The energy sector in India is growing at a rapid pace. With a shift in focus towards renewable energy sources for electricity development and rapid improvement in the transmission infrastructure, the energy sector and its various participants are going through a change that demands more attention. Investors with a long-term investment horizon aim to tap this growth in the energy sectors and are therefore on the constant lookout for energy stocks that they can select for their investment portfolio. Combining future growth potential and stability, the Top 3 energy stocks have been listed below that Investors can select for their portfolio:
1. Suzlon Energy:
Specialising in wind energy power projects, Suzlon Energy has positioned itself strongly in the renewable energy sector. The company has grown rapidly in recent years and delivered stellar returns to its investors. Moreover, with a strong push from the government for renewable energy sources for electricity development, Suzlon Energy aims to grow rapidly by investing in the government’s initiative of 500 MW renewable energy development.
The Suzlon share price, though marked by volatility, has increased by 2318.9% in the last 5 years. Moreover, the company has strong operations, a stable business model, robust future projects, and even positive financials, making it a lucrative choice for investors. The company even aims to expand rapidly and improve its financials by focusing on revenue, growth, and finding new green energy projects. With a broad vision for the future, Suzlon Energy can deliver exponential returns in the long run, i.e, 3 years.
2. NHPC
National Hydroelectric Power Corporation (NHPC) is a reliable hydroelectric power generation company. With a strong focus on renewable energy sources, i.e, hydroelectric for power generation, the company aims to further expand its operations, grow its revenue, and ensure better stability and cash flows. The company has a strong business model with the revenue from power purchase agreements serving as a major contributor.
Apart from hydroelectric energy development sources, the company is even making efforts to develop solar projects for electricity development. The company even has strong financials in terms of robust revenue, positive growth in profits and rise in operational margins. The NHPC share price has shot up by 343% in the last five years, thereby delivering exponential growth to its investors. The strong push from the government for the development of renewable energy projects and the initiative for expansion in its business prospects are positive signs that make NHPC a strong contender for the next 3 years.
Conclusion:
With careful research and analysis of the two energy stocks, investors can select the best that fits their financial preference and risk-taking appetite. While Suzlon Energy can deliver the opportunity to generate exponential returns in the next 3 years, NHPC can deliver growth and stability at the same time. Investors must opt for a thorough in-depth analysis of the two stocks. The energy sector in India is bound to grow at a rapid pace in the next 3 years, thereby making it imperative to invest in the best energy stocks for multibagger returns.
