The table below shows Small Cap Green Energy Stocks – Green Energy Stocks 2024 based on the Highest Market Capitalization & 1Y Return.
| Name | Market Cap (Cr) | Close Price (Rs) | 1Y Return (%) |
| Adani Green Energy Ltd | 253215.51 | 1598.55 | 230.2 |
| Suzlon Energy Ltd | 85291.69 | 62.5 | 129.16 |
| NHPC Ltd | 82720.86 | 82.35 | 22.82 |
| Premier Energies Ltd | 50400.6 | 1127.95 | 217.85 |
| SJVN Ltd | 43801.5 | 111.46 | 48.06 |
| Sterling and Wilson Renewable Energy Ltd | 12892 | 552.15 | -60.83 |
| Jaiprakash Power Ventures Ltd | 12329.37 | 17.99 | 12.06 |
| KPI Green Energy Ltd | 10390.57 | 791.6 | 64.27 |
| Azad Engineering Ltd | 9703.4 | 1641.5 | 165.67 |
| Ujaas Energy Ltd | 6569.26 | 616.1 | 226.84 |
Introduction to List Of Small Cap Green Energy Stocks
Adani Green Energy Ltd
Adani Green Energy Limited (AGEL), founded as a subsidiary of Adani Group, is India’s leading renewable energy company. The company specializes in developing, building, owning and operating utility-scale grid-connected solar power, wind power and hybrid projects across 91 locations in India. Under the leadership of Gautam Adani, AGEL has established itself as a major player in the renewable energy sector, selling power through long-term PPAs and merchant bases.
• Market Cap: ₹253,215.51 Cr
• Current Share Price: ₹1,598.55
• Returns: 1Y (230.20%), 1M (10.82%), 6M (1.56%)
• 5Y Average Net Profit Margin: 14.51%
• 5Y CAGR: 68.86%
• Sector: Renewable Energy
Suzlon Energy Ltd
Suzlon Energy Limited, established as a pioneering renewable energy solutions provider in India, has expanded its presence to 17 countries across Asia, Australia, Europe, Africa and the Americas. The company, known for manufacturing wind turbine generators (WTGs) and related components, offers various products including the flagship S144, S133 and S120 Wind Turbine Generators, delivering up to 43% higher generation efficiency.
• Market Cap: ₹85,291.69 Cr
• Current Share Price: ₹62.50
• Returns: 1Y (129.16%), 1M (19.75%), 6M (0.15%)
• 5Y Average Net Profit Margin: 21.76%
• 5Y CAGR: 66.52%
• Sector: Renewable Energy Equipment & Services
NHPC Ltd
NHPC Limited is India’s premier hydroelectric power generation company, primarily focused on generating and selling bulk power to various utilities. The company manages multiple hydropower stations including Salal, Dulhasti, Kishanganga and others. Currently engaged in constructing eight hydropower projects with 6434 MW capacity, NHPC also offers consultancy services for hydropower project development and management.
• Market Cap: ₹82,720.86 Cr
• Current Share Price: ₹82.35
• Returns: 1Y (22.82%), 1M (6.75%), 6M (0.90%)
• 5Y Average Net Profit Margin: 1.88%
• Dividend Yield: 2.31%
• 5Y CAGR: 60.53%
• Sector: Renewable Energy
SJVN Ltd
SJVN Limited is a prominent Indian power generation company established with a focus on hydroelectric power. The company has diversified into multiple energy sectors including thermal, wind and solar power generation. Notable projects include the 47.6 MW Khirvire Wind Power Project in Maharashtra and the 50 MW Sadla Wind Power Project in Gujarat, along with three solar projects totalling 81.3 MW capacity.
• Market Cap: ₹43,801.50 Cr
• Current Share Price: ₹111.46
• Returns: 1Y (48.06%), 1M (4.75%), 6M (1.10%)
• 5Y Average Net Profit Margin: 3.11%
• Dividend Yield: 1.61%
• 5Y CAGR: 44.94%
• Sector: Renewable Energy
Premier Energies Ltd
Premier Energies, established in 1995 and backed by GEF Capital, is an integrated solar cell and module manufacturing company. The company operates state-of-the-art facilities across three locations in Telangana, covering 44.91 acres, with an annual production capacity of 2 GW for solar cells and 3.36 GW for solar modules. Their advanced manufacturing capabilities include mono PERC cell lines achieving 23.2% efficiency.
