Hydropower stocks in India are once again in the news as the country’s need for clean energy grows rapidly. The government is also pursuing large-scale pumped-storage hydro projects over 6 GW of capacity will be commissioned in the country by 2025, and many new units are under construction. This has made the sector more attractive than ever for investors. In this blog, we’ll explain in simple terms the best hydropower stocks in India, a useful hydropower share list, and the top 10 hydroelectric power plants, so you can better understand the sector and make informed investment decisions.
What Are Hydropower Stocks?
Hydropower stocks are shares of companies that generate electricity from water. These companies generate electricity using large dams, river flows, or pumped-storage units that store water upstream. They then sell this electricity to various states and DISCOMs. In simple terms, the shares of companies whose business relies on hydroelectric power are called hydropower stocks.
Best Hydro power stocks in india
| S.NO | Company | Current Market Price (INR) | Market Capitalisation (in INR crore) | 52-Week High | 52-Week Low |
|---|---|---|---|---|---|
| 1 | Larsen & Toubro Ltd | 4,096 | 5,76,168 | 4,140 | 2,965 |
| 2 | NTPC Ltd | 326 | 3,16,450 | 375 | 293 |
| 3 | Adani Green Energy Ltd | 1,039 | 1,71,372 | 1,448 | 758 |
| 4 | Tata Power Company Ltd | 382 | 1,22,094 | 448 | 326 |
| 5 | JSW Energy Ltd | 480 | 83,814 | 701 | 419 |
| 6 | NHPC Ltd | 77.8 | 78,181 | 92.3 | 71.0 |
| 7 | SJVN Ltd | 78.5 | 30,833 | 124 | 78.0 |
| 8 | CESC Ltd | 166 | 22,031 | 204 | 119 |
| 9 | Reliance Power Ltd | 37.4 | 15,480 | 76.5 | 31.3 |
| 10 | Jaiprakash Power Ventures Ltd | 19.9 | 13,638 | 27.7 | 12.4 |
A brief overview of the hydro power Stocks in India is given below:
1. Larsen & Toubro Ltd (L&T)
Larsen & Toubro, or L&T, is a company known for building almost every major project in India. Founded in 1938, it has maintained a strong presence in engineering and construction since its inception. Whether it’s dams, bridges, metro projects, or power plants, L&T is involved in almost every type of heavy engineering project. The company also has a significant presence in the hydro sector. L&T constructs large hydro dams, tunneling, powerhouses, and water-related infrastructure. Its greatest strength is that it can complete projects even when the work is difficult, the terrain is difficult, or the design is complex. Therefore, it is considered one of India’s most trusted engineering companies.
Know the Returns:
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
|---|---|---|
| 11.65% | 98.26% | 264.67% |
2. NTPC Ltd
NTPC is one of those Indian companies whose name is almost inextricably linked with the power sector. It was established in 1975 with the aim of providing uninterrupted power supply to people and industries across the country. NTPC began with thermal power, but gradually expanded into various sources such as gas, solar, wind, and hydro. NTPC’s role in hydropower is now expanding. The company is working on several new hydro projects, especially in hilly areas. NTPC is known for its ability to handle large projects, its technical expertise, and its generally stable operation. This makes it one of India’s most reliable power companies.
Know the Returns:
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
|---|---|---|
| -9.82% | 91.61% | 244.77% |
3. Adani Green Energy Ltd
Adani Green Energy is one of India’s fastest-growing renewable energy companies. Initially focused on solar and wind power, the company has also expanded into larger projects such as hydro and pumped-storage projects in recent years. Adani Green’s strength lies in its large-scale ability to quickly set up projects and operate them for long periods of time. Its work in the renewable sector is evident: large solar parks, wind farms, and now new hydro-based projects. The company aims to play a key role in the country’s clean energy transition in the coming years.
Know the Returns:
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
|---|---|---|
| -4.41% | -47.79% | -8.54% |
4. Tata Power Company Ltd
Tata Power is one of India’s oldest and most trusted power companies. Established around 1910, it has been a major player in the country’s power generation, transmission, and distribution sector ever since. Tata Power’s unique strength is its presence in all forms of energy thermal, solar, wind, and hydro. The company has a long presence in hydropower, particularly in
regions like Himachal Pradesh and Maharashtra. Tata Power is among those companies gradually shifting its portfolio toward green energy. Its focus is clearly producing sustainable, reliable, and clean power. This is why Tata Power is a name that automatically comes to mind when the power sector is mentioned.
