2 years back, everyone wanted to buy solar stocks.
Back then each of the solar stock used to trade at >50x its earnings. Some even at 100-200x pe.
A lot of people came to me and asked in 2023-24, whether they should buy solar stocks and I said NO. Valuations were expensive.
2-3 years down the line, the valuations gave improved significantly.
A lot of solar stocks are down 30-50% from their peaks.
And most are now available at 20-30x Pe. Despite strong tailwinds.
These are the days one should accumulate solar businesses. The valuations are comfortable. The order books are strong. The future profits growth prospects too strong.
Now the margin of safety is good.
Hence, I added fresh positions today in solar space. With 500GW renewables energy target by Indian Government in sight, Solar stocks should do well going forward.
