Adani Green Energy stock has jumped 45% this year to become more valuable than L&T, Maruti Suzuki, and Axis Bank
- Adani Green Energy is very well positioned to leverage the currency wave of renewable energy buzz in the country.
- The company’s shares have jumped 18% in the last five days and 45% in the last one month.
- Expectations of higher fund allocation to this sector in the budget is another reason for the rally in the stock.
AdvertisementThe renewable energy space has been one solid bet for investment in the last one year as the Indian government is working aggressively towards adding renewable energy capacity and becoming a net zero country by 2070.
Indian Prime Minister Narendra Modi’s speech in Glasgow, at the COP26 Summit in October 2021, had mentioned a target of achieving 500 gigawatts of installed power capacity from non-fossil sources by 2030 and becoming net zero by 2070.
As a result, shares of the Adani Group company, Adani Green Energy, and several other renewable energy stocks have been on an upward trend. Adani Green has a mix of solar, wind and hybrid power projects across the country.
Moreover, there is a big expectation that there may be big bucks allocated in the budget to promote the construction of new capacity in solar, wind and hydropower projects.
“The whole green energy space is in an uptrend since India signed the Paris Agreement and Narendra Modi said India declared India is going to be carbon neutral by 2050. Moreover, the upcoming union budget is expected to provide some tax relief to the whole renewable energy sector,” Kranthi Bathini, director of equity strategy at WealthMills Securities told Business Insider.
Adani Green Energy made a profit of ₹183 crore in FY21 after making a loss in the preceding two years.
Most of the companies into renewable energy have doubled their stock price in the last one year.
|FY21||₹3,124 crore||₹183 crore|
|FY20||₹2549 crore||-₹67.96 crore|
|FY19||₹2,058 crore||-₹475.05 crore|
Governments across the world are committed to building a sustainable environment and thus the renewable energy industry is a key beneficiary of such policies.
|Companies into renewable energy||% change in last one year|
|Gita Renewable Energy||1660%|
|Websol Energy Systems||261%|
|Adani Green Energy||91%|
|Sterling and Wilson Renewable Energy||56%|
SEE ALSO: India is expected to make big budget allocation for renewable energy but Modi needs states on board to fight climate change
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