Tata Power, Borosil Renewables, Waaree Renewable: Solar power stocks jump in trade; here is why

Solar Rooftop companies: Shares of Tata Power, Borosil Renewables, Sterling & Wilson Renewable Energy, and Websol Energy gained on Monday, March 18, as these companies, as per Zee Business report, are receiving bumper orders for the solar rooftops. In just 20 days, over a crore households have shown interest in rooftop solar installation. Till now, over 3.5 lakh applications have already been processed.

At 9:25 a.m., shares of Waaree Renewable Technologies were locked in the 5 per cent upper circuit; Websol Energy shares also hit the 5 per cent upper circuit; Indian Renewable Energy Development Agency (IREDA) shares rose over 3 per cent, Borosil Renewables was up over 1 per cent, Tata Power was up 0.88 per cent, and Sterling and Wilson Renewable Energy were up over 0.05 per cent.

The stocks have been buzzing ever since Prime Minister Narendra Modi announced the 'Pradhan Mantri Suryodaya Yojana'.

On Saturday, in an update to the move to launch a solar rooftop system, PM Modi said more than one crore households have already registered under the rooftop solar scheme 'PM-Surya Ghar: Muft Bijli Yojana', and lauded it as "outstanding news".

"Registrations have been pouring in from all parts of the nation. Assam, Bihar, Gujarat, Maharashtra, Odisha, Tamil Nadu, and Uttar Pradesh have seen over 5 lakh regulations," the PM said in a post on 'X'.

The prime minister also asked those who have not yet registered to do so at the earliest, noting that the initiative promises substantial reductions in electricity expenses for households along with ensuring energy production.

"It's poised to encourage Lifestyle for Environment (LiFE) on a grand scale, contributing to a better planet," PM Modi said.

Outstanding news!

In about a month since it was launched, over 1 crore households have already registered themselves for the PM-Surya Ghar: Muft Bijli Yojana.

Registrations have been pouring in from all parts of the nation. Assam, Bihar, Gujarat, Maharashtra, Odisha, Tamil…

— Narendra Modi (@narendramodi) March 16, 2024

"Today, on the auspicious occasion of the consecration of life in Ayodhya, my resolve has been further strengthened that the people of India should have their solar rooftop system on the roof of their houses," the PM was quoted as saying in the press release released on January 22, 2024.

Commenting on the scheme, Hitesh Doshi, Chairman of Waaree Group, said, "This scheme not only addresses the immediate needs of millions but is also expected to propel our nation towards energy self-sufficiency. The scheme's impact resonates across the entire solar supply chain, which may lead to the creation of demand right from the level of panel glass to aluminium to solar modules and various components associated with them."

This, in turn, will not only aid the industry's growth but also serve as a catalyst for employment generation, Doshi said.

Rooftop Solar Scheme: Companies that stand to benefit

According to Ravi Singhal, CEO of GCL Broking, local solar manufacturing companies such as Adani Green, Waaree, and Borosil could benefit as they will get contracts for solar panel manufacturing. Meanwhile, cable companies like KEI Industries and Polycab will also benefit as they can contribute towards installation. Further, renewable finance companies such as IREDA also stand to gain from the scheme, as manufacturing companies will require finance.

Similarly, battery companies such as Exide and Insolation Energy will also see increased demand for electricity storage.

On similar lines, Omkar Kamtekar Research Analyst Bonanza Portfolio believes the implementation of the Pradhan Mantri Suryodaya Yojana scheme is expected to increase demand for solar rooftop companies such as Tata Power, Gensol Engineering, Waaree Renewable Technologies, and others.

Atul Parakh, CEO of Bigul, expects Waaree Energies, Tata Power, Websol Energy Systems, Surana Solar, Adani Green Energy, and KPI Green Energy to benefit most from the government’s recent policy announcement.

Also Read: Rooftop Solar Scheme: Borosil Renewables, Tata Power and Waaree to gain big; check out other beneficiaries

Further, Bigul's Parakh says that banks and NBFCs will also benefit, as they may encourage the development of financial products like rooftop solar-specific loans or leasing options. Companies such as Exide Industries and Amara Raja Batteries, which produce other solar energy components like inverters and batteries, will also see increased demand for their products.

On the other hand, Vaibhav Jain, Head of Content & Education, Share.Market Research (PhonePe Wealth), said, "Investors must keep in mind that this scheme might not impact the power distribution companies as much as residents will generate power for their consumption, but the distribution of excess power will happen through the grid of these distribution companies."

Order book of companies

Tata Power

As per Zee Business research, the Tata Group company has a Solar EPC (Engineering, Procurement, and Construction) order book worth Rs 18,700 crore with a solar rooftop installed capacity of 11 GW. The total solar capacity stands at 72 GW (ground, water, and rooftop). 

The potential capacity is expected to reach 210 GW in the coming years.

Waree Renewables

The company's unexecuted order book is over 749 MW. The company's clientele includes L&T, BPCL, ArcelorMittal, RIL, Adani, and Mumbai Metro.

Websol Energy

The company manufactures photovoltaic cells and models and also works in rooftop EPC.

Solar Rooftop companies' past stock performance

In a year, Tata Power shares have gained over 93 per cent, Websol Energy has gained 398 per cent, Waaree Renewable Technologies has risen over 920 per cent, Borosil Renewables has gained over 11 per cent and Sterling and Wilson Renewable Energy shares have risen over 60 per cent against the Nifty50's rise of over 29 per cent. 

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