5 Undervalued Renewable Energy Stocks To Add To Your Watchlist
This article highlights 5 undervalued renewable energy stocks India investors should consider adding to their watchlist. These companies show strong fundamentals and growth potential but have not yet been fully recognized by the market, making them attractive renewable energy stocks to buy now.
This article highlights 5 undervalued renewable energy stocks India investors should consider adding to their watchlist. These companies show strong fundamentals and growth potential but have not yet been fully recognized by the market, making them attractive renewable energy stocks to buy now.

1. Waaree Energies Ltd.
Waaree Energies is a leading manufacturer of solar PV modules in India, with an installed capacity of 15 GW and 5.4 GW for cells as of FY25. The company offers a diverse portfolio, including multicrystalline, monocrystalline, TOPCon, and building-integrated photovoltaic (BIPV) modules under the “Waaree” brand.
The company’s 5-year return on equity (ROE) averages 30%, with sales growing at a CAGR of 49% and net profit surging at a CAGR of 117% over five years. With a strong order book of 26.5 GW valued around Rs 500 billion, Waaree’s expansion plans and execution capabilities make it a promising undervalued stock in India.
2. Premier Energies Ltd.
Premier Energies is an integrated solar cell and module manufacturer with 29 years of experience. Operating five facilities in Hyderabad, it has a solar cell capacity of 2 GW and module capacity of 5.1 GW, planning to enter wafer production soon.
Premier’s strong order book and government-backed demand through schemes like Surya Ghar and Kusum position it well among renewable energy stocks India investors should watch.
3. Sterling & Wilson Renewable Energy Ltd.
Sterling & Wilson Renewable Energy is a global solar EPC firm with operations in 28 countries, specializing in turnkey and rooftop solar projects. Recently profitable, the company is expanding into Battery Energy Storage Solutions and wind EPC for hybrid projects.
Despite a lower PS ratio of 1.1 compared to its 3-year average of 2.9, Sterling & Wilson’s international presence and robust pipeline with expected 15-20% revenue growth for FY26 make it a noteworthy contender among renewable energy stocks to buy.
4. Websol Energy System Ltd.
Founded in 1994, Websol Energy System manufactures high-efficiency solar cells and modules in India. Its Falta facility boasts a fully automated 600 MW Mono PERC solar cell line and 550 MW module capacity, shipping to international markets like the US, UK, and Africa.
Trading at Rs 1,399 with a PE of 39—well below the industry average of 130—Websol has demonstrated strong growth, with a 3-year ROE of 23% and sales CAGR of 39%. The company plans to quadruple its solar cell capacity to 2.4 GW by 2026, signaling an exciting growth phase for this undervalued stock in India.
5. K.P. Energy Ltd.
K.P. Energy specializes in Balance of Plant (BOP) solutions for wind and wind-solar hybrid projects, offering comprehensive EPCC and O&M services. It also operates an Independent Power Producer (IPP) portfolio, generating recurring revenue.
At a PE of 33 and a PS ratio close to its 3-year median, K.P. Energy shows strong fundamentals. With a 3-year ROE of 42%, sales CAGR of 55%, and net profit growth of 89%, the company has a substantial order book and an ambitious plan to expand its IPP capacity to 100 MW.
These solid growth prospects position K.P. Energy among the top renewable energy stocks India investors should consider.
Why Consider These Stocks Now?
India’s renewable energy sector is poised for accelerated growth, driven by policy support, falling technology costs, and increasing energy demand. Investing early in fundamentally strong yet undervalued companies can offer significant upside as the market recognizes their true potential.
- Government incentives and aggressive renewable capacity targets.
- Increased adoption of clean energy in industrial and residential sectors.
- Growing investor interest in ESG (Environmental, Social, Governance) aligned assets.
These five stocks — Waaree Energies, Premier Energies, Sterling & Wilson Renewable Energy, Websol Energy System, and K.P. Energy — represent varied yet promising segments within India’s renewable ecosystem. Their undervaluation coupled with solid fundamentals makes them worthy of inclusion in your portfolio
Conclusion
For those looking for undervalued stocks in India within the renewable space, these five companies offer compelling opportunities. However, always conduct thorough research on financial health, execution capabilities, and governance before investing to ensure alignment with your financial goals and risk appetite.