A 5,800% Renewables Stock Boom Has Some Indian Investors Worried

  • Country’s net-zero plan in November 2021 kickstarted gains
  • Skyrocketing stock returns reminiscent of US boom in 2020-2021
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India’s renewable energy stocks have enjoyed a scorching rally for the past two years as retail buyers pile in, but their extended valuations are flashing warning signs.

SG Mart Ltd., a Gujarat-based solar and wind energy producer, has soared over 5,800% since November 2021 — when Prime Minister Narendra Modi announced that India aimed to boost clean energy to more than two-thirds of overall capacity. Gensol Engineering Ltd. has rallied more than 3,200%, Zodiac Energy Ltd. 1,000% and Waaree Renewable Technologies Ltd. 1,800% in that same period.