Alice Blue Home
URL copied to clipboard
Green energy vs EV sector

1 min read

Green Energy Sector Vs EV Sector

The main differences lie in their focus areas: Green energy sector concentrates on renewable power generation and distribution, while EV sector focuses on electric vehicle manufacturing and infrastructure. Both contribute to sustainability but through different technological and market approaches.

Green Energy Sector Overview

The green energy sector encompasses companies involved in renewable energy production, including solar, wind, hydroelectric and biomass technologies. This sector plays a crucial role in reducing carbon emissions and promoting sustainable development through clean energy solutions.

These companies develop innovative technologies, maintain power generation facilities and contribute to grid infrastructure development. The sector attracts significant investment due to growing environmental concerns and supportive government policies.

Alice Blue Image

EV Sector Overview

The Electric Vehicle sector comprises companies manufacturing electric vehicles, batteries, charging infrastructure and related components. This rapidly growing industry represents automotive evolution towards sustainable transportation solutions.

The sector drives technological innovation in battery development, charging systems and vehicle design while creating new market opportunities. Growing consumer awareness and government incentives support rapid market expansion.

Best Stocks In The Green Energy Sector

The below table shows the Best Stocks In The Green Energy Sector based on 1Y return.

NameClose Price (rs)1Y Return (%)
Waaree Renewable Technologies Ltd1015.9568.83
Inox Wind Ltd165.5753.79
Suzlon Energy Ltd57.4339.56
K.P. Energy Ltd456.3537.53
JSW Energy Ltd557.5514.98
Tata Power Company Ltd365.905.69
NHPC Ltd79.024.04
SJVN Ltd98.90-4.81
Orient Green Power Company Ltd16.07-21.08
Adani Green Energy Ltd1045.70-37.79

Top Stocks In The EV Sector

The below table shows the Top Stocks In The EV Sector based on 1Y return.

NameClose Price (rs)1Y Return (%)
Mahindra and Mahindra Ltd2821.3076.86
Amara Raja Energy & Mobility Ltd1094.7038.56
Bosch Ltd30611.0034.41
Maruti Suzuki India Ltd11883.7020.52
Exide Industries Ltd377.1519.84
Bajaj Auto Limited8468.5519.34
TVS Motor Company Ltd2291.9015.38
Bharat Forge Ltd1201.650.69
Tata Motors Ltd760.75-4.96
Hero MotoCorp Ltd4024.80-9.44

Fundamental Analysis Of Green Energy Sector

Waaree Renewable Technologies Ltd

Waaree Renewable Technologies is an engineering, procurement and construction (EPC) company focused on the renewable energy sector. The company specializes in solar EPC business, offering comprehensive solutions including rooftop solar, floating solar and ground-mounted projects through both CAPEX and RESCO models.

• Market Cap: ₹10,590.93 Cr

• Current Share Price: ₹1,015.95

• Returns: 1Y (68.83%), 1M (-22.87%), 6M (-45.84%)

• 5Y Average Net Profit Margin: -4.14%

• Dividend Yield: 0.10%

• 5Y CAGR: -4.14%

• Sector: Construction & Engineering

Inox Wind Ltd

Inox Wind is an integrated wind energy solutions provider manufacturing wind turbine generators (WTGs). With three manufacturing plants in Gujarat, Himachal Pradesh and Madhya Pradesh, the company has a cumulative manufacturing capacity of 1,600 MW, serving IPPs, utilities, PSUs and corporate clients.

• Market Cap: ₹21,586.92 Cr

• Current Share Price: ₹165.57

• Returns: 1Y (53.79%), 1M (-9.46%), 6M (10.67%)

• 5Y Average Net Profit Margin: -48.96%

• 5Y CAGR: -48.96%

• Sector: Heavy Electrical Equipments

Suzlon Energy Ltd

Suzlon Energy is a global renewable energy solutions provider specializing in wind turbine generators (WTGs). Founded in India, the company operates in 17 countries across multiple continents, offering advanced products like S144, S133 and S120 Wind Turbine Generators, along with comprehensive operations and maintenance services.