• Market Cap: ₹50,400.60 Cr
• Current Share Price: ₹1,127.95
• Returns: 1Y (217.85%), 1M (24.87%), 6M (5.71%)
• 5Y Average Net Profit Margin: 76.38%
• 5Y CAGR: 34.30%
• Sector: Renewable Energy
Sterling and Wilson Renewable Energy Ltd
Sterling and Wilson’s foundation stems from the historic friendship between Shapoorji Mistry Sr. and Mehervan Daruvala, which evolved into a strong business partnership. Beginning in the 1920s, Daruvala’s Wilson Electric Works served as an electrical contractor to Shapoorji Pallonji Construction, collaborating on numerous significant commercial and residential projects across India.
• Market Cap: ₹12,892.00 Cr
• Current Share Price: ₹552.15
• Returns: 1Y (-60.83%), 1M (4.90%), 6M (0.30%)
• 5Y Average Net Profit Margin: 13.50%
• 5Y CAGR: 91.87%
• Sector: Renewable Energy Equipment & Services
Jaiprakash Power Ventures Ltd
Jaiprakash Power Ventures Limited specializes in thermal and hydropower generation, cement grinding and captive coal mining. The company operates several major power plants including the 400 MW Jaypee Vishnuprayag Hydro Electric Plant in Uttarakhand, the 1320 MW Jaypee Nigrie Super Thermal Power Plant in MP and the 500 MW Jaypee Bina Thermal Power Plant, along with a 2 MTPA Cement Grinding Unit.
• Market Cap: ₹12,329.37 Cr
• Current Share Price: ₹17.99
• Returns: 1Y (12.06%), 1M (10.95%), 6M (0.21%)
• 5Y Average Net Profit Margin: 1.07%
• 5Y CAGR: 29.89%
• Sector: Renewable Energy
KPI Green Energy Ltd
KPI Green Energy Limited is an Indian solar power generation company operating under the brand name Solarism. The company develops, builds, owns and maintains solar power plants as both an Independent Power Producer (IPP) and Captive Power Producer (CPP). Their operations are centred in Gujarat’s Bharuch district, with plants in Sudi, Samiyala, Tanchha and Bhimpura villages.
• Market Cap: ₹10,390.57 Cr
• Current Share Price: ₹791.60
• Returns: 1Y (64.27%), 1M (19.67%), 6M (5.55%)
• 5Y Average Net Profit Margin: 12.43%
• Dividend Yield: 0.03%
• 5Y CAGR: 171.79%
• Sector: Renewable Energy
Azad Engineering Ltd
Azad Engineering is a specialized manufacturer of highly engineered, complex components for the aerospace, defence, energy and oil & gas industries. Founded over 15 years ago, the company produces critical components for turbine engines, defence missiles and various power sectors including nuclear, hydrogen, gas and thermal power. Their precision-forged and machined components meet zero defect requirements for mission-critical applications.
• Market Cap: ₹9,703.40 Cr
• Current Share Price: ₹1,641.50
• Returns: 1Y (165.67%), 1M (18.32%), 6M (2.90%)
• 5Y Average Net Profit Margin: 15.04%
• 5Y CAGR: 142.29%
• Sector: Renewable Energy Equipment & Services
Ujaas Energy Ltd
Ujaas Energy Limited stands as a comprehensive solution provider in India’s solar power sector. Operating under the UJAAS brand, they offer diverse products including Ujaas Park, Ujaas My Site and Ujaas Home. The company provides turnkey solutions for solar power production under various mechanisms and caters to commercial organizations and residential customers with customized solar power generating systems.
