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ReNew Energy Global (NasdaqGS:RNW) is back in focus after its latest earnings update, which showed higher quarterly revenue, a sharply smaller net loss, and a move from loss per share to positive earnings.
See our latest analysis for ReNew Energy Global.
Despite stronger Q3 numbers and the recent bond raising, ReNew Energy Global’s share price has had a mixed run. The 7 day share price return is 1.71%, while the 90 day share price return shows a 28.67% decline and the 1 year total shareholder return reflects an 18.07% decline. This suggests recent momentum has faded even as longer term business metrics evolve.
If this earnings update has you reassessing opportunities in clean and power infrastructure, it could be a good moment to scan 25 power grid technology and infrastructure stocks as a starting list of ideas to research further.
So with earnings improving, capacity higher and the share price still well below its recent peaks, is ReNew Energy Global quietly undervalued here or is the market already pricing in its future growth potential?
With ReNew Energy Global last closing at $5.35 and the most followed narrative pointing to a fair value near $7.95, the gap between price and projected worth is catching attention.
Expansion and ramp-up of ReNew’s manufacturing business, especially with marquee strategic investments (e.g., from British International Investments) and a new 4 GW TOPCon facility under construction, diversify revenue streams and lower input costs, improving earnings visibility and profitability.
Curious what earnings profile needs to sit behind that fair value? This narrative leans heavily on faster top line growth, firmer margins, and a tempered future earnings multiple. The mix is not what many investors might expect for a utility linked name.
Result: Fair Value of $7.95 (UNDERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts.
However, this hinges on execution. Tougher bidding that squeezes margins or project delays in areas such as land and transmission could quickly undermine the upbeat earnings story.
Find out about the key risks to this ReNew Energy Global narrative.
That 33% “undervalued” fair value near $7.95 leans on long term growth assumptions, but the current P/E of 20.9x tells a more cautious story. It sits well below the US renewable energy average of 57.2x, yet above the global sector at 16.3x and the fair ratio of 11.4x. This suggests the market could still compress the multiple if growth stalls. Does that leave more upside, or more room for disappointment if expectations cool?
