turbine Generators (WTG). It is vertically integrated, handling everything from manufacturing to installation and operations & maintenance.
Financial Performance
- Market Cap: ₹69,807.4 crores
- Stock Performance: Rose by 1.3% to ₹54.03 on BSE during Friday’s trading session.
- Net Profit CAGR: 85% (from ₹104 crores in FY21 to ₹660 crores in FY24)
Financial Ratios
- Debt to Equity Ratio: Improved significantly, indicating better financial health.
- Operating Profit Margin: On the rise, reflecting efficient cost management.
- Return on Assets (ROA): Enhanced asset utilization contributing to profitability.
Investment Potential
Suzlon’s robust growth in net profit and its strategic position in the global renewable energy market make it a compelling investment option. With increasing demand for wind energy, the company is poised for continued growth.
3. Adani Green Energy Limited
Company Overview
Adani Green Energy Limited is one of India’s largest renewable power companies. It operates a diversified portfolio of renewable power generation projects, primarily focusing on solar and wind energy.
Financial Performance
- Market Cap: ₹1.4 lakh crores
- Stock Performance: Increased by 1.2% to ₹924.45 on BSE during Friday’s trading session.
- Net Profit CAGR: 90% (from ₹182 crores in FY21 to ₹1,260 crores in FY24)
Financial Ratios
- Price to Book (P/B) Ratio: Slightly high, reflecting strong investor confidence.
- Debt Service Coverage Ratio (DSCR): Improved, indicating better debt management.
- Gross Profit Margin: Consistently high, showcasing effective cost control.
Investment Potential
Adani Green’s aggressive expansion strategy and its leadership in renewable power generation position it as a key player in the green energy sector. The company’s strong financial growth and strategic investments make it an attractive option for long-term investors.
4. Premier Energies Limited
Company Overview
Premier Energies Limited is a leading manufacturer of integrated solar cells and solar panels. Its product line includes monofacial and bifacial modules along with EPC and O&M solutions.
Financial Performance
- Market Cap: ₹43,369 crores
- Stock Performance: Moved up by 1.7% to ₹1,018.4 on BSE during Friday’s trading session.
- Net Profit CAGR: 107% (from ₹26 crores in FY21 to ₹231 crores in FY24)
Financial Ratios
- Return on Investment (ROI): Exceptionally high, reflecting robust profitability.
- Current Ratio: Healthy liquidity position, indicating efficient asset management.
- Net Profit Margin: Rapidly increasing, showcasing enhanced operational efficiency.
Investment Potential
Premier Energies’ remarkable CAGR of 107% is a testament to its growth potential. As the demand for solar energy solutions continues to surge, this company is well-positioned for exponential growth, making it a must-watch stock.
Conclusion: Why These Stocks Should Be on Your Radar
The green energy sector is poised for explosive growth, driven by global sustainability goals and increasing demand for renewable energy solutions. The CAGR performance of these four stocks underscores their potential as lucrative investment opportunities.
- JSW Energy offers steady growth with a diversified renewable energy portfolio.
- Suzlon Energy stands strong with its global leadership in wind energy solutions.
- Adani Green continues to lead with strategic investments and rapid expansion.
- Premier Energies showcases exceptional growth, capitalizing on the booming solar market.
Investing in these stocks aligns not only with financial growth but also with a sustainable future. With high net profit CAGR and robust financials, these companies are paving the way for the future of energy.
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.