Top Solar Power Shares in India 2024: Solar Power Companies to Add to Your Watchlist

India's power sector is riding a wave of optimism in 2024. The industry is attracting significant investments in renewable projects, particularly solar and wind, buoyed by rising electricity demand and a renewed focus on clean energy.

The solar sector itself is experiencing a boom, being the single largest source of new power capacity additions consecutively in the last 7 years.

From generator manufacturers to engineering, procurement & construction (EPC) players and product manufacturers, companies across the entire value chain are seeing a surge in interest.

This excitement has been further fueled by the government's ambitious plan to equip 10 million (m) homes with rooftop solar solutions.

This initiative, combined with existing growth trends and proactive government support through policy reforms and budgetary allocations, suggests a bright future for India's solar industry.

As a result, investors are increasingly turning their attention to top Indian solar companies, anticipating favourable returns.

However, there is a wide array of companies across the value chain, well-poised to benefit.

With this in mind, we break down the value chain, highlighting key players to capitalise on the major investment megatrend of this decade.

I) Solar Power Generation: The first set of players are the solar power generators, a direct play on the extending demand for solar power in the country.

These entities, a mix of both, private and public, are the industry giants in the power generating sector. They have decades of experience in the conventional power generation and are now foraying into renewables, particularly solar.

#1 Tata Power

First on our list is Tata Power.

Tata Power has transformed into India's undisputed energy powerhouse. Its grip extends across the electricity value chain, including generation, transmission and distribution.

The company boasts an installed generation capacity of 14 GW, of which 8.8 GW is from thermal and the balance from clean energy sources such as wind (1 GW), solar (3.2 GW), and hydro.

Tata Power has set its sights on becoming the driving force behind India's clean energy future. Its commitment extends beyond expanding into the electric vehicle space, with continued significant investments in the solar segment.

This strategic focus is transforming Tata Power into a comprehensive "one-stop shop" for all things solar.

The EPC division is experiencing a surge in both revenue and profitability. The utility business is thriving as well, having secured a whopping 612 MW of orders worth Rs 28 bn in the last quarter.

The rooftop solar segment continues its impressive trajectory, with nearly 146 MW installed and 87 MW of new orders secured in the December 2023 quarter. This momentum builds upon a strong foundation - over 350 MW of rooftop solar installed in the past nine months.

The future looks even brighter with the Indian government's ambitious plan to equip 10 m houses with rooftop solar solutions.

While specific details are awaited, Tata Power anticipates a potential 30-40 GW rooftop capacity addition in the next 2-3 years.

This presents a massive opportunity, and Tata Power is well-positioned to be a major player in this burgeoning market.

To meet this anticipated demand, Tata Power is significantly expanding its solar manufacturing capabilities. Their cell line production is also on schedule, with a full capacity targeted for June-July 2024.

This expanded capacity ensures Tata Power can leverage locally produced solar modules to capitalise on government initiatives.

Tata Power Financial Snapshot (2019-23)

	2018-2019	2019-2020	2020-2021	2021-2022	2022-2023
Revenue Growth (%)	11.10%	-1.90%	11.50%	32.10%	29.20%
Operating Profit Margin (%)	23.90%	29.20%	22.80%	19.70%	16.60%
Net Profit Margin (%)	9.10%	5.90%	4.50%	6.10%	6.90%
Return on Capital Employed (%)	12.10%	10.20%	9.00%	10.10%	13.30%
Return on Equity (%)	17.20%	10.00%	7.60%	12.10%	14.90%

Data Source: Ace Equity

Between 2019-2023, the company's net sales and net profit have grown at a CAGR of 15.7% and 7.3%, respectively.

Looking ahead Tata Power has outlined a Rs 600 bn capex up until 2027, 45% of which will be deployed towards renewable energy. This will be financed via a mix of debt and internal accruals.

While the power major's balance sheet has been heavily leveraged, it has undertaken effective steps to deleverage its balance sheet, visible from a drop in debt to equity ratio from 2.19 in fiscal 2019 to 1.02 as of September 2023.

To know more about the company, check out its factsheet and latest quarterly results.

#2 Adani Green Energy

Next on our list we have Adani Green Energy.