• Market Cap: ₹6,569.26 Cr
• Current Share Price: ₹616.10
• Returns: 1Y (226.84%), 1M (9.97%), 6M (0.29%)
• 5Y Average Net Profit Margin: 73.70%
• 5Y CAGR: 2741.79%
• Sector: Renewable Energy
What are Green Energy Stocks?
Green energy stocks are shares of companies involved in the production, distribution, or advancement of renewable and sustainable energy sources. These include solar, wind, hydroelectric, geothermal and biomass energy companies. Green energy stocks represent businesses working to reduce reliance on fossil fuels and combat climate change.
These stocks encompass a wide range of businesses, from renewable energy generators to technology providers and component manufacturers. They may also include companies developing energy storage solutions or smart grid technologies to support the integration of renewable energy.
Investing in green energy stocks allows investors to support and potentially profit from the global transition to cleaner energy sources. As concerns about climate change grow and renewable technologies advance, these stocks have gained increasing attention from both retail and institutional investors.
Features Of Best Small Cap Green Energy Stocks
The main features of the best small-cap green energy stocks include high growth potential, innovative technologies, niche market focus, adaptability to policy changes and potential for industry disruption. These characteristics make them attractive to investors seeking exposure to the evolving green energy sector.
- High Growth Potential: Small-cap green energy stocks often have significant room for growth as they capture market share in expanding renewable energy markets.
- Innovative Technologies: Many small-cap companies in this sector focus on developing cutting-edge green energy technologies, potentially leading to breakthroughs and market leadership.
- Niche Market Focus: These companies often specialize in specific areas of green energy, allowing them to become leaders in niche markets.
- Adaptability: Smaller companies can often adapt more quickly to changes in technology or policy, potentially giving them an advantage in a rapidly evolving sector.
- Disruptive Potential: Some small-cap green energy stocks have the potential to disrupt traditional energy markets with innovative solutions or business models.
List Of Small Cap Green Energy Stocks Based on 6-Month Return
The table below shows a List Of Small Cap Green Energy Stocks Based on 6 Month Return.
| Name | Close Price (rs) | 6M Return(%) |
| Adani Green Energy Ltd | 1598.55 | 1.56 |
| Suzlon Energy Ltd | 62.5 | 0.15 |
| NHPC Ltd | 82.35 | 0.9 |
| SJVN Ltd | 111.46 | 1.1 |
| Premier Energies Ltd | 1127.95 | 5.71 |
| Sterling and Wilson Renewable Energy Ltd | 552.15 | 0.3 |
| Jaiprakash Power Ventures Ltd | 17.99 | 0.21 |
| KPI Green Energy Ltd | 791.6 | 5.55 |
| Azad Engineering Ltd | 1641.5 | 2.9 |
| Ujaas Energy Ltd | 616.1 | 0.29 |
Best Small Cap Green Energy Stocks Based on 5-Year Net Profit Margin
The table below shows the Best Small-cap Cap Green Energy Stocks Based on 5 Year Net Profit Margin.
| Name | Close Price (rs) | 5Y Avg Net Profit Margin % |
| Adani Green Energy Ltd | 1598.55 | 14.51 |
| Suzlon Energy Ltd | 62.5 | 21.76 |
| NHPC Ltd | 82.35 | 1.88 |
| SJVN Ltd | 111.46 | 3.11 |
| Premier Energies Ltd | 1127.95 | 76.38 |
| Sterling and Wilson Renewable Energy Ltd | 552.15 | 13.5 |
| Jaiprakash Power Ventures Ltd | 17.99 | 1.07 |
| KPI Green Energy Ltd | 791.6 | 12.43 |
| Azad Engineering Ltd | 1641.5 | 15.04 |
| Ujaas Energy Ltd | 616.1 | 73.7 |
Top Small Cap Green Energy Stocks Based on 1M Return
The table below shows the Top Small Cap Green Energy Stocks Based on a 1M Return.
