5 Undervalued Renewable Energy Stocks in India to Add to Your Watchlist

#2 NHPC

Next on the list is NHPC.

It is a Navratna public sector enterprise and one of India's leading hydropower companies, with nearly five decades of experience in the sector.

As India accelerates its clean energy transition, NHPC is expanding beyond hydropower and building a diversified renewable energy portfolio.

The company is developing solar parks, floating solar projects, pumped storage projects, and green hydrogen initiatives across multiple states.

To strengthen its renewable energy presence, NHPC has established NHPC Renewable Energy (NHPC REL), a wholly owned subsidiary focused on renewable energy, small hydro, and hydrogen-based projects.

It has also formed Bundelkhand Saur Urja Limited (BSUL), a joint venture with UPNEDA, to develop renewable energy projects in Uttar Pradesh.

In addition, NHPC has partnered with Andhra Pradesh Power Generation Corporation through the joint venture APGENCO NHPC Green Energy (ANGEL) to develop pumped storage, solar, floating solar, and wind energy projects.

The company has also been designated by the Ministry of New and Renewable Energy (MNRE) as a Renewable Energy Implementing Agency (REIA) and a Battery Energy Storage System (BESS) Implementing Agency.

From a valuation perspective, NHPC is currently trading at a P/E ratio of 19.84x, significantly below the industry average of 28.96x, according to Screener.

Going forward, NHPC plans to commission the 1,200 MW Jalaun Solar Park in Uttar Pradesh, being developed through its subsidiary Bundelkhand Saur Urja Limited (BSUL) under the Ultra Mega Renewable Energy Power Park (UMREPP) scheme. The project is expected to be commissioned by March 2028.

For more details, see the NHPC company fact sheet and quarterly results.

#3 KPI Green Energy

Next on the list is KPI Green Energy.

Founded in 2008, KPI Green Energy has emerged as a prominent player in India's renewable energy sector. The company serves as the renewable energy arm of the KP Group and is engaged in the development, ownership, and operation of renewable power projects under its 'Solarism' brand.

KPI Green Energy operates through two key business segments. Under its Independent Power Producer (IPP) model, the company develops, owns, and operates renewable energy assets, generating clean power for sale to third parties.

Through its Captive Power Producer (CPP) segment, it provides customized renewable energy solutions to commercial and industrial customers looking to reduce energy costs and meet sustainability targets.

The company offers a diversified portfolio of renewable energy solutions, including solar, wind, hybrid power projects, and Battery Energy Storage Systems (BESS). These solutions are designed to improve power reliability and address the intermittency challenges associated with standalone renewable energy generation.

The company has already established a cumulative power evacuation capacity of 3.59 GW and has built a total renewable energy portfolio of 6.26 GW, reflecting its strong growth trajectory in the clean energy sector.

From a valuation perspective, KPI Green Energy is currently trading at a P/E ratio of 16.81x, significantly below the industry average of 28.96x, according to Screener.

Going forward, KPI Green Energy is focused on expanding its renewable energy footprint, with an ambitious target of achieving 10 GW of capacity by 2030.

For more details, see the KPI GREEN ENERGY company fact sheet and quarterly results.,

#4 Waaree Energies

Next on the list is Waaree Energies.

Established in 1990 and headquartered in Mumbai, Waaree Energies is one of India's leading clean energy companies with a growing international presence.

The company entered the solar sector in 2007 and has since built a diversified business spanning solar manufacturing, EPC services, energy storage, and green hydrogen solutions.

With advanced manufacturing facilities in India and the United States, Waaree has executed more than 10,000 projects and exports its products to over 24 countries.

The company is India's largest solar PV module manufacturer and has developed a strong position in the global renewable energy market.

From a valuation perspective, Waaree Energies is currently trading at a P/E ratio of 22.3x, significantly below the industry average of 27.64x, according to Screener.

Going forward the company plans to expand its footprint across the energy value chain with an aim to capture a ~US$4 trillion (tn) opportunity by 2035

For more details, see the WAAREE ENERGIES LTD. company fact sheet and quarterly results.

#5 Waaree Renewable Technologies

Last on the list is Waaree Renewable Technologies.

Waaree Renewable Technologies (WRTL) is a leading player in India's solar EPC sector, providing end-to-end renewable energy solutions.

Headquartered in Mumbai, the company specializes in the development, construction, ownership, and operation of solar power projects.

A subsidiary of Waaree Energies, WRTL benefits from the broader group's strong presence across the renewable energy value chain.

The company delivers clean energy solutions through rooftop solar installations, ground-mounted solar projects, and open-access solar farms, catering to a diverse range of commercial and industrial customers.

With India's renewable energy capacity continuing to expand, WRTL is well-positioned to benefit from increasing demand for solar infrastructure and execution services.

From a valuation perspective, Waaree Renewable Technologies is currently trading at a P/E ratio of 21.16x, significantly below the industry average of 27.64x, according to Screener.

Going forward, the company plans to expand its project execution capabilities.

For more details, see the WAAREE RENEWABLE TECH company fact sheet and quarterly results.

Conclusion

India's renewable energy sector is entering a phase of accelerated growth, supported by strong policy backing and massive capital investments.

The country is expected to invest more than US$360 bn in renewable energy and related infrastructure by 2030, with an estimated US$190-215 bn required to achieve its target of 500 GW of renewable energy capacity.

At the COP26 Summit in Glasgow, Prime Minister Narendra Modi pledged to expand India's renewable energy capacity to 500 GW and meet 50% of the country's energy requirements through renewable sources by 2030.

As the nation moves closer to these goals, companies across the renewable energy value chain-from power generation and solar manufacturing to EPC services and energy storage-are likely to benefit from rising demand and increased investments.

Investors should evaluate the company's fundamentals, corporate governance, and valuations of the stock as key factors when conducting due diligence before making investment decisions.

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