Adani Green, one of the largest renewable companies in India, holds the largest solar power generation capacity globally.

The company boasts an operational capacity of 5,290 MW of wind energy and solar power facilities in 11 Indian states.

It builds, develops and maintains utility-scale grid-connected solar and wind farm projects, generating power through renewable sources such as solar and wind energy.

Adani Green is setting up a 2,167 MW renewable energy park, anticipated to be the largest of its kind globally. This project aligns with its ambitious vision of reaching 45 GW of operational renewable capacity by 2030.

Adani Green Energy Financial Snapshot (2019-23)

	2018-2019	2019-2020	2020-2021	2021-2022	2022-2023
Revenue Growth (%)	41.80%	35.60%	27.60%	48.60%	64.30%
Operating Profit Margin (%)	79.60%	72.30%	91.70%	77.00%	80.90%
Net Profit Margin (%)	-22.90%	-2.40%	5.80%	9.50%	12.50%
Return on Capital Employed (%)	4.70%	8.40%	10.70%	7.80%	8.50%
Return on Equity (%)	-47.30%	-7.60%	22.40%	47.70%	27.50%

Data Source: Ace Equity

Between 2019-2023, Adani's business has expanded. The company's clean energy unit saw its installed capacity more than double in the past two years, with profits riding on the expansion.

The returns, RoE and RoCE (return on capital employed), have also been stable since.

While the business has grown at a fast rate, with the sales growing at a 5-year CAGR of 43%, it comes on the back of tremendous borrowings.

Between 2019-2023, the debt has ballooned 5 times. The debt to equity in financial year 2023 was at 9.2x with a dismal interest coverage ratio of 1.4x.

However, in December 2023, the company sealed its largest project financing of US$ 1.36 billion (bn) i.e., about Rs 113 bn, in a senior debt facility.

The funds will be used towards the development of its planned renewable energy park in Gujarat.

The company added the latest project finance as part of its construction financing framework to enhance the funding pool to US$ 3 bn since the initial project financing in March 2021.

To know more about the company, check out its factsheet and latest quarterly results.

#3 Reliance

Third on the list is Reliance.

Reliance is setting up a comprehensive renewable energy ecosystem in India. The company has set an ambitious target of achieving net-zero carbon by 2035 and aims to set up a 100 GW renewable energy capacity by 2030.

It is constructing the largest integrated renewable energy manufacturing facility in the world in Jamnagar.

The company has earmarked over US$ 10 bn to build this ecosystem. This will include a mix of reliable, clean, and affordable energy solutions with hydrogen, wind, solar, fuel cells, and batteries.

Of the Rs 750 bn, Rs 600 bn will go towards constructing world-scale, state-of-the-art facilities to manufacture and integrate critical components.

The balance Rs 150 bn will go towards value-chain, partnerships, and future technologies, including upstream and downstream industries, to create a fully integrated, end-to-end renewable energy ecosystem.

Reliance will need the expertise and technology to successfully build its fully integrated renewable energy plant.

To this extent, the conglomerate has announced a wave of partnerships with REC, NexWafe, Sterling and Wilson, Stiesal, and Ambri for an estimated cost of US$ 1.2 bn.

Reliance Financial Snapshot (2019-23)

	2018-2019	2019-2020	2020-2021	2021-2022	2022-2023
Revenue Growth (%)	25.23%	-7.85%	-23.50%	57.93%	42.73%
Operating Profit Margin (%)	6.15%	3.41%	8.47%	6.78%	3.60%
Net Profit Margin (%)	2.80%	-0.33%	4.10%	3.43%	1.21%
Return on Capital Employed (%)	15.87%	-0.25%	15.78%	16.63%	8.43%
Return on Equity (%)	15.26%	-1.81%	21.00%	20.97%	8.57%

Data Source: Ace Equity

The company's sales have been growing smoothly. However, the history of profits has been patchy.

Between 2019-2023, the sales have grown at a 5-year CAGR of 15%. The returns have been admirable, reporting a 5-year average RoE and RoCE of 12.8% and 11.3%, respectively.

To know more about the company, check out its factsheet and latest quarterly results.

