The transition from dirty energy towards cleaner energy sources presents a big money-making opportunity for investors.
More so when you invest via penny stocks.
A quick way to earn fast returns, penny stocks can be a great way to create wealth. However, it is not as easy as it seems.
While penny stocks carry the potential to multiply your wealth ten-fold, they can also erode your entire investment value.
So, it is important to do your research. Understand the sector and analyse the company before you invest in it.
For instance, the primary risk to earnings in solar energy, one of the largest renewable energy segments, is technological uncertainty.
The rapid technological change often reshuffles the companies in the supply chain. Moreover, the inherent irrational pricing system hampers the ability to predict revenue streams and profitability.
Such knowledge can prepare you to handle the risks and swings that come with investing in penny stocks in the renewable energy sector.
A good way to start is to go through the existing players in the renewable energy sector.
You can also checkout our playlist on Renewable Energy Stocks on Equitymaster's YouTube channel.
Apr 22, 2023
The energy transition from fossil fuels towards greener, eco-friendly sources, is set to be the biggest investment theme of this decade.
Jan 30, 2023
With power consumption on the rise, these five power companies are worth keeping an eye on.
Jan 25, 2023
Power stocks have underperformed recently and are losing steam. Adani Transmission shares are down 30% in just two months.
Jan 10, 2023
As India goes through a disruptive shift in the energy landscape, check out these 4 lesser-known stocks involved in the renewables space.
Oct 11, 2022
Suzlon is going on a deleveraging spree with the recent rights issue and a Rs 28 bn refinancing from REC.
Jul 21, 2022
These power companies are rapidly expanding their capabilities to capture the growing demand for renewable energy. Find out who has a better chance.
Dec 7, 2021
Here's the list of companies pouring in the big bucks to push India's sustainable energy industry to the next level.
Apr 17, 2023
India's largest power company is planning an IPO for its green energy arm. More details inside...
Jan 25, 2023
The star performer of the Adani conglomerate has seen a downtrend in recent months. Find out why.
Jan 17, 2023
Climate change presents a mega investing opportunity in the renewable energy space for the long-term.
Oct 12, 2022
These renewable energy companies could be future multibaggers. Should you invest?
Sep 27, 2022
As these megatrends become mainstream over time, investors finding the right opportunity will create massive wealth for themselves.
Jun 10, 2022
These renewable energy companies will continue to maintain their leadership position as they bag more projects.
Jul 17, 2021
You need to pay immediate attention to this exciting sector.
Based on marketcap, these are the top renewable energy companies in India:
You can see the full list of renewable energy stocks here.
And for a fundamental analysis of the above companies, check out Equitymaster’s Indian stock screener which has a separate screen for best renewable energy stocks in India.
Within the Renewable Energy sector, the top gainers were INOX WIND (up 2.9%) and INOX GREEN ENERGY (up 2.0%). On the other hand, ADANI GREEN ENERGY (down 0.8%) and INSOLATION ENERGY (down 0.5%) were among the top losers.
Investing in stocks requires careful analysis of financial data to find out a company's true worth. However, an easier way to find out about a company's performance is to look at its financial ratios.
Two commonly used financial ratios used in the valuation of stocks are -
Price to Earnings Ratio (P/E) - It compares the company's stock price with its earnings per share. The higher the P/E ratio, the more expensive the stock.
Price to Book Value Ratio (P/BV) - It compares a firm's market capitalization to its book value. A high P/BV indicates markets believe the company's assets to be undervalued and vice versa.
To know more about the energy sector's past and ongoing performance, have a look at the performance of the NIFTY energy Index and BSE energy Index.
Penny stocks are shares of listed companies priced below Rs 100. In the US market, these stocks trade for less than a dollar i.e. for pennies. Hence the name.
Penny stocks have the potential for above-average returns. However, they are extremely risky. Therefore, investing in them requires care and caution.
You can see the list of Indian penny stocks and how they are performing here...