March 6, 2025
Top 10 Stock ReNew Energy Sell Recommendation
How to read the ranks
For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".
Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".
Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.
Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.
(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).
(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.
Snapshot: ReNew Energy – Top 10 Stock in Wind Energy
ReNew Energy is listed as a top 10 stock on March 06, 2025 in the market index Wind Energy because of its high performance in at least one of the Obermatt investment strategies. All consolidated Obermatt Ranks are below-average. Based on the Obermatt Method, an investment in the company is not advisable today. Based on the Obermatt 360° View of 1 (1% performer), Obermatt issues an overall sell recommendation for ReNew Energy on March 06, 2025.
Snapshot: Obermatt Ranks
| Country | India |
| Industry | Renewable Electricity |
| Index | Wind Energy, NASDAQ |
| Size class | Large |
When Obermatt identifies the Top 10 stocks in a market, it’s based on a certain investment strategy. The best performing stocks usually aren’t the ones that everyone is talking about (those are often "over-priced" and have low Value ranks).
For each investment strategy, we provide you with more detailed analysis and our recommendation. You see the ranks of the top 10 stocks ranked by that particular investment strategy (360° View, Sentiment, Value, Growth, Safety and Combined Financial Performance).
360° View: Obermatt 360° View ReNew Energy Sell
| 360 METRICS | March 6, 2025 | |||||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 10 |
|
||||||
| GROWTH | ||||||||
| GROWTH | 26 |
|
||||||
| SAFETY | ||||||||
| SAFETY | 1 |
|
||||||
| SENTIMENT | ||||||||
| SENTIMENT | 10 |
|
||||||
| 360° VIEW | ||||||||
| 360° VIEW | 1 |
|
||||||
ANALYSIS: With an Obermatt 360° View of 1 (better than 1% compared with alternatives), overall professional sentiment and financial characteristics for the stock ReNew Energy are critical, mostly below average. The 360° View is based on consolidating four consolidated indicators, with all four indicators below average for ReNew Energy. The consolidated Value Rank has a low rank of 10 which means that the share price of ReNew Energy is on the higher side compared with typical size in indicators such as revenues, profits, and invested capital. This means the stock price is higher than for 90% of alternative stocks in the same industry. The consolidated Growth Rank also has a low rank of 26, which means that the company exhibits below-average growth momentum when looking at financial metrics such as revenue, profit, and invested capital growth as well as stock returns. This means that growth is lower than for 26% of competitors in the same industry. The consolidated Safety Rank has a riskier rank of 1, which means that the company has a riskier financing structure than 99% comparable companies when looking at the amount of its debt, its refinancing requirements, and its ability to service debt. Finally, the consolidated Sentiment Rank has a low rank of 10, which means that professional investors are more pessimistic about the stock than for 90% of alternative investment opportunities. ...read more
RECOMMENDATION: With a consolidated 360° View of 1, ReNew Energy is worse than 99% of all alternative stock investment opportunities based on the Obermatt Method. This means that ReNew Energy shares are on the riskier side for investors. As all consolidated Obermatt Ranks are below-average, this is a risky stock investment proposition, especially since professional investor sentiment, the consolidated Obermatt Sentiment Rank, is also low at 10. The negative market view on ReNew Energy may stem from the high stock price (low value), the low level of growth, or the risky financing structures. That's several problems with no good news anywhere. Based on the current information, we don’t see any compelling arguments to make a case for this stock investment. The company may have a strong future which would justify the high stock price, but this is not confirmed by investor behavior today. While ReNew Energy may have a bright future, it is reflected in neither the financial indicators nor the market sentiment. ...read more
Sentiment Strategy: Professional Market Sentiment for ReNew Energy negative