• Market Cap: ₹78,380.56 Cr

• Current Share Price: ₹57.43

• Returns: 1Y (39.56%), 1M (-10.63%), 6M (4.27%)

• 5Y Average Net Profit Margin: -9.16%

• 5Y CAGR: -9.16%

• Sector: Renewable Energy Equipment & Services

K.P. Energy Ltd

K.P. Energy specializes in wind farm development and related services in India. The company provides comprehensive solutions from siting wind farms to operations and maintenance, serving equipment manufacturers, independent power producers and institutional investors through three segments: Infrastructure Development, Power Sales and O&M Services.

• Market Cap: ₹3,043.40 Cr

• Current Share Price: ₹456.35

• Returns: 1Y (37.53%), 1M (-14.54%), 6M (11.00%)

• 5Y Average Net Profit Margin: 8.43%

• Dividend Yield: 0.10%

• 5Y CAGR: 8.43%

• Sector: Renewable Energy

JSW Energy Ltd

JSW Energy is a major power generation company focusing on both thermal and renewable energy sources. The company operates significant plants including Baspa (300 MW), Karcham Wangtoo (1091 MW) and facilities in Barmer, Vijaynagar and Ratnagiri, demonstrating its diverse power generation portfolio.

• Market Cap: ₹97,296.75 Cr

• Current Share Price: ₹557.55

• Returns: 1Y (14.98%), 1M (-14.31%), 6M (-21.45%)

• 5Y Average Net Profit Margin: 14.12%

• Dividend Yield: 0.34%

• 5Y CAGR: 14.12%

• Sector: Power Generation

Tata Power Company Ltd

Tata Power is India’s largest integrated power company, engaged in generation, transmission and distribution of electricity. The company operates across multiple segments including thermal, renewable energy and power distribution, while also providing project management services, infrastructure management and trading services through its extensive network.

• Market Cap: ₹116,917.47 Cr

• Current Share Price: ₹365.9

• Returns: 1Y (5.69%), 1M (-7.41%), 6M (-13.71%)

• 5Y Average Net Profit Margin: 4.30%

• Dividend Yield: 0.55%

• 5Y CAGR: 4.30%

• Sector: Power Transmission & Distribution

NHPC Ltd

NHPC is India’s premier hydropower company, currently constructing eight hydro projects with 6,434 MW capacity. The company operates multiple power stations including Salal, Dulhasti and Kishanganga, while also providing comprehensive consultancy services for hydropower project development, operation and modernization.

• Market Cap: ₹79,375.87 Cr

• Current Share Price: ₹79.02

• Returns: 1Y (4.04%), 1M (-3.11%), 6M (-26.36%)

• 5Y Average Net Profit Margin: 31.23%

• Dividend Yield: 2.40%

• 5Y CAGR: 31.23%

• Sector: Renewable Energy

SJVN Ltd

SJVN is a diversified power company engaged in hydro, thermal, wind and solar power generation. The company has expanded into wind power with projects like the 47.6 MW Khirvire Wind Power Project and 50 MW Sadla Wind Power Project, along with operating 81.3 MW of solar projects.

• Market Cap: ₹38,865.67 Cr

• Current Share Price: ₹98.9

• Returns: 1Y (-4.81%), 1M (-9.62%), 6M (-31.41%)

• 5Y Average Net Profit Margin: 41.40%

• Dividend Yield: 1.82%

• 5Y CAGR: 41.40%

• Sector: Renewable Energy

Orient Green Power Company Ltd

Orient Green Power specializes in renewable energy generation, primarily wind energy. The company manages a substantial portfolio of 402.3 MW wind assets distributed across Tamil Nadu, Andhra Pradesh, Gujarat and Karnataka in India, along with a 10.5 MW wind farm in Croatia, demonstrating its international presence.

