4 renewable energy actions to watch, because in 2022, the focus will be on green energy
Power of Tata:
Tata Power Solar, previously named Tata BP Solar India as part of the restructuring, is the 100% subsidiary of Tata Power. Energy demands are not fully met by non-renewable resources and, therefore, to overcome the problems of pollution and the rapid depletion of non-renewable sources, the company has made sure to meet the demands of energy. As the business is part of Tata Power, the business can be monitored, making big waves even in the electric mobility space. Over the past year and on a cumulative basis, the company has generated returns of almost 190%.
It is a small cap company providing complete wind turbine solutions. The company offers turbines in custom versions for installation in climatic conditions ranging from hot and dry deserts to wet coasts to nearly icy plains. The stock has high public participation and is priced low at around Rs 10 per share.
This is a stock that has turned into a dime since its peak in 2008. The company’s quarterly performance for the September quarter even deteriorated as net profit fell further to Rs. 237 crore. In addition, its debt on equity is in the negative zone. So, after losing to international players without orders from global players, it now remains to be seen whether the company is able to gain a foothold in the segment again.
The company has recently made a foray into the clean energy arena and surely has the potential to disrupt the segment. The company officially announced for the first time to be a net zero carbon entity at its 43rd AGM in 2020 and since then the conglomerate has been preparing in space.
The specifications of the plans were given with the announcement that the company has set Rs. 75,000 crore in spending for the segment over the next 3 years. Other projects have been the construction of solar manufacturing units, a battery factory, an electrolyzer to produce green hydrogen, etc.
The small-cap company is the country’s first and only solar glass manufacturing company. As part of the Borosil group, the company is striving to increase its capacity. The company’s new product line includes selene, shakti and solar glass with anti-fouling coating. The company also uses renewable energy investments in wind power.
On the financial side, the company has recorded good profit growth of 24.57% over the past 3 years. In addition, the company maintained an average effective operating margin of over 20%.
Another renewable energy company to focus on
The company, founded in 2011, is the country’s leading renewable energy source in terms of total electricity production capacity. In 2019, the company won the distinction of being the first renewable energy company in India and the 10th in the world to exceed 5 GW of installed capacity.
Recently, the company entered into a collaboration with L&T for green hydrogen projects. ReNew Power is supported by global investment firm Goldman Sachs. This company is not currently listed on the Indian stock exchanges.