Solar Energy Penny Stocks are hard to find because not every penny become multibagger in future. Renewable energy sector now in focus because of change in policies by government.
Penny stocks or penny companies are small in size, higher risk, less volatile, chances of failure is high. Penny stocks are of two types first one is failed companies and second is new in operation.
Large cap companies failed to sustain in the market then they became penny stocks because their market cap fall. Second are small startup or new businesses they have high potential to grow at very high sales rates.
Renewable Energy Sector
Renewable energy means use of any resources with unlimited supply at constant pace. Renewable energy is energy that comes from a source that won’t cut out.
Currently renewable energy sector have 37% market share in India, while non renewable energy sector have 62% market share.
Types of Renewable Energy Sources
Solar, Wind, Hydro-power, Geothermal, Bioenergy, Ocean energy, Nuclear Energy, etc. are the main sources for renewable energy.
| Index | Energy Sources | Market Shares |
|---|---|---|
| 1 | Solar Energy | 10.61 % |
| 2 | Wind Energy | 10.59 % |
| 3 | Hydro Energy ( Both ) | 13.00 % |
| 4 | Geothermal | 0.5 % |
| 5 | Bio Energy | 5.00 % |
| 6 | Ocean Energy | 0.01 % |
| 7 | Nuclear Energy | 1.6 % |
Types of Non Renewable Energy Sources
Coal, Oil, Natural Gas, etc. are non renewable energy sources currently. Reliance industries main income source is oil. while NTPC mine coal.
| Index | Energy Sources | Market Share |
|---|---|---|
| 1 | Coal | 56 % |
| 2 | Oil | 1.0 % |
| 3 | Natural Gas | 7.0 % |
Top 3 Solar Energy Penny Stocks
Solar energy is the first and has highest contribution in renewable energy sector. Solar energy grow at 32 % CAGR rate in India.
There are many companies in the listed segment but they already at high valuation or high market share and have low growth chance.
| Index | Companies | Stock price |
|---|---|---|
| 1 | Servotech Power Systems | 120 |
| 2 | Zodiac Energy | 700 |
| 3 | Insolation Energy | 3400 |
We share you micro cap companies to higher returns and less risky. First company is Servotech Power Systems. Servotech have 60-40 % share in EV and Solar sector. Company is listed in stock market and share price traded at 120 rupees per share.
Recently company got ordered from delhi government for launching first grid connected solar powered EV charging point for cars.
Zodiac Energy is Gujarat based company. Company have 1000 Crores market cap, but stock is trading at very high PE ratio.
Zodiac Energy have manufacturing unit in Surat, Gujarat. Solar sector need high working capital to run business, that’ why they may faces cash flow problem and has high debt to equity ratio.
Net sales of zodiac energy touch 220 Crores in FY24 from 16 Crores in FY17, While net profit at 10 Crores in 2024.
Insolation Energy is in solar sector but in SME segment. SME means small business but required high investment capital. Insolation Energy stock gave 44x returns in last 5 years. Company provide solutions to businesses. they have two main business segment solar PV module and solar power conditioning unit.