• Market Cap: ₹1,885.06 Cr

• Current Share Price: ₹16.07

• Returns: 1Y (-21.08%), 1M (-4.57%), 6M (-15.05%)

• 5Y Average Net Profit Margin: 3.63%

• 5Y CAGR: 3.63%

• Sector: Renewable Energy

Adani Green Energy Ltd

Adani Green Energy is a major renewable power generation company developing, building and operating utility-scale grid-connected solar, wind and hybrid projects across India. With operations in 91 locations spanning multiple states, the company sells power through long-term PPAs and merchant arrangements.

• Market Cap: ₹165,642.28 Cr

• Current Share Price: ₹1,045.7

• Returns: 1Y (-37.79%), 1M (1.00%), 6M (-39.04%)

• 5Y Average Net Profit Margin: 7.01%

• 5Y CAGR: 7.01%

• Sector: Renewable Energy

Fundamental Analysis Of the EV Sector

Mahindra and Mahindra Ltd

Mahindra and Mahindra is a diversified conglomerate with a primary focus on automotive, farm equipment and financial services. Established in 1945, the company has grown into one of India’s largest manufacturers of utility vehicles and tractors, while also expanding into sectors like aerospace, clean energy and defense. Under the leadership of Anand Mahindra, the company operates across multiple segments.

• Market Cap: ₹338,185.02 Cr

• Current Share Price: ₹2,821.3

• Returns: 1Y (76.86%), 1M (-1.06%), 6M (0.59%)

• 5Y Average Net Profit Margin: 5.11%

• Dividend Yield: 0.70%

• 5Y CAGR: 5.11%

• Sector: Four Wheelers

Amara Raja Energy & Mobility Ltd

Formerly Amara Raja Batteries, the company is a leading manufacturer of lead-acid batteries for both industrial and automotive applications. Their flagship brands Amaron and PowerZone dominate the automotive and UPS battery segments, serving major telecom providers, railways and various industrial sectors, with a strong pan-India network.

• Market Cap: ₹20,035.79 Cr

• Current Share Price: ₹1,094.7

• Returns: 1Y (38.56%), 1M (-8.38%), 6M (-28.49%)

• 5Y Average Net Profit Margin: 7.85%

• Dividend Yield: 0.90%

• 5Y CAGR: 7.85%

• Sector: Batteries

Bosch Ltd

Bosch Limited is a leading supplier of automotive technology and services in India. The company produces a wide range of products including diesel and gasoline fuel injection systems, automotive aftermarket products and industrial equipment. With a strong focus on mobility solutions, Bosch serves both vehicle manufacturers and the aftermarket segment.

• Market Cap: ₹90,282.98 Cr

• Current Share Price: ₹30,611

• Returns: 1Y (34.41%), 1M (-10.46%), 6M (-10.33%)

• 5Y Average Net Profit Margin: 8.76%

• Dividend Yield: 1.23%

• 5Y CAGR: 8.76%

• Sector: Auto Parts

Maruti Suzuki India Ltd

Maruti Suzuki is India’s largest passenger vehicle manufacturer, offering vehicles through three distinct channels: NEXA, Arena and Commercial. The company’s comprehensive portfolio includes popular models across segments, supported by value-added services like Maruti Finance, Insurance and Driving Schools.

• Market Cap: ₹373,626.59 Cr

• Current Share Price: ₹11,883.7

• Returns: 1Y (20.52%), 1M (10.00%), 6M (-5.99%)

• 5Y Average Net Profit Margin: 6.70%

• Dividend Yield: 1.05%

• 5Y CAGR: 6.70%

• Sector: Four Wheelers

Exide Industries Ltd

Exide Industries is a major manufacturer of lead-acid storage batteries, serving automotive, power, telecom and infrastructure sectors. With nine manufacturing facilities, the company produces a comprehensive range of batteries from automotive to industrial applications, including solutions for electric vehicles.

• Market Cap: ₹32,057.75 Cr

• Current Share Price: ₹377.15

• Returns: 1Y (19.84%), 1M (-8.21%), 6M (-31.04%)

• 5Y Average Net Profit Margin: 10.02%

• Dividend Yield: 0.53%

• 5Y CAGR: 10.02%

• Sector: Batteries

Bajaj Auto Limited

Bajaj Auto is one of India’s premier two-wheeler and three-wheeler manufacturers. Founded in 1945, the company has evolved into a global automotive powerhouse with manufacturing facilities at Waluj, Chakan and Pantnagar. Through brands like Pulsar, KTM and Chetak, Bajaj serves both domestic and international markets with subsidiaries across Indonesia, Netherlands, Thailand, Spain and Brazil.