Know the Returns:
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
|---|---|---|
| -7.19% | 69.83% | 489.68% |
5. JSW Energy Ltd
JSW Energy is the power sector arm of the JSW Group and is recognized as a trusted energy company in the country. The company began with thermal and power generation, but in recent years has focused significantly on renewable energy. Significantly, JSW Energy is rapidly expanding hydropower and pumped-storage projects, as these will play a significant role in balancing future power demand.The company is recognized for its quality management, rapid project execution, and clear strategy. JSW Energy is one of the few private companies strengthening its portfolio by balancing hydro, wind, and solar.
Know the Returns:
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
|---|---|---|
| -26.87% | 55.40% | 683.04% |
6. NHPC Ltd
NHPC is also known as the synonym for hydropower in India, as the company has been exclusively engaged in hydropower projects since its inception. It was established in 1975 to systematically develop large dams and hydroelectric projects in the country. NHPC’s strength lies in its extensive experience in handling mountainous terrain, difficult river basins, and large-scale dam projects, giving it a distinct identity in this sector.
Today, NHPC is the country’s largest pure-play hydro company and is also working on several new projects. The company has a reputation as a stable, reliable, and technically strong organization with long-standing experience in the hydro sector.
Know the Returns:
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
|---|---|---|
| -6.60% | 85.60% | 258.93% |
7. SJVN Ltd
SJVN was established in 1988 when the Government of India and the Government of Himachal Pradesh jointly formed it. The initial objective was to develop large hydro projects in the hilly areas of Himachal. Gradually, the company’s work expanded, and today, SJVN handles projects not only in Himachal but also in Uttarakhand, Bihar, Gujarat, and countries like Nepal. SJVN has always been known for its hydro expertise especially in areas where the terrain is difficult and project construction is difficult. In recent years, the company has also expanded into solar and wind, but its roots remain firmly rooted in hydropower.
Know the Returns:
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
|---|---|---|
| -30.61% | 100.28% | 223.97% |
8. CESC Ltd
CESC is a very old company, established in 1899. This makes it one of the first companies to begin supplying electricity in India. Its primary focus has been Kolkata and its surrounding areas, where it not only generates electricity but also delivers it directly to consumers. CESC has always been known for its consistent and reliable power services. Initially, the company focused primarily on thermal power, but over time, it has also expanded its interest in renewable and small hydro projects. Today, it is seen as a stable, experienced, and reliable power company.
Know the Returns:
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
|---|---|---|
| -4.86% | 118.07% | 185.60% |
9. Reliance Power Ltd
Reliance Power was founded in 1995. At that time, the company’s goal was to develop large power projects in various regions of India to meet the growing demand for electricity. The company has worked on thermal and gas projects as well as hydro projects, especially in areas with strong river flows and the potential for the construction of small and large hydro plants. Reliance Power’s unique strength lies in its experience in setting up projects even in difficult locations. Over time, the company has changed its strategy and now focuses more on projects that are considered sustainable and safe for years to come. It has gained recognition for its large-scale work and focus on long-term energy projects.
Know the Returns:
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
|---|---|---|
| 8.07% | 123.27% | 1,105.81% |
10. Jaiprakash Power Ventures Ltd
Jaiprakash Power Ventures was founded in 1994. This was a time when the need for large power projects in the country was rapidly increasing, and the company began working in that direction. JP Power has been particularly involved in both hydro and thermal projects, and its work is mostly visible in hilly states like Uttarakhand, Himachal, and Madhya Pradesh. The company’s reputation has been established by its work on many hydro projects that are difficult to build in hilly areas. Its ground-level understanding of river flows, local conditions, and hydro setups is why it is considered an experienced and ground-level company in the hydro sector.