#4 NHPC

Fourth on our list is NHPC.

NHPC is India's premier hydroelectric generation firm, supplying bulk power to utilities across eastern, northern and north-eastern regions through long-term PPAs.

The company boasts a total capacity of 7,000 MW. As a critical provider of hydropower, NHPC fills the gap during peak demand periods when solar power falls short.

While traditionally focused on hydropower, the company is making a significant move into the solar energy sector.

In March 2024, they announced an ambitious project to construct a 1,200 MW solar power plant in Uttar Pradesh.

This project, with an investment of Rs 7.8 bn, is expected to be completed within two years.

NHPC Financial Snapshot (2019-23)

	2018-2019	2019-2020	2020-2021	2021-2022	2022-2023
Revenue Growth (%)	12.10%	9.40%	0.70%	-3.30%	11.40%
Operating Profit Margin (%)	65.80%	63.40%	66.80%	67.90%	65.90%
Net Profit Margin (%)	31.60%	33.40%	37.30%	41.30%	39.90%
Return on Capital Employed (%)	10.30%	7.90%	9.10%	6.50%	9.00%
Return on Equity (%)	9.30%	10.80%	11.20%	11.10%	11.80%

Data Source: Ace Equity

Between 2019-2023, the company reported a CAGR of its revenue and net profit of 5.9% and 11.4%, respectively. The 5-year average RoE and RoCE stand at 10.8% and 8.5%, respectively.

NHPC has a massive capex outlay for doubling the installed 7,000 MW capacity by financial year 2027. The company has guided for a capex of Rs 90-100 bn for the next 10 years.

To know more about the company, check out its financial factsheet and latest financial results.

#5 Torrent Power

Fifth on our list is Torrent Power.

Torrent Power, one of the largest private sector players in India, is an integrated power utility.

The company's interests span power generation, transmission, distribution, and the manufacturing and supply of power cables.

It boasts a generation capacity of 3,721 MW with a mix of coal-based, gas-based, and renewable power plants that use efficient technologies.

Torrent Power's exposure to solar comes from its expansion plans. Over the next three to five years, the company plans to achieve a 5 GW renewable energy portfolio through inorganic acquisitions and greenfield projects with a keen focus on distribution, renewables, and transmission.

The company has been allocated land in Gujarat, where it plans to set up 3 GW of renewable projects encompassing both solar and wind energy.

The anticipated total capital expenditure for ongoing renewable projects is estimated at around Rs 50 bn.

Out of this sum, Rs 8 bn to Rs 10 bn have already been deployed, leaving the majority of the remaining capex to be invested within the upcoming two years.

Torrent Power Financial Snapshot (2019-23)

	2018-2019	2019-2020	2020-2021	2021-2022	2022-2023
Revenue Growth (%)	13.50%	3.70%	-11.00%	18.40%	79.00%
Operating Profit Margin (%)	25.80%	27.40%	29.60%	26.80%	20.00%
Net Profit Margin (%)	6.90%	8.60%	10.60%	3.20%	8.40%
Return on Capital Employed (%)	12.20%	7.80%	12.90%	6.40%	19.00%
Return on Equity (%)	10.90%	13.10%	13.40%	4.60%	20.70%

Data Source: Ace Equity

Between 2019-2023, the business has grown at a CAGR of 17.3% and 17.9%. The RoE and RoCE has also improved up from 12.2% and 10.9% in financial 2019 to 19.9% and 20.7% in 2023.

To know more about the company, check out its financial factsheet and latest financial results.

#6 KPI Green Energy

Sixth on our list is KPI Green Energy.

KPI Green Energy is a power-generating company in Gujarat, backed by decades of invaluable experience in the renewable energy sector.

The company has a total capacity of 346 MW as of the first half of financial year 2024 and aims to reach 1,000 MW by 2030.

As a leading independent power producer (IPP), the company is a reliable supplier of renewable power through PPAs accounting for 18% of revenues as of the first half of FY24.

The balance 82% of revenues come from captive power producer (CPP) customers.

KPI Energy is a trusted player in the renewable energy sector, specialising in developing, transferring, operating, and maintaining grid-connected solar power projects.