| Name | Close Price (rs) | 1M Return (%) |
| Adani Green Energy Ltd | 1598.55 | 10.82 |
| Suzlon Energy Ltd | 62.5 | 19.75 |
| NHPC Ltd | 82.35 | 6.75 |
| SJVN Ltd | 111.46 | 4.75 |
| Premier Energies Ltd | 1127.95 | 24.87 |
| Sterling and Wilson Renewable Energy Ltd | 552.15 | 4.9 |
| Jaiprakash Power Ventures Ltd | 17.99 | 10.95 |
| KPI Green Energy Ltd | 791.6 | 19.67 |
| Azad Engineering Ltd | 1641.5 | 18.32 |
| Ujaas Energy Ltd | 616.1 | 9.97 |
High Dividend Yield Small Cap Green Energy Stocks
The table below shows High Dividend Yield Small Cap Green Energy Stocks.
| Name | Close Price (rs) | Dividend Yield (%) |
| NHPC Ltd | 82.35 | 2.31 |
| SJVN Ltd | 111.46 | 1.61 |
| KPI Green Energy Ltd | 791.6 | 0.03 |
Historical Performance of Small Cap Green Energy Stocks
The table below shows the Historical Performance of Small Cap Green Energy Stocks based on 5Y return.
| Name | Market Cap (Cr) | Close Price (rs) | 5Y CAGR % |
| Adani Green Energy Ltd | 253215.51 | 1598.55 | 68.86 |
| Suzlon Energy Ltd | 85291.69 | 62.5 | 66.52 |
| NHPC Ltd | 82720.86 | 82.35 | 60.53 |
| SJVN Ltd | 43801.5 | 111.46 | 44.94 |
| Premier Energies Ltd | 50400.6 | 1127.95 | 34.3 |
| Sterling and Wilson Renewable Energy Ltd | 12892 | 552.15 | 91.87 |
| Jaiprakash Power Ventures Ltd | 12329.37 | 17.99 | 29.89 |
| KPI Green Energy Ltd | 10390.57 | 791.6 | 171.79 |
| Azad Engineering Ltd | 9703.4 | 1641.5 | 142.29 |
| Ujaas Energy Ltd | 6569.26 | 616.1 | 2741.79 |
Green Energy vs Renewable Energy
The main difference between green and renewable energy is scope. Renewable energy includes all energy sources that replenish naturally, such as solar, wind and hydro. Green energy specifically refers to energy sources that do not emit pollutants, thus having minimal impact on the environment.
| Aspect | Green Energy | Renewable Energy |
| Definition | Energy sources that produce minimal environmental pollution. | Energy sources that naturally replenish over time. |
| Scope | Narrower focuses on environmental impact. | Broader, includes all naturally replenishing sources. |
| Examples | Solar power, wind energy and hydroelectricity (if they do not significantly alter the environment). | Solar power, wind energy, hydroelectricity, biomass and geothermal energy. |
| Environmental Impact | Minimal to no pollution or degradation. | Varies; some sources might impact the environment, such as biomass producing CO2. |
| Primary Goal | To reduce environmental harm while generating energy. | To provide sustainable energy solutions without depleting resources. |
Factors To Consider When Investing In Small Cap Green Energy Stocks
When investing in small-cap green energy stocks, consider the company’s technological innovation and competitive advantage. Evaluate their research and development efforts, as innovation is crucial in this rapidly evolving sector. Assess the company’s financial health, including revenue growth, profitability potential and cash reserves.
Examine the regulatory environment and government policies that may impact the green energy sector. Consider the company’s market position, growth strategy and potential for scaling its technology or services. It’s also important to understand the specific sub-sector of green energy the company operates in.
Look at the management team’s experience and track record in the green energy sector. Consider the company’s partnerships or contracts with larger energy or technology firms. Also, evaluate the long-term growth potential of their specific green energy technology and how well-positioned the company is to capitalize on this growth.
Types of Green Energy Stocks
The main types of green energy stocks include solar energy companies, wind power providers, hydroelectric producers and geothermal firms. Additionally, there are investments in biomass energy and companies focusing on the development and distribution of renewable energy technologies and infrastructure.
- Solar Energy Companies: These firms focus on the production and distribution of solar panels and related technologies. They design, manufacture and sell photovoltaic cells and solar power systems for residential, commercial and industrial applications.