Know the Returns:
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
|---|---|---|
| 21.22% | 147.92% | 736.17% |
Read Also: Investing in Water-Related Stocks in India
Key Performance Indicators (KPIs)
The key performance metrics of hydro power Stocks in India are mentioned below:
| Company | Operating Margin (%) | Net Profit Margin (%) | ROE (%) | ROCE (%) | Debt to Equity |
|---|---|---|---|---|---|
| Larsen & Toubro Ltd | 10.33 | 6.91 | 15.39 | 14.89 | 1.33 |
| NTPC Ltd | 20.96 | 11.55 | 12.72 | 9.40 | 1.34 |
| Adani Green Energy Ltd | 67.68 | 13.88 | 13.47 | 8.02 | 7.29 |
| Tata Power Company Ltd | 17.29 | 6.08 | 11.07 | 10.18 | 1.62 |
| JSW Energy Ltd | 37.97 | 16.68 | 7.13 | 5.70 | 1.81 |
| NHPC Ltd | 54.68 | 32.84 | 7.57 | 6.21 | 0.99 |
| SJVN Ltd | 60.20 | 26.44 | 5.78 | 4.45 | 1.90 |
| CESC Ltd | 10.93 | 8.39 | 11.39 | 5.71 | 1.48 |
| Reliance Power Ltd | 24.69 | 38.87 | 18.04 | 5.91 | 0.93 |
| Jaiprakash Power Ventures Ltd | 29.83 | 14.89 | 9.59 | 10.05 | 0.44 |
How to Evaluate Hydropower Stocks
- Installed Hydro Capacity : The number of MW of hydropower a company has in operation and the number of new projects under construction reflects its true strength. Large and stable capacity means reliable production.
- PLF & Water Flow Stability : Hydro’s PLF is directly dependent on river flow. Plants with stable water sources generate good production year-round.
- Long-Term PPA & Tariff : A 25-40-year PPA secures a company’s income. The more stable and long-term the tariff, the more reliable the earnings.
- Debt Levels & Funding Plan : Hydro projects are expensive, so debt is necessary. However, the company’s debt must be manageable and have a clear funding roadmap.
- Project Execution Record : Dam and hydro projects often face delays. A company with a track record of timely completion is considered less risky.
- Environmental & Approval Risk : Hydro projects often face environmental clearance, land, and local objections. Companies with clear approvals have lower risk.
- Revenue Mix Regulated vs. Merchant : Most hydropower is sold at a regulated tariff. If the share of merchant sales is high, earnings can be volatile.
- Pumped-Storage Potential : The demand for PSPs is growing rapidly in India. Companies with good pumped-storage sites are considered to have stronger future growth.
Read Also: Best Multibagger PSU Stocks in India
Risks & Red Flags in Hydropower Investing
- Long Construction Timelines : Hydro projects take many years to complete. Delays increase costs and impact company earnings.
- High Debt Burden : Dams and hydro plants are highly costly, leading to high debt burdens for companies. If projects are not completed on time, this debt can severely impact a company’s balance sheet.
- Dependence on Monsoon & Water Flow : Hydro power runs entirely on water. A weak monsoon or a drop in river flow directly impacts power generation.
- Environmental & Clearance Issues : Many hydro projects are stalled due to environmental objections, local opposition, or court cases. This increases both project costs and timelines.
- Weak Discom Exposure : Discoms in many states do not make timely payments. If the company has PPAs with such states, cash flow may be delayed.
Read Also: List Of Best PSU Stocks in India
Conclusion
Hydropower is a reliable and long-term component of India’s energy needs. Companies in this sector offer stable capacity, clean energy, and strong project experience, making them an interesting option for investors. If you understand this theme and focus on select companies where projects are completed on time and water availability is stable this sector can provide significant stability to your portfolio.
Frequently Asked Questions (FAQs)
What are hydropower stocks?
Hydropower stocks are companies that operate water-based power projects, such as dams or run-of-river plants.
Are hydropower stocks good for long-term investing?
Yes, because their earnings are generally stable and the projects have a long lifespan.
Which is the biggest hydropower company in India?
NHPC is considered India’s largest hydropower company.
What risks should investors consider in hydropower stocks?
The biggest risks are dependence on monsoons, project delays, and challenges with environmental clearances.
Do hydropower companies also work in renewable energy?
Yes, many companies, such as SJVN, JSW Energy, and Tata Power, also work in solar and wind, along with hydro.
