The biggest stock winners in India’s renewable sector are now all facing the challenge from minuscule earnings, which has sent valuations through the roof.
A 5,800% Renewables Stock Boom Has Some Indian Investors Worried bnnbloomberg.ca - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from bnnbloomberg.ca Daily Mail and Mail on Sunday newspapers.
India Business News: India’s renewable energy stocks have enjoyed a scorching rally for the past two years as retail buyers pile in, but their extended valuations are flashing warning signs. SG Mart Ltd, a Gujarat-based solar and wind energy producer, has soared over 5,800% since November 2021. The skyrocketing share prices of these small stocks are now facing a reality check, as surging production capacity weighed on prices and earnings are struggling to keep up with the pace of gains. The biggest stock winners in India’s renewable sector are now all facing the challenge from minuscule earnings, which has sent valuations through the roof. Institutional investors have largely stayed away from some of the big winners in the sector, citing untenable valuations and low free floats.
SG Mart Ltd., a Gujarat-based solar and wind energy producer, has soared over 5,800% since November 2021 — when Prime Minister Narendra Modi announced that India aimed to boost clean energy to more than two-thirds of overall capacity. Gensol Engineering Ltd. has rallied more than 3,200%, Zodiac Energy Ltd. 1,000% and Waaree Renewable Technologies Ltd. 1,800% in that same period.