Get insights on thousands of stocks from the global community of over 7 million individual investors at Simply Wall St.
ReNew Energy Global (NasdaqGS:RNW) has drawn investor attention after recent share price softness, with the stock showing negative returns over the past week, month, past 3 months, year to date, and past year.
The company focuses on power generation from wind, solar, hydro, transmission, and manufacturing activities in India, reporting annual revenue of ₹129,449 and net income of ₹12,113, with annual revenue and net income growth rates of 17.01% and 26.91% respectively.
See our latest analysis for ReNew Energy Global.
Recent trading suggests momentum has been fading, with a 30 day share price return of 5.41% and a year to date share price return of 13.48%. At the same time, the 1 year total shareholder return of 17.96% and 5 year total shareholder return of 49.15% highlight how recent weakness fits into a longer period of pressure on holders.
If you are comparing ReNew with other clean energy names, it can help to widen the lens and see how the wider power grid opportunity is priced using the 27 power grid technology and infrastructure stocks
With a US$5.07 share price, a value score of 4, and a sizeable 57% discount to the average analyst target of about US$7.98, the key question is whether this signals a buying opportunity or if markets already reflect future growth.
With a fair value estimate of $7.98 against the last close at $5.07, the most followed narrative frames ReNew as materially discounted, hinging on long term contract growth and manufacturing scale.
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.
Read the complete narrative. Read the complete narrative.
Curious what earnings path supports that gap between price and fair value? The story leans on compounded revenue growth, firmer margins, and a future profit multiple that still sits below many peers. The full narrative spells out how those elements fit together.
Analysts behind this narrative also apply a discount rate of 13.43% to bring those future earnings back to today, so this view explicitly prices in risk and the cost of capital rather than relying on a simple comparison of current profits.
Result: Fair Value of $7.98 (UNDERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts.