Company like waaree energy, All defence PSU are dependent on Govt Capex program, stock price can even reflect business of future 6 years assuming market leadership, stock price may sky rocket and PE will take a back seat as analysts have some data for DCF due to 350 GW solar addition by 2030. These type of stock may remain in a long time correction as more capacities are floated in coming years and future prospects start dimming. Its like too many market participants chasing one golden egg. You will never know when time correction will start and in a longer term average return ratios will dilute drastically. See the example of Dmart, Britannia, HUL. I will cooly avoid waree energy at this moment. Solar panel is a commodity and easy to build capacities. Average justified PE can’t be more than 15.
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