Exploring the Hidden Renewable Energy Penny Stocks in India

While the world is becoming technologically advanced, it is also becoming well-versed in social responsibility. The trend of the renewable energy penny stocks India is witnessing at the moment has risen thanks to the constant support from the government policies.

This blog highlights the top five renewable energy penny stocks and offers insight on tips to choose the right stock for you. Keep reading to join the green revolution and earn from it!

Top 5 Renewable Energy Penny Stocks

Penny stocks have low prices and small market capitalizations that can offer high returns to investors for a short period. Take a look at the following renewable energy penny stocks in India, that will make your investment journey promising.

Note: This blog is only for informational purposes; we are not SEBI registered, and we are not promoting any company or pushing you to buy stocks of a specific company; please do your research before purchasing the stocks.

1. KKV Agro Powers Limited

The first on our list of renewable energy penny stocks is KKV Agro Powers Limited, listed as KKVAPOW on NSE. It is an Indian company that dabbles in renewable power generation and is an Independent Power Producer (IPP). 

• The company can pay off any standing contingent liabilities with the cash reserves that can be witnessed from its ROCE of 13.42%.
• KKV Agro Powers Limited promises a good dividend yield, resulting in a healthy dividend payout.
• The annual net profit has been on a line of improvement for two years.

2. Zodiac Energy Limited

Zodiac Energy Limited with the sign – ZODIAC on NSE and 543416 on BSE, provides affordable and efficient solar power systems. The company provides turnkey solutions to residential rooftops, commercial and industrial rooftops and ground-mounted captive projects. Let’s talk about these renewable energy penny stocks in India:

• It has a strong momentum resulting in the stock gaining more than 20% within a month.
• With 4.69 as Earnings Per Share (EPS) it can be said that the company has a high EPS.

3. Tarini International Ltd

Tarini International Limited, listed as 538496 on BSE, possesses specialized knowledge in providing all-inclusive and tailored solutions for hydropower, distribution and transmission projects. It offers a comprehensive range of services, such as designing, trunk-basis conceptualization, commissioning and engineering. Let’s delve deeper into its stock.

• The low debt-to-equity ratio announces that the company has low liabilities 
• Even though the company has a low Piotroski score, these renewable energy penny stocks outperformed their industry fluctuations in the quarter.

4. Karma Energy Ltd

Karma Energy Limited is listed as KARMAENG on NSE and 533451 on BSE. The company generates power from renewable energy sources, such as wind. It operates wind farms in Tamil Nadu, Andhra Pradesh, and Maharashtra. 

• The last six months have observed a 54.92% rise in Karma Energy’s share price and 107.07% in the last year. 
• The ROCE has been improving for the last two years highlighting effective capital employment.

5. Agni Green Power Ltd

Agni Green Power Ltd was founded in 1995 and is listed as AGNI on NSE and 535456 on BSE. The company specializes in executing turn-key solar PV power plant projects. Its services include the design, engineering, supply, Installation and Commissioning (I&C), and maintenance of the PV system. The company for this renewable energy penny stock spent 6.82% and 15.24% of its operational revenues on interest charges and labour costs respectively in FY 22-23.

Tips to Choose the Right Stock for You

Now that you have a list of good renewable energy penny stocks, is it enough to invest? Don’t go on our word, research on your own and choose the stocks that align with your investment goals. The following tips help you dig deeper into stocks and check if it’s your match:

1. Before you start picking renewable energy penny stocks in India, be sure you are well-versed in your investment goals. Whether you’re looking for long-term wealth growth, consistent income, or a combination of the two, having well-defined goals will help drive your stock selection and overall investment strategy.
2. Gain a deeper knowledge of the renewable energy sector. Familiarize yourself with government policies and the different types of energy components like solar, wind, hydro, and biomass, among others.
3. Check the history of the renewable energy penny stocks and find out their profitability, growth, cash flow, debt levels and ratios like P/E, debt-to-equity, ROE, ROA etc.
4. Periodically assess your portfolio to ensure that it is in line with your investing objectives. The fluctuating market conditions and company performance require adjustments to keep a well-balanced and optimized portfolio.
5. Examine the company’s track record and past performance in implementing renewable energy initiatives. Examine previous project completion rates, operational efficiency, project schedules, and client satisfaction.

Wrapping Up

Investing in renewable energy penny stocks in India is an exciting opportunity as it allows you to capitalize on the company’s transition to a greener Earth. With their low market capitalizations, these stocks are highly volatile but give substantial rewards in the long run.

The top five companies discussed offer promising prospects within the renewable energy sector, driven by factors such as government support, technological advancements, and increasing environmental consciousness.

However, investors must conduct thorough due diligence, considering factors like financial health, competitive positioning, and market dynamics before making investment decisions.