Top Solar Cell & Solar Module Manufacturing Stocks to Watch Out for Ahead of Budget 2024

In a transformative stride towards sustainable energy, India is set to revolutionise its power sector through ambitious solar initiatives.

India plans to add 12 gigawatts (GW) of renewable energy through solar rooftops and commercial projects, aided by new policies. The solar rooftop initiative has earmarked Rs 750 billion (bn) to equip 10 million (m) homes with solar power.

Over 250 m households collectively have 637 GW of solar energy capacity installed on their rooftops. This signifies the potential for solar energy adoption in India and the opportunity for expanding renewable energy infrastructure.

Now, as Union Budget 2024 approaches, the big question is how it will support solar energy initiatives and impact solar stocks.

Here are 7 solar cell and solar module manufacturing stocks to watch ahead of budget 2024.

#1 Tata Power

The first on the list is Tata Power.

With over a century of expertise in the energy sector, Tata Power, founded in 1919 is a leading integrated power company.

Tata Power has 3,490 MW of solar generation capacity. It recently launched a 300 MW solar plant in Dholera, Gujarat.

Moreover, the Tata group company has developed India's biggest floating solar power project. The capacity of the project is around 101.6 MWp in Kayamkulam, Kerala.

Tata Power Renewable Energy Limited (TPREL), a subsidiary of Tata Power received a new project from Karnataka Renewable Energy Development Limited (KREDL). This project aims to build 250 MW of solar projects.

The company recently launched the "Ghar Ghar Solar" initiative in Uttar Pradesh to provide every home with clean energy through rooftop solar solutions.

The initiatives' potential benefits are reducing electricity bills, reducing carbon footprint, promoting sustainable energy, and having a reliable power supply.

The key financial metrics and performance indicators for the financial years 2023 and 2024 are as follows.

Metric (in m)	FY 2023	FY 2024
Revenue	551	614
Profit After Tax	38	42
Dividend Per Share	2	2
P/E Ratio	20.1	23.3
Gross Profit	118	123
Debt to Equity (x)	1.1	1.2
Return on Assets (%)	6.4	6.4
Return on Equity (%)	13.2	13.2

Data Source: Equitymaster

In Budget 2024 view, Tata Power could benefit from increased allocations for renewable energy projects, investments in transmission & distribution networks, and tax exemptions on such projects.

#2 Insolation Energy

Second on the list is Insolation Energy.

Insolation Energy, incorporated in 2015, is a company focused on solar energy solutions.

The company's core business is solar energy generation and specialises in Solar EPC (Engineering, Procurement, and Construction).

Insolation Energy has established itself as a leader, having successfully innovated and engineered over 500 MW+ of solar PV modules.

Among their notable projects are a 5 MW plant in Bhilwara, a 2.3 MW installation in Ujjain, and a 700 kW commercial rooftop setup also in Bhilwara.

Insolation Energy has also installed a 1 MW project in Bhadla and 2 MW under Rajasthan's RREC domestic rooftop system.

The key financial metrics and performance indicators for the financial years 2023 and 2024 are as follows.

Metric (in m)	FY 2023	FY 2024
Revenue	124.1	110.06
Profit After Tax	2.95	1.38
Dividend Per Share	0	0
P/E Ratio	3.46	1.38
Gross Profit	257.55	229.29
Debt to Equity	0.82	0.67
Return on Assets	5.9	3.01
Return on Equity	12.7	5.6

Data Source: Equitymaster

In the Interim Budget, around Rs 100 bn was allocated to Pradhan Mantri Suryodaya Yojana solar power sector for the rooftop solarisation of 10 m households.

As Insolation Energy specialises in producing high-efficiency solar panels, it is anticipated to potentially benefit from the upcoming Union Budget 2024.

#3 Alpex Solar

Third on the list is Alpex Solar.

Alpex Solar was incorporated in 2011. It manufactures solar panels for B2B, supplying companies such as Tata Power, Jackson, and Luminous.

Alpex Solar installs solar water pumps through tender contracts in Noida.

Alpex Solar has secured a major order from Jharkhand's Renewable Energy Development Agency (JREDA) to supply, install, and commission 500 solar water pumping systems.

The project by JREDA was a part of the PM-KUSUM Scheme which helped extend Alpex Solar's role in the renewable energy market.

The company plans to build a 1.2 GW greenfield facility in Mathura. Alpex Solar aims to reach 2.4 GW capacity by FY26.

Alpex Solar shares have surged over 500% since their debut in February 2024.

The key financial metrics and performance indicators for the financial years 2023 and 2024 are as follows.

Metric (in m)	FY 2023	FY 2024
Revenue	1947	1010
Profit After Tax	38	10.8
Dividend Per Share	0	0
P/E Ratio	-	-
Gross Profit	111	-
Debt to Equity	0.2	0.2
Return on Assets	7.3	12.2
Return on Equity	9.1	20.2

Data Source: Equitymaster

#4 Servotech Power Systems

Fourth on the list is Servotech Power Systems Ltd.