Through the CPP model, it offers the opportunity to own solar and hybrid power projects tailored to meet their specific requirements.

Apart from this, the company, via its subsidiary, is in the business of green hydrogen & ammonia.

It specialises in providing on-site green hydrogen plants tailored to meet continuous demand, incorporating renewable energy setups at suitable locations.

KPI Green Financial Snapshot (2019-23)

	2018-2019	2019-2020	2020-2021	2021-2022	2022-2023
Revenue Growth (%)		72.10%	74.50%	122.70%	179.50%
Operating Profit Margin (%)	44.70%	46.00%	62.00%	48.00%	32.90%
Net Profit Margin (%)	25.80%	10.90%	13.90%	18.80%	17.00%
Return on Capital Employed (%)	12.00%	10.50%	16.20%	22.90%	29.70%
Return on Equity (%)	9.00%	6.50%	13.70%	32.50%	53.30%

Data Source: Ace Equity

Between 2019 and 2023, the sales and net profits have registered a CAGR of 107% and 87%, respectively. The returns have also been rangebound with the RoE and RoCE averaging at 22.3% and 18.3% over 5 years.

Looking ahead, the company will benefit largely from the Gujarat government's renewed focus on renewable energy.

In October 2023, the Gujarat government announced a new renewable energy policy for the next five years to significantly accelerate the adoption of clean energy within the state.

This includes installing renewable energy systems without limitations on capacity, opening up new opportunities for large-scale renewable energy projects.

Moreover, surplus renewable energy generated can be banked and used on a monthly basis, providing greater flexibility and cost-efficiency for energy users. All of which bodes well for KPI Energy.

To know more about the company, check out its financial factsheet and latest financial results.

II) Solar EPC Players

The following set of players in the solar power segment cater to the solar engineering, procurement and construction (EPC) segment. These companies are the masterminds behind building solar power plants.

Most of them ensure efficient and timely project completion, keeping the solar revolution on track.

This lot of solar companies have been relatively more profitable, boasting strong growth and revenues. A majority of them do both, solar EPC work and manufacture components.

#7 Waree Renewable Technologies

Seventh on our list of solar players is Waree Renewable Technologies.

Waaree Renewable Technologies is a leading player in solar EPC. Additionally, it serves as a solar developer, engaging in financing, constructing, owning and operating solar projects.

The company excels across the entire solar value chain, right from manufacturing cells/modules and solar products to executing rooftop and utility-scale solar projects.

Waaree boasts a track record of supplying over 6 gigawatts (GW) solar modules and commissioning more than 1.1GW of solar EPC projects.

As of December 2024, the company has an unexecuted order book of 749 megawatts (MW) peak (FY23 - 856 MW peak), with successfully executed orders totaling 473 MW peak in the first nine months of FY24.

In December 2023, the company inked a significant agreement which will facilitate the commercialisation solar products.

This will enable local production, scalability, and competitive deployment in India to cater to both domestic and international developers and EPC companies.

Between 2021-2023, Waaree Renewable Technologies' sales have multiplied 22 times. The company has turned the business around, reporting a profit after 3 years of continuous losses (2019-2021).

This surge in profits has helped the company trim down its total debt, strengthening the balance sheet.

The debt-to-equity ratio has come off substantially, from 5.3x in FY21 to 0.5x in FY23, helping the company expand on a strong footing.

Waaree Renewable Technologies Financial Snapshot (2019-23)

	2018-2019	2019-2020	2020-2021	2021-2022	2022-2023
Revenue Growth (%)	273.00%	-2.80%	109.20%	1001.30%	107.60%
Operating Profit Margin (%)	52.90%	36.40%	72.60%	19.70%	24.30%
Net Profit Margin (%)	-27.20%	-55.90%	-18.20%	5.50%	15.80%
Return on Capital Employed (%)	10.50%	1.70%	7.50%	26.70%	84.10%
Return on Equity (%)	-19.60%	-18.00%	-9.80%	34.10%	96.90%

Data Source: Ace Equity

Looking ahead, to meet the substantially increasing demand for solar energy, Waree plans to set up more than 1,000 centres for solar solutions throughout the country.

