How2invest

India’s energy sector is going through a paradigm shift from traditional fuel-based energy-generating capabilities to renewable energy sources like solar, hydro, and wind. With an increase in demand for power, the energy sector companies have been able to improve their overall performance as well as profitability. Moreover, they serve as great investment options for investors who wish to capitalize on the increasing demand for power as well as growth in the energy sector companies. Following is the list of top energy sector stocks that investors can choose:

1. Suzlon Energy Ltd

Suzlon Energy is a renewable energy producing company. With a strong focus on innovation and finding renewable power-generating capabilities, the company aims to improve its overall financial performance. Moreover, the Suzlon share price has increased by leaps and bounds making it a strong contender for investment among various energy stocks.

• Growth potential

Suzlon Energy has been making all the necessary efforts to improve its overall operations and investing heavily in the wind energy sector. Wind turbine manufacturing, installation, and increase in energy generating capacity are the positive aspects that investors must consider.

• Government initiative

With strong government support, the company aims to further expand its operations thereby delivering great opportunity for investors for future growth.

• Increase in operations and profitability

The company has been able to improve its overall financial performance from being in debt to generating better revenues. This serves as a sign of future growth and better management.

2. Tata Power

Tata Power is one of the largest power-generating companies in India that investors can select. With a strong market presence and traditional and renewable energy generating capabilities like solar, wind, and coal, Tata Power is considered to be one of the best companies to invest in. Moreover, analysts are bullish on the future Tata Power share price to achieve a target price of ₹530.

• Diversified operations

Tata Power offers generation, transmission, and even distribution services. With both traditional and Renewable energy generating sources, the company has been able to balance its overall risk profile and invested heavily in diversified generating segments.

• Renewable energy

With a strong focus on solar power, the company has been able to position itself as one of the largest engineering and solar energy Procurement Companies in India.

3. NTPC Ltd

With both thermal and renewable energy generating capabilities, NTPC Ltd sounds like one of the largest power producers in India. The following are the key aspects that investors must consider for investment:

• Energy sector domination

NTPC Ltd walks on a grade scale with diversification across various energy-generating capabilities like solar, and wind. Moreover, the company has taken on hydrogen and solar power energy generating projects for business growth and environmental sustainability.

4. Adani Green Energy Limited

Adani Green Energy is one of the most rapidly expanding energy-producing companies in India with a strong financial background and world-class expertise.

• Growth and expansion

Adani Green Energy Ltd through its years of planning and management has become one of the best energy companies in India with operations in solar and wind energy power projects.

• Govt backing and contracts

With support from the government and a strong portfolio of future long-term contracts and agreements, the company has been able to position itself strongly.

Investors however must take complete precautions and opt for analysis to select the best energy stock. Diversification investment can help in reducing fluctuations and get better returns on investment in the long run.