• Market Cap: ₹236,490.70 Cr

• Current Share Price: ₹8,468.55

• Returns: 1Y (19.34%), 1M (-3.51%), 6M (-10.00%)

• 5Y Average Net Profit Margin: 16.52%

• Dividend Yield: 0.94%

• 5Y CAGR: 16.52%

• Sector: Two Wheelers

TVS Motor Company Ltd

TVS Motor Company stands as a significant player in the two-wheeler industry with a diverse portfolio including motorcycles, scooters, mopeds and three-wheelers. The company has embraced electric mobility with its iQube model and operates four state-of-the-art manufacturing facilities. Their range includes popular models like Apache, Jupiter and NTORQ across various segments.

• Market Cap: ₹108,804.77 Cr

• Current Share Price: ₹2,291.9

• Returns: 1Y (15.38%), 1M (-4.60%), 6M (-5.53%)

• 5Y Average Net Profit Margin: 3.58%

• Dividend Yield: 0.35%

• 5Y CAGR: 3.58%

• Sector: Two Wheelers

Bharat Forge Ltd

Bharat Forge has established itself as a global leader in safety and critical components manufacturing. The company serves diverse sectors including automotive, railways, defense and aerospace. Recently, they’ve expanded into electric vehicle components, demonstrating their commitment to future mobility solutions.

• Market Cap: ₹57,449.52 Cr

• Current Share Price: ₹1,201.65

• Returns: 1Y (0.69%), 1M (-5.05%), 6M (-26.07%)

• 5Y Average Net Profit Margin: 4.46%

• Dividend Yield: 0.20%

• 5Y CAGR: 4.46%

• Sector: Iron & Steel

Tata Motors Ltd

Tata Motors has evolved into a global automotive powerhouse since its inception in 1945. The company maintains a diverse portfolio spanning passenger vehicles, commercial vehicles and luxury brands through Jaguar Land Rover. Through its automotive and financing segments, Tata Motors has established itself as a comprehensive mobility solutions provider with a significant presence in both domestic and international markets.

• Market Cap: ₹280,041.58 Cr

• Current Share Price: ₹760.75

• Returns: 1Y (-4.96%), 1M (5.73%), 6M (-24.16%)

• 5Y Average Net Profit Margin: -1.24%

• Dividend Yield: 0.71%

• 5Y CAGR: -1.24%

• Sector: Four Wheelers

Hero MotoCorp Ltd

Hero MotoCorp stands as the world’s largest manufacturer of two-wheelers by volume. With eight manufacturing facilities across India, Colombia and Bangladesh, the company offers a comprehensive range of motorcycles and scooters. Recently, they’ve expanded into the electric mobility segment with their Vida V1 model, demonstrating their commitment to future transportation solutions.

• Market Cap: ₹80,495.81 Cr

• Current Share Price: ₹4,024.8

• Returns: 1Y (-9.44%), 1M (-5.99%), 6M (-26.33%)

• 5Y Average Net Profit Margin: 9.31%

• Dividend Yield: 3.48%

• 5Y CAGR: 9.31%

• Sector: Two Wheelers

Green Energy Sector Performance & Growth

The below table shows the Green Energy Sector Performance & Growth based on 5 Year Net Profit Margin.

NameClose Price (rs)5Y Avg Net Profit Margin (%)
SJVN Ltd98.9041.40
NHPC Ltd79.0231.23
JSW Energy Ltd557.5514.12
K.P. Energy Ltd456.358.43
Adani Green Energy Ltd1045.707.01
Tata Power Company Ltd365.904.30
Orient Green Power Company Ltd16.073.63
Waaree Renewable Technologies Ltd1015.95-4.14
Suzlon Energy Ltd57.43-9.16
Inox Wind Ltd165.57-48.96

EV Sector Performance & Growth

The below table shows EV Sector Performance & Growth based on 5 Year’s Net Profit Margin.