Their current bidding pipeline stands at an impressive 9 gigawatts, with a conversion rate ranging between 30% to 40%, providing clear visibility of future growth prospects.

To know more about the company, check out its financial factsheet and latest financial results.

#8 Gensol Engineering

Eight on our list is Gensol Engineering.

Gensol Engineering is also a premier solar EPC company. The company boasts a substantial engineering portfolio of 33,956 MW portfolio, which has cemented its position as a leading player in the industry.

It's leadership in the solar energy sector stems from its robust expertise in design engineering and its track record of success.

Apart from being an established player in the solar space, the company has diversified into an EV manufacturing facility in Pune for the development and production of electric three-wheelers and four-wheelers.

Additionally, Gensol Engineering has also forayed into the realm of green hydrogen, securing its inaugural green hydrogen project.

While this allows for multiple revenue streams and reduced reliance on a single sector, the company runs the risk of spreading itself too thinly across too many sectors or projects.

Eventually, this can lead to inefficiencies, lack of expertise in any one area and increased complexity in management. However, it's premature to pass judgment on this potential risk at present.

The company aims to spend an additional Rs 9 bn in purchasing vehicles for its EV leasing business in FY25.

While the debt to equity is very high at 2.5, the company has announced a Rs 3 bn via qualified institutional placement.

Gensol Engineering Financial Snapshot (2019-23)

	2018-2019	2019-2020	2020-2021	2021-2022	2022-2023
Revenue Growth (%)	20.90%	-0.80%	-22.60%	151.40%	144.70%
Operating Profit Margin (%)	12.50%	8.50%	10.90%	13.20%	16.00%
Net Profit Margin (%)	7.90%	2.70%	5.00%	6.90%	6.30%
Return on Capital Employed (%)	67.90%	16.20%	12.20%	22.60%	11.90%
Return on Equity (%)	67.90%	9.60%	9.20%	26.90%	19.40%

Data Source: Ace Equity

The company's leadership status is visible in the business performance reported in the past few years.

Between 2019-2023, the company reported a CAGR of its revenue and net profit of 41.6% and 36.6%, respectively. The 5-year average RoE and RoCE stand at 26.5% and 26.2%, respectively.

To know more about the company, check out its financial factsheet and latest financial results.

#9 Sterling and Wilson

Ninth on our list is Sterling and Wilson Solar.

Sterling and Wilson Solar is a global holistic solar engineering, procurement, and construction (EPC) solutions provider with a wide presence across 26 countries.

Acquired by Reliance in 2021 (40% stake), the company provides EPC services primarily for utility-scale solar power projects.

It has executed projects of more than 10 GW capacity across geographies including Australia, USA, Asia, Africa and the Middle East. International operations account for more than 80% of the total revenues.

The company's unexecuted EPC order book stood at Rs 80 bn (up 64% YoY) as of April 2024, with nearly 85% domestic EPC, indicating healthy growth in business in the coming year.

The domestic business offers wider margins and is likely to boost profits.

Sterling and Wilson Financial Snapshot (2019-23)

	2018-2019	2019-2020	2020-2021	2021-2022	2022-2023
Revenue Growth (%)	22.74%	-30.43%	-10.88%	1.04%	-59.84%
Operating Profit Margin (%)	11.16%	12.13%	-4.30%	-15.55%	-50.26%
Net Profit Margin (%)	7.75%	5.46%	-5.71%	-17.61%	-58.31%
Return on Capital Employed (%)	52.86%	24.64%	-13.69%	-66.31%	-65.41%
Return on Equity (%)	123.02%	31.66%	-33.28%	-116.29%	-345.11%

Data Source: Ace Equity

The business has reported a loss in the past few years. However, the financials of the company has begun to revive in the financial year 2024.

The business achieved a positive consolidated EBITDA in 2024 followed by PBT/PAT profitability in 4QFY24. This comes on the back of a growing contribution from the highly profitable Domestic EPC segment.

Looking ahead, the company continues to see positive momentum in the market with the continued decline in solar module prices and favourable regulatory landscape.

To know more about the company, checkk out its factsheet and latest quarterly results.

