LarryWink
Tough question though a good one!
Agree that Green Hydrogen is the end product and renewable energy is the foundation and so the game.starts with Solar and Wind.
NHPC , SJVN are already discovered stories… if you go through this thread and the other threads on sjvn and nhpc , 1-2 yrs back these names were discussed and there were few takers…it was languishing @ 30 level when I was mopping up to build my green energy portfolio.
But today , everybody is chasing. everyone wants to buy at any price and I am happily exiting partially with profit to recover my capital.
Both the stocks have moved up only due to bulging order book on renewables mainly from Govt undertakings but this needs to be converted in to cash and it will take years… if people are ready to wait for 3-5 years , may be some more steam is still left.
Coming back to your point, i am staying away from little known pvt small cap midcap stocks/ MSME, because with so much competition and fast changing technology, i don’t know how they would perform in near term- given the fact that we are still at the early stage of energy transition.
However, well known large pvt/ PSU companies would be able to adopt to fast changing technology. No wonder, Investors have realised this and hence the rally on PSU energy basket - be it NHPC,SjVN, NTPC, power grid to name a few including the NBFC power PSU’s. The oil and Gas PSU are also moving up because everyone is into energy transition.
As a test case, please go through the post on “Best Green energy stocks to buy in India 2024 for portfolio investment” posted yesterday posted above in this thread.
Take the stocks one by one and go to screener to verify financials parameters , and other relevant parameters , you will get your answer.
To put it in one sentence , “some of these
companies are still struggling and though future looks bright , present is bleak” cash flow negative,. i am not comfortable to invest in these kind of stocks when there are large/ mid cap pvt companies/ PSU’s with proven financials are giving 3x,4x returns in a year.
i am not saying that all are going to be bad …some may do well also. so, if you have risk taking ability and you have an art of identifying such companies, go ahead and invest.
This is my personal.view, you should do your own assessment before investing in any renewable stocks.
If I come across any detailed study on your topic , I will be glad to share in the thread .
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