Indian (NIFTY) Renewable Energy Industry Analysis

Industry Valuation and Performance

Has the Indian Renewable Energy Industry valuation changed over the past few years?

Current Industry PE: Investors are more optimistic on the industry, considering it's trading at a PE ratio of 22.4x which is higher than its 3-year average PE of 9.5x. It appears they are confident that earnings will grow faster in the future than they have historically.

Past Earnings Growth: The earnings for companies in the Renewable Energy industry have grown 25% per year over the last three years, and revenues for these companies have grown 6.6% per year. This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.

Industry Trends

Which industries have driven the changes within the Indian Renewable Energy industry?

Industry PE: Investors are most optimistic about the Renewable Energy industry which is trading above its 3-year average PE ratio of 9.1x. However analysts are expecting annual earnings growth of 6.2%, which is lower than the prior year's growth of 56% per year. So the market might believe that analysts are underestimating future growth. Meanwhile, investors are most pessimistic about the Independent Power Producers and Energy Traders industry. Although, investor sentiment seems to have improved given its trading above its 3-year average of 11.3x.

Forecasted Growth: Analysts are most optimistic on the Independent Power Producers and Energy Traders industry, expecting annual earnings growth of 33% over the next 5 years. This is better than its past earnings decline of 4.7% per year. Meanwhile, the Renewable Energy industry is expected to see its earnings grow by 6.2% per year over the next few years.

Top Stock Gainers and Losers

Which companies have driven the market over the last 7 days?