III) Solar Component Manufacturers

The last set of players are the solar component manufacturers. These companies manufacture the key components such as the solar photovoltaic modules (solar panels), solar cells etc.

While the sub-sector holds promise, the component manufacturing business have been hampered by price volatility and competition from imports.

However, earlier this month (April 2024), the Ministry of New and Renewable Energy (MNRE), announced the reimposition of the Approved List of Models and Manufacturers (ALMM), effective from 1 April 2024.

This basically meant that solar rooftop and open access projects will have to procure modules from ALMM approved manufacturers, helping them extend their business.

#10 Borosil Renewables

The tenth on our list is Borosil Renewables.

Borosil Renewables (ALMM approved) is the first and only solar glass manufacturer in India. The glass manufactured is used in photovoltaic panels.

Currently, the company enjoys a 40% market share in the domestic market (catering to over 400 customers) and exports its products to the USA, Turkey, and Europe.

India relies heavily on imports for its solar glass, with China and Malaysia being the primary sources.

This presents a unique situation for Borosil Renewables, the sole domestic manufacturer.

While they are ideally placed to benefit from India's growing solar market, their profitability has been hampered by unfairly priced imports. This comes on the back of discontinuation of anti-dumping duties in August 2022.

Borosil Renewables' recent capacity expansion in February 2023 has also played a role in the decline in profitability.

The higher interest and depreciation expenses associated with the expansion are impacting profits in the short term until the increased capacity reaches full efficiency.

Apart from this, Borosil is in the process of exploring power sourcing through a hybrid wind-solar plant.

Borosil Renewables Financial Snapshot (2019-23)

	2018-2019	2019-2020	2020-2021	2021-2022	2022-2023
Revenue Growth (%)	-32.32%	22.21%	84.76%	30.97%	6.40%
Operating Profit Margin (%)	19.29%	14.77%	40.36%	41.14%	25.66%
Net Profit Margin (%)	10.87%	0.17%	17.85%	25.74%	12.87%
Return on Capital Employed (%)	4.00%	2.00%	28.89%	27.22%	11.60%
Return on Equity (%)	4.10%	0.14%	19.17%	23.77%	10.67%

Data Source: Ace Equity

Between 2019-2023, the revenue and net profits have reported a healthy 5-year CAGR of 16.3% and 13.8%.

This comes on the back of massive capacity expansion (up 7.5 times from 2018 to 2024). The returns (RoE and RoCE) had been improving consistently until last year (2023).

Borosil Renewables is carrying a consolidated term debt of approximately Rs 5.4 bn as of December 2023. This includes Rs. 2.2 bn on borrowed by a subsidiary for capital expenditure.

To improve their financial health, the company plans to reduce its overall debt burden by prepaying some of its high-interest loans. They've announced a fundraising plan of around Rs 5 bn to achieve this.

Despite the potential benefits from the government's solar initiatives and incentive schemes, Borosil Renewables has put its expansion plans on hold.

They'll revisit this decision once there's greater clarity on import duties for solar glass and the price volatility of solar modules and glass stabilises.

To know more about the company, check out its factsheet and latest quarterly results.

#11 Insolation Energy

The eleventh on our list Insolation Energy.

Insolation Energy (ALMM approved) is a one-stop shop for all solar-related needs.

The company boasts a line-up of premium, high-efficiency solar panels, alongside top-tier batteries and PC offerings.

Additionally, it offers integrated engineering, procurement, and commissioning services (EPC), along with a suite of Original Equipment Manufacturing (OEM) services.

The solar PV modules manufactured by the company use both polycrystalline and Mono-PERC crystalline cell technology.

Presently, operating with a solar panel manufacturing capacity of 700 megawatts (MW), Insolation Energy is strategising to elevate its capacity to 1,200 MW, further solidifying its position in the market.

The company is ramping up for a massive solar power push. By 2024, it expects a 250 MW capacity hike, reaching 1,000 MW overall and targeting Rs 6.3 bn in revenue.

It's ambitions climb further: 1,200MW capacity by 2025 with Rs 10 bn revenue, plus a 600MW solar cell line.

By 2026, Insolation Energy envisions a giant 2,000 MW capacity, aiming for Rs 20 bn in revenue and 1,000 MW in sales, with it's cell unit contributing an additional 1,000 MW capacity.