- Wind Power Providers: Companies in this sector develop and operate wind farms to generate electricity. They are involved in the design, manufacturing and maintenance of wind turbines and other related equipment.
- Hydroelectric Producers: These entities manage and operate hydroelectric power plants. They harness the kinetic energy of flowing water to produce electricity, typically utilizing dams and river systems.
- Geothermal Firms: Specializing in harnessing the Earth’s internal heat, these companies develop geothermal power stations. They explore and utilize geothermal resources to generate renewable and sustainable energy.
- Biomass Energy Companies: These firms produce energy from organic materials, such as wood, agricultural crops and waste. They focus on converting these biomasses into biofuels like ethanol or biodiesel, or directly into electricity.
- Renewable Energy Technology and Infrastructure: This category includes companies that develop and distribute advanced technologies to support the generation and management of renewable energy. They work on innovations in energy storage, grid solutions and energy efficiency improvements.
How To Invest In Small-Cap Green Energy Stocks?
Listed below are the steps for investing in the Small Cap Green Energy Stocks:
- Research and find out the top-performing stocks in the market.
- Evaluate and assess your risk appetite and fix your financial goals.
- Shortlist the stocks based on your fundamental and technical analysis.
- Find reliable stockbrokers like Alice Blue to open a demat account.
- Invest in the shortlisted stocks and monitor them regularly.
Impact of Government Policies on Small-Cap Green Energy Stocks
Government policies have a significant impact on small-cap green energy stocks. Supportive policies like tax incentives, subsidies and renewable energy mandates can drive growth and innovation in the sector, potentially benefiting these stocks. Changes in these policies can lead to rapid shifts in market dynamics and stock performance.
Conversely, policy uncertainties or reductions in government support can pose risks to small-cap green energy companies, which may be more vulnerable to such changes than larger, more established firms. Investors should closely monitor policy developments at national and international levels to assess potential impacts on these stocks.
How Small Cap Green Energy Stocks Perform in Economic Downturns?
Small-cap green energy stocks can show mixed performance during economic downturns. Their performance may be influenced by factors such as changes in energy prices, shifts in government priorities and overall market sentiment towards risk and growth sectors.
During some downturns, green energy stocks might benefit from increased focus on sustainability and long-term environmental concerns. However, in severe economic contractions, these stocks might face challenges due to reduced investment in new energy projects or technologies. Their smaller size can make them more vulnerable to market volatility and economic uncertainties.
Advantages Of Investing In Small Cap Green Energy Stocks
The main advantages of investing in small-cap green energy stocks include high growth potential, exposure to innovative technologies, participation in the clean energy transition and potential for significant returns. These factors make them attractive for investors seeking growth opportunities in the evolving energy sector.
- High Growth Potential: Small-cap green energy companies often have substantial room for growth as they develop and commercialize new technologies or capture market share in expanding renewable energy markets.
- Innovative Technologies: Many small-cap firms in this sector are at the forefront of developing cutting-edge green energy solutions, offering the potential for breakthrough innovations and market disruption.
- Clean Energy Transition: Investing in these stocks allows participation in the global shift towards sustainable energy, aligning investments with environmental goals and potential policy support.
- Niche Market Leadership: Small-cap companies often focus on specific areas within green energy, potentially becoming leaders in niche markets with less competition from larger firms.
- Acquisition Targets: Successful small-cap green energy companies may become attractive acquisition targets for larger energy or technology firms, potentially leading to significant returns for investors.
Risks Of Investing In Small Cap Green Energy Stocks
The main risks of investing in small-cap green energy stocks include high volatility, technological uncertainties, regulatory changes, competition from larger firms and the potential for financial instability. These factors can significantly impact the performance and valuation of small-cap green energy companies.
- High Volatility: Small cap stocks, especially in emerging sectors like green energy, can experience significant price swings based on market sentiment, technological announcements, or changes in industry outlook.
- Technological Uncertainties: The green energy sector is rapidly evolving and there’s a risk that a company’s technology may become obsolete or fail to gain market acceptance.