NameClose Price (rs)5Y Avg Net Profit Margin (%)
Bajaj Auto Limited8468.5516.52
Exide Industries Ltd377.1510.02
Hero MotoCorp Ltd4024.809.31
Bosch Ltd30611.008.76
Amara Raja Energy & Mobility Ltd1094.707.85
Maruti Suzuki India Ltd11883.706.70
Mahindra and Mahindra Ltd2821.305.11
Bharat Forge Ltd1201.654.46
TVS Motor Company Ltd2291.903.58
Tata Motors Ltd760.75-1.24

Government Policies & Incentives For The Green Energy and EV Sector

The government supports green energy and EV sectors through subsidies, tax benefits and production-linked incentives (PLI), promoting solar, wind and electric vehicle adoption while reducing dependency on fossil fuels.

Policies like FAME-II for EVs and renewable energy targets encourage investment, infrastructure development and manufacturing expansion, ensuring sustainable growth, reduced emissions and enhanced energy security in India’s transition toward clean energy.

Challenges Faced By the Green Energy and EV Sector

The main challenges include infrastructure development costs, technology adaptation requirements, supply chain dependencies and market acceptance hurdles affecting both sectors’ growth trajectories.

  • Infrastructure Development: Massive investments required for renewable energy facilities and EV charging networks pose significant financial and implementation challenges across urban and rural areas.
  • Technology Limitations: Current battery technology, energy storage solutions and grid integration capabilities need advancement to meet growing market demands and efficiency requirements.
  • Market Adoption: Consumer awareness, cost considerations and traditional energy dependencies affect adoption rates despite government incentives and environmental benefits.

Future Outlook Of Green Energy and EV Sector

Both sectors demonstrate strong growth potential driven by environmental concerns, technological advancements and supportive policies. Market expansion continues through increasing investments and consumer adoption across segments.

Innovation in renewable technologies and electric mobility solutions indicates positive prospects, supported by global sustainability initiatives and domestic market development opportunities.

How to invest in the Green Energy and EV Sector Stocks?

Start by opening a demat account with Alice Blue, completing KYC requirements and researching companies in both sectors. Focus on fundamentals, technological capabilities and growth prospects.

Monitor market trends, policy developments and company performance while maintaining diversified exposure across both sectors through systematic investment approaches.

Difference Between EV Sector And Green Energy Sector – Conclusion

  • The main difference is that the green energy sector focuses on renewable power generation, while the EV sector centers on electric vehicle production and infrastructure, both contributing to sustainability through distinct technologies and market strategies.
  • The green energy sector involves renewable energy sources like solar, wind and hydro, reducing carbon emissions and supporting sustainable development. Companies focus on technology, power generation and grid infrastructure, attracting investments due to environmental concerns and government policies.
  • The EV sector includes manufacturers of electric vehicles, batteries and charging infrastructure, driving innovation in sustainable transportation. Growth is fueled by advancements in battery technology, increasing consumer adoption and supportive government incentives.
  • Government support for green energy and EV sectors includes subsidies, tax incentives and PLI schemes. Programs like FAME-II and renewable energy targets encourage investment, infrastructure expansion and reduced fossil fuel dependency, promoting India’s clean energy transition.
  • The main challenges include high infrastructure costs, technological adaptation, supply chain dependencies and market acceptance issues, impacting the growth and scalability of both sectors.
  • Both sectors show significant growth potential driven by environmental awareness, technological innovation and favourable policies. Increasing investments and consumer adoption signal positive prospects for renewable energy and electric mobility solutions globally.
  • To invest, open a demat account with Alice Blue, complete KYC, research sector fundamentals and track market trends. Diversify investments and monitor policies, company performance and technological advancements for informed decisions in green energy and EV sectors.
Alice Blue Image

Green Energy Sector Vs EV Sector – FAQs

1. What Is the Green Energy Sector?

The green energy sector encompasses companies involved in renewable energy production, distribution and related technologies including solar, wind, hydroelectric and biomass power. It focuses on sustainable energy solutions reducing environmental impact.