Servotech became a leading provider of solar solutions including solar inverters, power-backup UPS, LED lighting, and UVC disinfection productions.

The company in collaboration with National Solar Energy Federation of India (NSEFI) has inaugurated Delhi's first grid-connected solar-powered EV charging carport.

Servotech also partnered with Electra EV to develop India's first fast-charging interoperability solutions between GB/T and CCS2 protocols.

The key financial metrics and performance indicators for the financial years 2023 and 2024 are as follows.

Metric (in m)	FY 2023	FY 2024
Revenue	278.6	355.2
Profit After Tax	11.06	11.76
Dividend Per Share	0.04	0.2
P/E Ratio	-	-
Gross Profit	90	-
Debt to Equity	0.5	0.5
Return on Assets	7.3	11.8
Return on Equity	8.8	8.2

Data Source: Equitymaster

Expectations from the Union Budget are about the policies like FAME 3.0 which can benefit Servotech.

These policies aim to enhance the EV ecosystem, promote R&D, and support local manufacturing for sustainable transportation in India.

#5 Swelect Energy Systems

Fifth on the list is Swelect Energy Systems.

Swelect Energy Systems was founded in 1994 with technical expertise and state-of-the-art manufacturing facilities for solar PV modules, servo stabilizers, and solar PCUs.

The company is recognised and certified by the Bureau of Indian Standards (BIS) for its solar PV modules which include high-efficiency PERC modules.

The facility produces Solar PV Modules with power ratings of 540 / 550 / 600 Wp and above.

Furthermore, Swelect's facilities can manufacture G12, HJT, and TOPCON modules using latest solar PV technologies.

The key financial metrics and performance indicators for the financial years 2023 and 2024 are as follows.

Metric (in m)	FY 2023	FY 2024
Revenue	2457	2428
Profit After Tax	285	536
Dividend Per Share	1.2	4
P/E Ratio	19.4	21.7
Gross Profit	61.8	116.5
Debt to Equity	0.3	0.3
Return on Assets	3.9	6.3
Return on Equity	3.6	6.4

Data Source: Equitymaster

#6 Solex Energy

Sixth on the list is Solex Energy.

Solex Energy founded in 2014, is engaged in manufacturing of solar photovoltaic modules.

In late 2020, Solex announced the development of a 1.2 GW solar panel manufacturing unit in Surat.

Solex is a company, known to have broken traditional norms as to embrace Industry 4.0 and Big Data technologies. The implementation of cutting-edge technologies with solar energy drives its manufacturing capabilities.

The company has signed a Memorandum of Understanding (MoU) with GMEE to expand its production capacity. This collaboration will increase Solex Energy's current 700 MW capacity to 1.5 GW by the end of FY25.

The key financial metrics and performance indicators for the financial years 2023 and 2024 are as follows.

Metric (in m)	FY 2023	FY 2024
Revenue	719	457
Profit After Tax	27	10
Dividend Per Share	0.15	0
P/E Ratio	1.2	14
Gross Profit	19	113
Debt to Equity	0.4	2
Return on Assets	2.4	4.12
Return on Equity	7.2	18.8

Data Source: Equitymaster

Increased funding for research and development (R&D) in clean energy technologies during Union Budget 2024 announcement might support Solex Energy's initiatives towards industry 4.0.

#7 Australian Premium Solar

Last on the list is Australian Premium Solar (APS).

APS was founded in 2013 to make India the innovator of the solar sector.

The company provides innovative power solutions for various applications in residential, commercial, industrial, and utility sectors. Its product portfolio includes solar PV modules, grid tied inverter, and solar water pumps.

APS successfully made its stock market debut in January 2024 with a substantial premium of 159% over its issue price.

Here's a table showing the company's financials -

Metric (in m)	FY 2023	FY 2024
Revenue	946	758
Profit After Tax	33	31
Dividend Per Share	0	0
P/E Ratio	-	-
Gross Profit	58
Debt to Equity	0.1	0.2
Return on Assets	9.5	7.65
Return on Equity	23	12.7

Data Source: Equitymaster

Snapshot of Solar Stocks on Equitymaster Stock Screener

Here's a table of some more solar stocks on Equitymaster stock screener -

Conclusion

With increased allocations for renewable energy, infrastructure investments, and supportive policies expected, these companies are anticipated to benefit.

Overall, the industry initiatives set the stage for a transformative leap towards a sustainable and innovative future in India's solar energy landscape.

With India's ambitious goals to expand solar capacity, there will be a focus on solar stocks Budget 2024.

The policies will reflect how investments in this sector will drive market trends and investor confidence.

Happy Investing!

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...