- Regulatory Changes: Shifts in government policies related to renewable energy or environmental regulations can significantly impact the viability and profitability of small-cap green energy companies.
- Competition: Small-cap firms may face intense competition from both other startups and larger, well-established energy companies with greater resources.
- Financial Instability: Many small-cap green energy companies may not yet be profitable and could face challenges in securing funding for growth or weathering economic downturns.
Small Cap Green Energy Stocks GDP Contribution
Small-cap green energy stocks contribute to GDP through their role in innovation, job creation and the expansion of the renewable energy sector. While their individual contributions may be small, collectively they play a significant role in driving the transition to cleaner energy sources and supporting the growth of the green economy.
These companies often invest heavily in research and development, contributing to technological advancements that can have broader economic impacts. As the green energy sector expands, it creates new jobs and attracts investment, further contributing to economic growth. The success of these companies can also lead to reduced energy costs and improved energy security, indirectly benefiting the broader economy.
Who Should Invest in the Small Cap Green Energy Stocks?
Investing in small-cap green energy stocks is suitable for investors with a high-risk tolerance and a long-term investment horizon. These stocks are ideal for those who believe in the growth potential of the renewable energy sector and are willing to accept higher volatility in exchange for potentially higher returns.
Investors should have a good understanding of the green energy sector and be willing to actively monitor their investments due to the rapidly changing nature of the industry. They should also be prepared for potential losses, as small-cap stocks can be more vulnerable to market fluctuations and sector-specific risks.
Best Green Energy Stocks in India – FAQs
Green energy stocks are shares of companies involved in the production, distribution, or advancement of renewable and sustainable energy sources. This includes businesses in solar, wind, hydroelectric, geothermal and biomass energy sectors, as well as companies developing related technologies like energy storage or smart grids.
Small-cap stocks are shares of companies with a relatively small market capitalization, typically between ₹500 crore and ₹5,000 crore in India. These companies are often younger or niche businesses with high growth potential but also higher risk compared to larger, more established companies.
Top Small Cap Green Energy Stocks #1: Adani Green Energy Ltd
Top Small Cap Green Energy Stocks #2: Suzlon Energy Ltd
Top Small Cap Green Energy Stocks #3: NHPC Ltd
Top Small Cap Green Energy Stocks #4: Premier Energies Ltd
Top Small Cap Green Energy Stocks #5: SJVN Ltd
The Top Small Cap Green Energy Stocks are based on market capitalization.
The best small-cap green energy stocks based on 1-year returns are Adani Green Energy Ltd, Ujaas Energy Ltd, Premier Energies Ltd, zad Engineering Ltd, and Suzlon Energy Ltd. These companies have shown promising growth in the renewable energy sector.
Investing in small-cap green energy stocks carries higher risk due to market volatility and company-specific factors. While they offer growth potential, they can be more susceptible to market fluctuations and sector challenges. Careful research, diversification and alignment with your risk tolerance are crucial before investing.
To invest in small-cap green energy stocks, open a demat account with a broker like Alice Blue. Research companies in the sector, considering factors like technology, financials and growth prospects. You can invest directly in individual stocks or through mutual funds and ETFs focusing on small-cap green energy companies.
The green energy market leader in India can vary depending on the specific sector (solar, wind, etc.) and the metrics used. Companies like Adani Green Energy, Tata Power Renewable Energy and ReNew Power are among the significant players in India’s renewable energy market. Always verify current market positions before investing.
Green energy penny stocks are shares of smaller renewable energy companies trading at very low prices, typically under ₹10. These stocks are highly speculative and risky. Examples might include small-scale solar installers or early-stage clean technology firms. Thorough research is essential before considering such high-risk investments.
The leader in green energy globally can vary depending on the specific technology and region. Companies like Vestas (wind), First Solar (solar) and Tesla (energy storage) are prominent in their respective fields. In India, companies like Adani Green Energy and Tata Power have significant renewable energy portfolios. Market leadership can change, so current research is important.
Disclaimer: The above article is written for educational purposes and the companies’ data mentioned in the article may change with respect to time. The securities quoted are exemplary and are not recommendatory.
