Why NHPC's (NSE:NHPC) Shaky Earnings Are Just The Beginning Of Its Problems
May 25
Indian (NIFTY) Renewable Energy Industry Analysis
UpdatedJun 03, 2024
DataAggregated Company Financials
Companies27
- 7D0.6%
- 3M10.3%
- 1Y130.5%
- YTD28.2%
Last week, the Renewable Energy industry hasn't moved much but Adani Power is up 6.9% in that time. The past year has been better, since the industry has gained 131% in that time. Earnings are forecast to grow by 12% annually.
Industry Valuation and Performance
Has the Indian Renewable Energy Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Mon, 03 Jun 2024 | ₹12.5t | ₹3.2t | ₹576.2b | 41.4x | 21.8x | 4x |
| Wed, 01 May 2024 | ₹11.7t | ₹3.1t | ₹514.7b | 26x | 22.7x | 3.8x |
| Fri, 29 Mar 2024 | ₹11.0t | ₹3.1t | ₹508.5b | 27.1x | 21.5x | 3.6x |
| Sun, 25 Feb 2024 | ₹11.3t | ₹3.1t | ₹508.5b | 34.5x | 22.1x | 3.7x |
| Tue, 23 Jan 2024 | ₹10.3t | ₹3.0t | ₹505.7b | 20.7x | 20.3x | 3.4x |
| Thu, 21 Dec 2023 | ₹9.1t | ₹3.0t | ₹505.5b | 17x | 18.1x | 3x |
| Sat, 18 Nov 2023 | ₹7.3t | ₹3.0t | ₹505.5b | 13.6x | 14.3x | 2.4x |
| Mon, 16 Oct 2023 | ₹6.8t | ₹2.9t | ₹389.3b | 15.5x | 17.5x | 2.3x |
| Wed, 13 Sep 2023 | ₹7.0t | ₹2.9t | ₹389.1b | 13.6x | 17.9x | 2.4x |
| Fri, 11 Aug 2023 | ₹6.2t | ₹2.9t | ₹389.1b | 18.9x | 16x | 2.1x |
| Sun, 09 Jul 2023 | ₹5.7t | ₹2.9t | ₹345.5b | 18.5x | 16.4x | 1.9x |
| Tue, 06 Jun 2023 | ₹5.4t | ₹2.9t | ₹359.0b | 11.3x | 15.1x | 1.9x |
| Thu, 04 May 2023 | ₹5.3t | ₹2.8t | ₹337.4b | 13.6x | 15.7x | 1.9x |
| Sat, 01 Apr 2023 | ₹4.9t | ₹2.8t | ₹332.1b | 12x | 14.7x | 1.7x |
| Mon, 27 Feb 2023 | ₹4.0t | ₹2.8t | ₹332.1b | 12.3x | 12.1x | 1.4x |
| Wed, 25 Jan 2023 | ₹6.9t | ₹2.7t | ₹343.1b | 14.3x | 20x | 2.6x |
| Fri, 23 Dec 2022 | ₹6.9t | ₹2.7t | ₹344.5b | 14x | 20.2x | 2.6x |
| Sun, 20 Nov 2022 | ₹7.5t | ₹2.7t | ₹348.8b | 14.7x | 21.5x | 2.8x |
| Tue, 18 Oct 2022 | ₹4.1t | ₹2.5t | ₹332.8b | 15.6x | 12.4x | 1.7x |
| Thu, 15 Sep 2022 | ₹4.5t | ₹2.5t | ₹332.8b | 18.1x | 13.5x | 1.8x |
| Sat, 13 Aug 2022 | ₹4.1t | ₹2.5t | ₹333.0b | 15.6x | 12.2x | 1.7x |
| Mon, 11 Jul 2022 | ₹3.4t | ₹2.2t | ₹275.1b | 17.1x | 12.4x | 1.5x |
| Wed, 08 Jun 2022 | ₹3.7t | ₹2.2t | ₹287.1b | 15.8x | 13x | 1.7x |
| Fri, 06 May 2022 | ₹3.8t | ₹2.1t | ₹227.6b | 19.2x | 16.6x | 1.8x |
| Sun, 03 Apr 2022 | ₹3.3t | ₹2.1t | ₹220.2b | 18.9x | 14.9x | 1.6x |
| Tue, 01 Mar 2022 | ₹2.9t | ₹2.1t | ₹220.2b | 19.3x | 13.2x | 1.4x |
| Thu, 27 Jan 2022 | ₹2.9t | ₹2.0t | ₹207.1b | 38x | 14x | 1.4x |
| Sat, 25 Dec 2021 | ₹2.7t | ₹2.0t | ₹204.7b | 23.4x | 13x | 1.3x |
| Mon, 22 Nov 2021 | ₹2.8t | ₹2.0t | ₹204.6b | 21.5x | 13.8x | 1.4x |
| Wed, 20 Oct 2021 | ₹3.2t | ₹2.0t | ₹226.3b | 19.2x | 14.2x | 1.6x |
| Fri, 17 Sep 2021 | ₹2.7t | ₹2.0t | ₹226.3b | 15.7x | 11.7x | 1.3x |
| Sun, 15 Aug 2021 | ₹2.4t | ₹2.0t | ₹226.3b | 15.1x | 10.7x | 1.2x |
| Thu, 10 Jun 2021 | ₹2.1t | ₹2.0t | ₹209.8b | 13.2x | 10x | 1.1x |
Price to Earnings Ratio
10x
Current Industry PE
- Investors are optimistic on the Indian Renewable Energy industry, and appear confident in long term growth rates.
- The industry is trading at a PE ratio of 21.8x which is higher than its 3-year average PE of 15.7x.
- The 3-year average PS ratio of 2.1x is lower than the industry's current PS ratio of 4.0x.
Past Earnings Growth
- The earnings for companies in the Renewable Energy industry have grown 40% per year over the last three years.
- Revenues for these companies have grown 17% 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 Utilities industry?
| IN Market | -1.89% | |
| Utilities | 0.19% | |
| Renewable Energy | 0.56% | |
| Independent Power Producers and Energy Traders | 0.69% | |
| Renewable Energy | 0.31% | |
Industry PE
- Investors are most optimistic about the Renewable Energy industry which is trading above its 3-year average PE ratio of 34.3x.
- Analysts are expecting annual earnings growth of 19.2%, which is higher than its past year's earnings growth of 8.0% per year.
- Investors are most pessimistic about the Independent Power Producers and Energy Traders industry, although it looks like investor sentiment has improved given that it's trading above its 3-year average of 13.2x.
Forecasted Growth
- Analysts are most optimistic on the Renewable Energy industry, expecting annual earnings growth of 19% over the next 5 years.
- This is better than its past earnings growth rate of 8.0% per year.
- In contrast, the Independent Power Producers and Energy Traders industry is expected to see its earnings grow by 11% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| ADANIPOWER Adani Power | ₹755.80 | 6.9% +₹188.2b | 195.6% | PE15.2x | |
| NHPC NHPC | ₹107.25 | 4.7% +₹48.2b | 148.3% | PE29.7x | |
| 533148 JSW Energy | ₹612.35 | 2.1% +₹21.9b | 144.3% | PE62x | |
| 533122 RattanIndia Power | ₹19.18 | 25.9% +₹21.2b | 454.3% | PE1.2x | |
| 513683 NLC India | ₹236.65 | 1.5% +₹5.0b | 155.6% | PE17.7x |
