4 Indian solar stocks to invest in as analysts predict another BJP term

By:
on Apr 29, 2024
Updated: Apr 30, 2024
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  • BJP government commits to solar-powered free electricity for all.
  • These Indian solar stocks could benefit if PM Modi secures 3rd term.
  • A brief overview of what each of the four solar stocks have to offer.

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Indian solar stocks have been in focus in recent weeks after Narendra Modi – prime minister of the world’s fifth largest economy committed to free electricity to all household powered by solar panels.

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Having said that, here are the top four Indian solar stocks that could materially benefit from BJP victory in 2024 elections.

NTPC Ltd (NSE: NTPC)

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NTPC is one of the oldest and currently the largest company engaged in generation of electricity in India.

It has 51 power stations in total including 15 solar PV and another 42 joint venture power stations and subsidiaries including 16 solar PV. That positions it well to materially benefit from PM Modi’s devotion to solar-enabled free electricity for all.

NTPC aims at hitting 130 GW in installed capacity by 2032. It generated $21.16 billion in revenue last year – up significantly from $15.52 billion in 2020.

Note that NTPC shares have been in a sharp uptrend over the past 52 weeks.

JSW Energy Limited (NSE: JSWENERGY)

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JSW makes it to our list of top Indian solar stocks to buy in 2024 as it’s another name that actively participates in that space.

The $13 billion company based out of Maharashtra, India has a total capacity of about 6,677 MW – of which solar accounts for some 667 MW. That suggests significant room to grow in renewables as the Modi government executes on its commitment to solar-powered free electricity.

JSW shares may particularly be a great pick for 2024 since they offer exposure to thermal power as well. So, you’d be well positioned for as long as the transition takes.

In January, the Indian power company reported a 13% annualised growth in revenue and 28% in net profit for its third quarter.

Adani Green Energy Ltd (NSE: ADANIGREEN)

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Adani Green is a top Indian solar stock as it operates the world’s largest solar photovoltaic plant or the Kamuthi Solar Power Project.

The $34 billion company that was founded in 2015 is committed to more than doubling its solar manufacturing capacity to 10 GW over the next five to seven years from about 4 GW at writing.

Adani Green shares are attractive also because the management has executed well in bringing the firm’s debt to equity ratio down significantly from a high of 45 to just over 9.0 now.

The Indian renewable energy company grew its sales by nearly 52% last year while its net profit nearly doubled in 2023.

Borosil Renewables Ltd (NSE: BORORENEW)

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This solar panel manufacturer based out of Gujrat sits right at the heart of the solar power ecosystem in India.

Borosil Renewables is worth owning particularly because it has recently secured a majority stake in Interfloat Group – a German solar glass manufacturer. Plus, the Indian solar company has nearly doubled its glass manufacturing capacity in its homeland to 1,000 tons per day as well.

The $820 million company that employs over 700 at writing saw its sales and profit after tax grow between 17% and 18% in 2023.

Borosil shares are all the more attractive considering they’re down some 17% at present versus their year-to-date high in late January.

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