2. What Is The EV Sector?

The Electric Vehicle sector comprises manufacturers, component suppliers and infrastructure providers focused on electric mobility solutions. It includes vehicle production, battery technology, charging networks and related service providers.

3. What Is The Difference Between the Green Energy Sector And EV Sector?

The main distinction lies in their core focus: Green energy sector develops renewable power generation solutions, while EV sector concentrates on electric transportation. Both support sustainability through different technological approaches and market segments.

4. Which Are The Best Stocks In The Green Energy Sector?

Best Stocks In The Green Energy Sector #1: Adani Green Energy Ltd
Best Stocks In The Green Energy Sector #2: Tata Power Company Ltd
Best Stocks In The Green Energy Sector #3: JSW Energy Ltd
Best Stocks In The Green Energy Sector #4: NHPC Ltd
Best Stocks In The Green Energy Sector #5: Suzlon Energy Ltd

Best Stocks In The Green Energy Sector based on market capitalization.

5. Which Are The Best Stocks In The EV Sector?

Best Stocks In The EV Sector #1: Maruti Suzuki India Ltd
Best Stocks In The EV Sector #2: Mahindra and Mahindra Ltd
Best Stocks In The EV Sector #3: Tata Motors Ltd
Best Stocks In The EV Sector #4: Bajaj Auto Limited
Best Stocks In The EV Sector #5: TVS Motor Company Ltd

Best Stocks In The EV Sector based on market capitalization.

6. What Are The Returns Of The Green Energy Sector?

The renewable energy sector has demonstrated strong returns with average annual growth of 15-20%, driven by increasing adoption, technological improvements and supportive policies enhancing profitability across various green energy segments.

7. At What Rate Did The EV Sector Grow By?

The EV sector has shown an impressive CAGR of 25% over the past five years, driven by increasing vehicle adoption, infrastructure development, battery technology improvements and supportive government policies.

8. What Are The Challenges Faced By The EV Sector?

The main challenges include charging infrastructure limitations, battery technology constraints, high initial costs, range anxiety issues and supply chain dependencies affecting industry growth and market adoption rates.

9. How Much Did FII Invest In The Green Energy Sector?

Foreign Institutional Investors have invested approximately Rs. 8,69,37 crore in India’s green energy sector over the past year, demonstrating strong international confidence in the sector’s growth potential and sustainability focus.

10. What Is The ROCE For The Green Energy Sector?

The green energy sector maintains an average Return on Capital Employed (ROCE) of 12-15%, indicating efficient capital utilization and strong operational performance across major companies in renewable energy segments.

11. Is The EV Sector Overvalued?

Yes, the electric vehicle (EV) sector is currently considered overvalued. High valuations of many EV companies, despite declining stock prices, suggest that these stocks may still be overvalued relative to their financial performance. 

12. What Are The Risks Of Investing In The Green Energy Sector?

The main risks include regulatory changes, technological obsolescence, competition intensity, project execution challenges and market volatility affecting investment returns in renewable energy companies despite strong growth potential.

Disclaimer: The above article is written for educational purposes and the companies’ data mentioned in the article may change with respect to time. The securities quoted are exemplary and are not recommendatory.

All Topics
Related Posts
Leather Stocks In India - Leather Stocks
Finance

Leather Stocks In India – Leather Stocks

Leather stocks in India refer to shares of companies involved in the production, manufacturing, and export of leather products, including footwear, accessories, and goods. Prominent

List Of Adani Group Stocks
Finance

List of Adani Group Stocks

The table below shows the Best Adani Group Stocks In India based on Market Capitalization. Stock Name Market Cap (₹ Cr) Close Price (₹) 1Y

Nifty India Tourism English
Finance

Nifty India Tourism 

The table below shows Nifty India Tourism based on the Highest Market Capitalization. Name Market Cap (Cr) Close Price (rs) Interglobe Aviation Ltd 1,71,703.07 4,464.70