Insolation Energy Financial Snapshot (2019-23)

	2018-2019	2019-2020	2020-2021	2021-2022	2022-2023
Revenue Growth (%)	26.20%	37.24%	83.27%	32.40%	20.37%
Operating Profit Margin (%)	8.96%	8.20%	7.84%	6.48%	4.98%
Net Profit Margin (%)	3.35%	3.48%	4.24%	3.22%	2.38%
Return on Capital Employed (%)	24.39%	29.41%	31.46%	27.63%	16.27%
Return on Equity (%)	52.14%	37.26%	45.38%	37.34%	17.70%

Data Source: Ace Equity

Between 2019-2023, Insolation Energy has reported a 5-year compounded annual growth (CAGR) of 38% in revenue.

This surge is driven by significant capacity (from of 50 MW in 2017 to 250 MW now) expansion and a strong brand reputation built over the years.

The returns have also been strong, with the RoE and RoCE averaging at 37.9% and 25.8%, respectively.

Insolation Energy has borrowed money to fund its massive expansion in the past decade. Its current debt to equity is 1x.

However, the company has repaid a large part of its debt since its listing in 2022.

To know more about the company, check out its financial factsheet and latest financial results.

#12 Solex Energy

Next on our list is Solex Energy.

Solex Energy (an ALMM approved manufacturer) is engaged in manufacturing solar panels, other renewable energy devices and installation of systems on EPC basis, with solar panels contributing around 95% of the revenue.

Solex Energy Financial Snapshot (2019-23)

	2018-2019	2019-2020	2020-2021	2021-2022	2022-2023
Revenue Growth (%)	47.31%	-7.34%	-42.27%	-9.52%	127.39%
Operating Profit Margin (%)	5.49%	5.59%	4.55%	3.10%	8.66%
Net Profit Margin (%)	3.34%	3.22%	2.11%	1.37%	1.68%
Return on Capital Employed (%)	34.35%	28.63%	10.93%	4.39%	11.98%
Return on Equity (%)	31.51%	22.19%	7.33%	3.37%	7.46%

Data Source: Ace Equity

Between 2019-2023, the company reported a sales 5-year CAGR of 10%. However, the net profits have been stable.

The surge in revenues comes on the back of increased order execution in both solar panels and EPC segments. The returns have been volatile, with the RoE and RoCE falling to 7.5% and 12% in the financial year 2023, respectively.

This is a big year for Solex Energy. Its new plant at Surat will finish its first year of operation.

Last year, the company spent around Rs 600 million to expand its production capacity by 600 megawatts (MW) by setting this unit.

To know more about the company, check out its financial factsheet and latest financial results.

#13 Websol Energy

The thirteenth on our list is Websol Energy.

Websol Energy is a leading manufacturer of photovoltaic monocrystalline solar cells and modules in India.

It offers a wide range of products ranging from 5 watts (W) to 220 W, catering to the demands of home, commercial and industrial institutions. With over 20 years of experience, the company is a leader in high-quality products.

In 2022, Websol underwent a major overhaul, revamping its operations by scrapping old machinery and replacing its gross block with state-of-the-art solar cell technology.

This strategic initiative aims to enhance efficiency and product quality.

As part of this transformation, Websol is commissioning more than double its previous solar energy capacity in the first phase, complemented by a nearly equivalent increase in solar module capacity. These expansions are to come online at the outset of 2024.

Websol Energy Financial Snapshot (2019-23)

	2018-2019	2019-2020	2020-2021	2021-2022	2022-2023
Revenue Growth (%)	-55.81%	140.48%	-23.51%	37.94%	-90.71%
Operating Profit Margin (%)	-10.58%	7.01%	24.79%	14.55%	-56.87%
Net Profit Margin (%)	-42.22%	2.10%	32.15%	4.54%	-137.51%
Return on Capital Employed (%)	-11.93%	-4.49%	38.17%	7.75%	-12.39%
Return on Equity (%)	-25.79%	3.31%	33.11%	5.29%	-12.37%

Data Source: Ace Equity

Websol Energy's revenue has declined, attributed to a plant shutdown for asset upgrades. However, excluding 2023, Websol's revenue has more than doubled between 2019 and 2023.

