Top Solar and Renewable Energy Stocks to Watch in 2025

  The renewable energy sector, particularly solar, is experiencing unprecedented growth as global demand for clean energy surges. Governments, corporations, and investors are increasingly focusing on sustainable solutions, making solar energy stocks a hot topic for 2025. This blog explores key players in the solar industry, categorized by their expertise in solar glass, solar modules, and solar batteries, offering insights into their potential for investors and enthusiasts alike. Why Invest in Solar and Renewable Energy Stocks? Solar energy is at the forefront of the renewable energy revolution, driven by declining costs, technological advancements, and supportive policies. The International Energy Agency (IEA) projects that solar power will account for a significant portion of global electricity generation by 2030. Investing in solar stocks offers exposure to this fast-growing sector, with companies innovating in solar glass, modules, and batteries poised for substantial gains. Ke...
0

NSE Unlisted Shares Surge 60% in 2 Weeks: Still a Bargain, Analysts Say

                 

The unlisted shares of the National Stock Exchange (NSE) have skyrocketed by 60% in just two weeks, reaching ₹2,400 per share in the pre-IPO market as of June 2, 2025. This sharp rally has sparked intense investor interest, with over 1 lakh retail investors—a record for any unlisted company fueling a fear of missing out (FOMO). But is it too late to jump in, or does NSE remain an attractive investment opportunity? Analysts believe the stock is still undervalued compared to its peers, making it a compelling case for investors eyeing long-term gains. Here’s what you need to know.

Why Are NSE Shares Soaring?

The NSE, India’s leading stock exchange, has seen its unlisted shares climb from ₹1,500 to ₹2,400 in just two weeks, driven by several key factors:

  1. IPO Buzz: Speculation around NSE’s long-awaited initial public offering (IPO) is gaining momentum. Reports suggest that the exchange is nearing resolution of regulatory hurdles with the Securities and Exchange Board of India (SEBI), including a proposed ₹1,000 crore settlement for the co-location case. This has boosted confidence in a potential near-term listing.

  2. Robust Financials: NSE’s financial performance is stellar. Its revenue grew at a 33% CAGR from FY22 to FY25, reaching ₹19,177 crore, while net profit surged at a 36% CAGR to ₹12,188 crore. The exchange also boasts a high 71% dividend payout ratio, making it attractive for income-focused investors.

  3. Retail Frenzy: With over 1 lakh shareholders, NSE has become the most sought-after unlisted stock in India. The rapid rise in retail participation and FOMO is driving demand, creating a supply-demand imbalance in the grey market.

  4. Attractive Valuation: Despite the 60% surge, NSE’s price-to-earnings (P/E) ratio of 70x is lower than its listed peer BSE, which trades at 83x. Analysts argue that NSE’s dominant market position and growth metrics justify further upside.

Is NSE Still Undervalued?

Analysts tracking the unlisted market remain bullish on NSE. Simranjeet Singh Bhatia, Senior Equity Research Analyst at Almondz Global, highlights that NSE’s valuation remains attractive compared to its peers. With a market capitalization of approximately ₹5.9 lakh crore at ₹2,400 per share, NSE ranks as the fifth-largest stock exchange globally, trailing only the New York Stock Exchange, Nasdaq, Shanghai Stock Exchange, and Tokyo Stock Exchange.

NSE’s dominance is unmatched:

  • 99.8% market share in equity futures

  • 94.6% in the cash segment

  • 93.9% in currency derivatives

  • 81.2% in equity options as of Q4FY25

Prashanth Tapse, Senior VP of Research at Mehta Equities, notes that NSE trades at a healthy discount to BSE, reinforcing expectations of potential listing gains once the IPO materializes. The exchange’s strong earnings growth, low P/E ratio, and high return on equity (ROE) of 45% in FY25 further bolster its appeal.

Should You Invest in NSE Unlisted Shares?

While the rally is impressive, investing in unlisted shares comes with risks. Here are key considerations:

Why Invest?

  • IPO Upside Potential: If SEBI grants the No Objection Certificate (NOC), NSE’s IPO could unlock significant value, potentially pushing share prices higher. Analysts predict a listing valuation of ₹3.75 lakh crore to ₹5.9 lakh crore, depending on pricing.

  • Strong Fundamentals: NSE’s asset-light, digital-first model, high margins (74% operating profit margin), and consistent dividend payouts make it a rare gem.

  • Market Leadership: As the world’s largest derivatives exchange and second-largest in equities by trade volume, NSE’s growth trajectory is robust, supported by India’s expanding capital markets.

Risks to Consider

  • Regulatory Uncertainty: While progress is being made, delays in IPO approval or unresolved compliance issues could impact timelines and valuations.

  • Liquidity Challenges: Unlisted shares are harder to trade, with limited transparency and potential counterparty risks in the grey market.

  • Valuation Concerns: Some market observers caution that prices above ₹2,000 may be speculative, driven by IPO hype rather than fundamentals.

  • Market Share Risks: NSE’s equity options market share dropped from 96.9% in FY24 to 87.4% in FY25 due to SEBI’s restrictions on weekly index expiries, which rival BSE capitalized on.

How to Invest in NSE Unlisted Shares

Retail investors can access NSE unlisted shares through wealth management firms or stock brokers like UnlistedZone, Sharescart, or Altius Investech. The process typically involves:

  1. Contacting a broker to confirm share availability and price.

  2. Providing a Client Master Report (CMR) and initiating a bank transfer (NEFT/IMPS/RTGS).

  3. Shares are credited to your demat account within 1-2 days, thanks to recent improvements in delivery timelines.

Minimum lot sizes start at an investment of around ₹20,000, but prices and availability vary based on market demand.

What’s Next for NSE?

The NSE IPO remains the biggest trigger for the stock. SEBI Chairperson Tuhin Kanta Pandey recently confirmed ongoing discussions to resolve outstanding issues, raising hopes for a listing in the near future. Additionally, NSE’s ₹35 per share dividend and 4:1 bonus issue have further fueled investor enthusiasm.

However, caution is warranted. Hitesh Dharawat from Dharawat Securities advises that while the IPO buzz is driving the rally, investors should be mindful of risks, as the recent surge may already reflect much of the optimism.

Final Thoughts

NSE’s unlisted shares offer a unique opportunity to invest in India’s financial backbone, with strong fundamentals, attractive valuations, and IPO-driven upside potential. However, the 60% surge in two weeks and FOMO-driven demand call for careful evaluation. Investors should weigh the exchange’s dominant market position and growth metrics against the inherent risks of unlisted securities, such as liquidity constraints and regulatory uncertainties.

For those considering entry, consulting a qualified financial advisor is crucial to navigate the complexities of the grey market and align investments with your risk appetite and financial goals.

Comments

Post a Comment