ANALYSIS: With an Obermatt Sentiment Rank of 10 (better than 10% compared with alternatives), overall professional sentiment and engagement for the stock ReNew Energy is critical, mostly below average. The Sentiment Rank is based on consolidating four sentiment indicators, with three out of four metrics below average for ReNew Energy. Analyst Opinions are at a rank of 75 (better than 75% of alternative investments), which means that, currently, stock research analysts tend to recommend a stock investment in the company. This is a good sign, were it not for Analyst Opinions Change with a low rank of 8, which means that currently, stock research experts are changing their opinions for the worse. In other words, they are getting more critical of a stock investment in ReNew Energy. The Professional Investors rank is also low at 20, meaning that professional investors hold less stock in this company than in 80% of alternative investment opportunities. Pros tend to invest in other companies. Even worse, Market Pulse has a low rank of 15, which means that the current professional news and professional social networks are critical of this company (more negative news than for 85% of competitors). ...read more
RECOMMENDATION: With a consolidated Sentiment Rank of 10 (less encouraging than 90% compared with investment alternatives), ReNew Energy has a reputation among professional investors that is far below that of its competitors. There are several negative sentiment signals, with only the Analyst Opinions Rank above average. This could be a stock with a long reputation for being positive but where things are worsening. Most analysts may not see it yet, but some have, and the professionals are already quite pessimistic. Proceed with caution when investing in this stock. ...read more
Value Strategy: ReNew Energy Stock Price Value low
ANALYSIS: With an Obermatt Value Rank of 10 (worse than 90% compared with alternatives), ReNew Energy shares are significantly more expensive than comparable stocks. The Value Rank is based on consolidating four value indicators, with all four indicators below average for ReNew Energy. Price-to-Sales is 44 which means that the stock price compared with what market professionals expect for future profits is higher than 56% of comparable companies, indicating a low value concerning ReNew Energy's sales levels. Price-to-Book Capital (also referred to as market-to-book ratio) also has a low Price-to-Book Rank of 38, which means that both reliable company size indicators, sales, and invested capital cannot explain the high stock price of ReNew Energy. In addition, the two profit-related value indicators, Price-to-Profit (also referred to as price-earnings, P/E) with a low rank of 9 and Dividend Yield, which is lower than 99% of comparable companies, also make the stock more expensive compared with investment alternatives. ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 10, is a sell recommendation based on ReNew Energy's stock price compared with the company's operational size and dividend yields. How can market participants pay such a high price for ReNew Energy? One reason may be that the company is simply too popular. If enough people want a particular stock, its price can exceed reasonable levels. This is often the case for companies offering new and exciting products and everybody wants a piece of the action. Should you pay a lot for a hot stock such as ReNew Energy? It's risky, and even if the stock price continues to grow because of popular demand, it may return to more typical lower levels later. And that return can be sudden and quick, making it impossible for retail investors to exit on time. Sometimes, high prices are deserved. This is the case when it is justified to believe that the company will dominate a market with high profit margins. It has happened in the past for many technology companies and indeed for commercially successful pharmaceutical discoveries. Sometimes they last, sometimes, they get eaten alive. ReNew Energy may be such a type of stock. That would mean, retail investors should be careful, only considering investing a small part of their wealth in this exciting category and always being ready to lose more than half, if not all of the investment. ...read more
Growth Strategy: ReNew Energy Growth Momentum low
ANALYSIS: With an Obermatt Growth Rank of 26 (better than 26% compared with alternatives), ReNew Energy shows a below-average growth dynamic in its industry. There is limited momentum in this company. The Growth Rank is based on consolidating four value indicators, with half of the indicators below and half above average for ReNew Energy. Sales Growth has a rank of 100 which means that currently professionals expect the company to grow more than 100% of its competitors. Stock Returns are also above average with a rank of 52. But Capital Growth has only a rank of 11, which means that currently professionals expect the company to grow its invested capital less than 89% of its competitors. Profit Growth is also low, with a rank of only 4, which means that, currently, professionals expect the company to grow its profits below average. ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 26, is a hold recommendation for growth and momentum investors. This is a surprising picture, as the messages from the operating growth indicators of revenues, profits, and invested capital are mixed, while stock returns are above average. It may indicate new intellectual properties, such as brand improvement or a strong market position that shows in revenues but not in the capital. The low profit-growth rate may indicate an early phase where costs are still high, and revenues don't fully cover upfront investments or fixed costs. The positive investor outlook with a 52% peer outperformance is reaffirmed in this case which may be a good sign for an investment into a well-protected high-growth company. This fact needs to be confirmed by researching the company website and press. ...read more
Safety Strategy: ReNew Energy Debt Financing Safety risky
| SAFETY METRICS | March 6, 2025 | |||||||
|---|---|---|---|---|---|---|---|---|
| LEVERAGE | ||||||||
| LEVERAGE | 1 |
|
||||||
| REFINANCING | ||||||||
| REFINANCING | 1 |
|
||||||
| LIQUIDITY | ||||||||
| LIQUIDITY | 8 |
|
||||||
| CONSOLIDATED RANK: SAFETY | ||||||||
| CONSOLIDATED RANK: SAFETY | 1 |
|
||||||
ANALYSIS: With an Obermatt Safety Rank of 1 (better than 1% compared with alternatives), the company ReNew Energy has much riskier financing practices than comparable other companies, which means that their overall debt burden is significantly above the industry average. This doesn't mean that the business of ReNew Energy is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with all three metrics below average for ReNew Energy. Liquidity is at 8, meaning that the company generates less profit to service its debt than 92% of its competitors. This indicates that the company is on the riskier side when it comes to debt service. Even worse, Leverage is at a rank of 1, meaning the company has an above-average debt-to-equity ratio. It has more debt than 99% of its competitors. Finally, Refinancing is at a rank of 1 which means that the portion of the debt about to be refinanced is above average. It has more debt in the refinancing stage than 99% of its competitors. ...read more
RECOMMENDATION: With a consolidated Safety Rank of 1 (worse than 99% compared with alternatives), ReNew Energy has a financing structure that is significantly riskier than that of its competitors. This combination is rather dangerous in most situations. Only very promising companies with bright future outlooks and stellar reputations can operate with such risky financing.
Combined financial peformance: ReNew Energy Lowest Financial Performance
| COMBINED PERFORMANCE | March 6, 2025 | |||||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 10 |
|
||||||
| GROWTH | ||||||||
| GROWTH | 26 |
|
||||||
| SAFETY | ||||||||
| SAFETY | 8 |
|
||||||
| COMBINED | ||||||||
| COMBINED | 1 |
|
||||||
ANALYSIS: With an Obermatt Combined Rank of 1 (worse than 99% compared with investment alternatives), ReNew Energy (Renewable Electricity, India) shares have lower financial characteristics compared with similar stocks. Shares of ReNew Energy are low in value (priced high) with a consolidated Value Rank of 10 (worse than 90% of alternatives), show below-average growth (Growth Rank of 26), and are riskily financed (Safety Rank of 1), which means above-average debt burdens. ...read more
RECOMMENDATION: A Combined Rank of 1, is a sell recommendation based on ReNew Energy's financial characteristics. As the company ReNew Energy's key financial metrics all exhibit below-average performance, such as low value (Obermatt Value Rank of 10), low growth (Obermatt Growth Rank of 26), and risky financing practices (Obermatt Safety Rank of 1), it is a somewhat questionable stock investment, where the risk of paying too much for the shares is significant, unless the company has an exceptionally bright future. Such poor financial performance sometimes indicates that the company's business is all concentrated in some distant future. This is sometimes the case for high-tech or biotechnology companies. If they own properties that only provide cash flows in the future, the stock may look excessively expensive and risky today. In such cases, the Obermatt Method has limited value as it is based on facts we can observe today. If the facts are all in the future, stock investing becomes guesswork, and this should only be a driver in a limited number of investments that should only amount to a small fraction of a safe portfolio. ...read more
Obermatt Portfolio Performance
We’re so convinced about our research, that we buy our stock tips.
See the performance of the Obermatt portfolio.