The returns have also been weak with the RoE and RoCE averaging at 3.4 and 0.7%.

The company's strong relationships with customers have been instrumental in generating recurring orders, with over 45% of clientele having been associated with Websol for over five years.

Before the planned plant shutdown, Websol Energy was operating at a capacity of 250 MW, with plans to expand it by 8 times over the next 1-2 years.

To know more about the company, check out its financial factsheet and latest financial results.

#14 Surana Solar

Fourteenth on our list is Surana Solar.

Surana Solar is engaged in the business of manufacturing solar photovoltaic modules, generation of wind and solar power energy and trading of other solar related products.

The company has two manufacturing plants in Hyderabad.

In the December 2023 quarter, the company returned to black and posted a net profit of Rs 1 m compared to a loss of Rs 15 m in the September 2023 quarter.

While still relatively small, Surana Solar stands to benefit as it makes big moves in the solar segment.

Surana Financial Snapshot (2019-23)

	2018-2019	2019-2020	2020-2021	2021-2022	2022-2023
Revenue Growth (%)	-9.31%	-5.08%	-17.04%	-9.33%	82.70%
Operating Profit Margin (%)	15.69%	18.56%	19.75%	19.47%	14.54%
Net Profit Margin (%)	2.59%	1.67%	0.72%	3.41%	5.42%
Return on Capital Employed (%)	4.23%	2.35%	2.00%	2.76%	5.70%
Return on Equity (%)	1.89%	1.10%	0.39%	1.55%	4.06%

Data Source: Ace Equity

Between 2019-2023, the company reported a sales and net profit 5-year CAGR of 3.4% and 22%, respectively.

The returns, although weak have been increasing, with the RoE and RoCE at 1.8% and 3.4% in the financial year 2023, respectively.

To know more about the company, check out its financial factsheet and latest financial results.

#15 Visaka Industries

Last on our list is Visaka Industries.

Visaka Industries is engaged in the business of manufacturing cement fibre sheets, fibre cement boards and panels, solar panels, and synthetic yarn.

The company operates in two segments: building products and synthetic Yarn. The building products segment produces asbestos sheets, solar panels, accessories used as roofing material, and non-asbestos flat sheets and sandwich panels used as interiors.

Back in 2018, Visaka launched a solar roofing product called ATUM.

This is India's first 100% green EV charging station. It is powered by ATUM Solar Roof, making it a completely sustainable alternative to existing EV charging units, which use thermal power generation, one of the primary sources of pollution.

ATUM Charge has also completed the installation of 250 universal electric vehicle charging stations in India, with 48 units in Telangana.

Visaka Industries Financial Snapshot (2020-23)

	2019-2020	2020-2021	2021-2022	2022-2023
Revenue Growth (%)		9.33%	23.44%	16.83%
Operating Profit Margin (%)	11.00%	17.62%	14.82%	9.03%
Net Profit Margin (%)	4.69%	9.65%	8.36%	3.24%
Return on Capital Employed (%)	9.71%	21.46%	20.97%	9.32%
Return on Equity (%)	9.76%	19.63%	17.48%	7.13%

Data Source: Ace Equity

Between 2021-2023, the sales and net profit have grown at a 3-year CAGR of 16.4% and 2.8%. The returns have been volatile, with the RoCE and RoE standing at 9.3% and 7.1% in the financial year 2023.

Looking ahead, the company strategically plans to expand its production capacities to align with the escalating market demands, positioning itself to play a pivotal role in the widespread adoption of solar technology.

To know more about the company, check out its financial factsheet and latest financial results.

In conclusion

The top stocks solar energy sector continues to remain a favourite amongst industrialists and investors across the world.

The high ticket investments have placed the sector, and the companies operating in it, on the fast track to growth in the coming years.

While the future seems bright, with the potential for a self-sustaining ecosystem, there's still work to be done.

The shadow of Chinese dominance lingers and we haven't reached the point of complete independence.

However, you must keep these stocks on your watchlist and be ready to act when the right opportunity comes along.

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here...