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ReNew Energy Global (RNW)
NASDAQ:RNW
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ReNew Energy Global
(NASDAQ:RNW)
62Neutral
Positive Factors
Financial Performance
The management raised mid-term adjusted EBITDA guidance due to more operational gigawatts and cost optimization.
Future Growth Potential
The company still has ~6GW of bids won in pipeline for which PPAs are yet to be signed, showing potential for future revenue growth.
Valuation
The stock is considered attractive as it trades at a 60% discount to recently listed peers.
Negative Factors
Cost and Performance Challenges
Higher costs and weaker wind have led to reduced FY25/26/27 EBITDA estimates.
Debt
Net debt has increased with a net debt/EBITDA ratio of 9.6x.
Revenue
Revenue is expected to be below consensus due to weaker wind performance.
ReNew Energy Global (RNW) vs. S&P 500 (SPY)
Market Cap
$2.12B
Dividend YieldN/A
Average Volume (3M)987.88K
Price to Earnings (P/E)87.3
Beta (1Y)0.56
Revenue Growth-1.77%
EPS Growth-41.65%
CountryUS
Employees3,988
SectorUtilities
Sector Strength92
IndustryRenewable Utilities
Share Statistics
EPS (TTM)0.07
Shares Outstanding244,266,830
10 Day Avg. Volume608,418
30 Day Avg. Volume987,884
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)3.24
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$8.21Price Target Upside35.26% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
ReNew Energy Global Business Overview & Revenue Model
Company DescriptionReNew Energy Global Plc generates power through non-conventional and renewable energy sources in India. The company operates through Wind Power and Solar Power segments. It develops, builds, owns, and operates utility scale wind and solar energy projects, as well as distributed solar energy projects that generate energy for commercial and industrial customers. The company also provides engineering, procurement, and construction services; operation and maintenance services; consultancy services; and sells renewable energy certificates. As of March 31, 2022, its portfolio consisted of 10.69 GW of wind and solar energy projects, hydro, firm power projects, and distributed solar energy projects, of which 7.57 GW projects were commissioned and 3.12 GW were committed. ReNew Energy Global Plc was founded in 2011 and is based in London, the United Kingdom.
How the Company Makes MoneyReNew Energy Global makes money primarily through the generation and sale of electricity from its renewable energy projects. The company's key revenue streams include long-term power purchase agreements (PPAs) with government bodies and private entities, which provide a stable and predictable revenue base. ReNew Energy also earns income through renewable energy certificates and incentives provided by the government to promote green energy. Strategic partnerships with technology providers and financial institutions further support its growth and operational efficiency. Significant factors contributing to its earnings include its expanding portfolio of wind and solar projects and its ability to leverage economies of scale in the renewable energy sector.
ReNew Energy Global Financial Statement Overview
Summary
ReNew Energy Global shows robust revenue growth and operational efficiency with strong EBIT and EBITDA margins. However, the company faces challenges in profitability and cash flow due to high leverage and capital expenditures. The balance sheet indicates a highly leveraged structure, posing potential risks.Income Statement
ReNew Energy Global has demonstrated a significant improvement in its financial performance over recent periods. The TTM (Trailing-Twelve-Months) revenue growth is notable, increasing from the previous year. The Gross Profit Margin stands impressively high, indicating effective cost management. However, the Net Profit Margin remains a concern, as profitability is relatively low due to substantial operating and financing costs. The EBIT and EBITDA margins show strong operational efficiency, reflecting the company's ability to generate earnings from operations.72
Positive
Balance Sheet
The company maintains a high Debt-to-Equity Ratio, indicating a leveraged capital structure, which might pose risks if not managed properly. On the positive side, the Equity Ratio suggests a fair portion of assets financed by equity, reflecting moderate financial stability. Return on Equity is modest, highlighting challenges in generating returns for shareholders from equity investments.68
Positive
Cash Flow
ReNew Energy Global faces challenges with negative Free Cash Flow, indicating that capital expenditures exceed operating cash inflows, potentially impacting liquidity. The Operating Cash Flow to Net Income ratio is healthy, suggesting strong cash earnings relative to accounting profits. However, the Free Cash Flow to Net Income ratio is negative, indicating cash flow issues related to financing and investment activities.59
Neutral
| Breakdown | |||||
| TTM | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 86.32B | 81.32B | 78.22B | 59.35B | 48.19B | 48.41B | Gross Profit |
| 82.00B | 77.47B | 71.27B | 59.02B | 47.76B | 47.88B | EBIT |
| 52.59B | 72.71B | 47.14B | 73.33B | 31.57B | 32.75B | EBITDA |
| 72.80B | 68.75B | 57.45B | 37.98B | 42.63B | 44.05B | Net Income Common Stockholders |
| 1.32B | 3.40B | -5.03B | -16.20B | -8.00B | -2.82B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 31.65B | 51.90B | 80.57B | 81.30B | 47.24B | 44.41B | Total Assets |
| 201.27B | 873.93B | 748.11B | 641.34B | 492.05B | 479.56B | Total Debt |
| 120.77B | 655.66B | 516.43B | 391.67B | 351.65B | 334.13B | Net Debt |
| 93.63B | 628.64B | 478.25B | 363.29B | 330.97B | 321.04B | Total Liabilities |
| 144.42B | 752.24B | 628.37B | 514.97B | 427.31B | 400.71B | Stockholders Equity |
| 53.72B | 105.22B | 106.80B | 118.44B | 62.08B | 74.53B |
| Cash Flow | Free Cash Flow | ||||
| -44.48B | -84.91B | -20.79B | -47.44B | 7.60B | -4.21B | Operating Cash Flow |
| 66.24B | 68.93B | 62.57B | 42.39B | 32.08B | 35.09B | Investing Cash Flow |
| -110.83B | -162.53B | -71.98B | -124.75B | -17.41B | -53.72B | Financing Cash Flow |
| 10.16B | 82.42B | 19.11B | 90.04B | -7.08B | 21.61B |
ReNew Energy Global Technical Analysis
Negative
6.07
Price Trends
6.33
Negative
6.35
Negative
6.15
Negative
Market Momentum
-0.10
Positive
34.77
Neutral
8.02
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RNW, the sentiment is Negative. The current price of 6.07 is below the 20-day moving average (MA) of 6.10, below the 50-day MA of 6.33, and below the 200-day MA of 6.15, indicating a bearish trend. The MACD of -0.10 indicates Positive momentum. The RSI at 34.77 is Neutral, neither overbought nor oversold. The STOCH value of 8.02 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RNW.
ReNew Energy Global Risk Analysis
ReNew Energy Global disclosed 63 risk factors in its most recent earnings report. ReNew Energy Global reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
ReNew Energy Global Peers Comparison
Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $148.51B | 21.39 | 14.24% | 2.93% | 26.91% | -6.43% | |
70 Outperform | $9.71B | 33.09 | 6.15% | 5.09% | -8.26% | ― | |
68 Neutral | $7.79B | 79.61 | 11.30% | ― | -41.92% | -76.24% | |
65 Neutral | $12.17B | 16.15 | 5.32% | 4.37% | 5.50% | -9.06% | |
62 Neutral | $2.12B | 87.28 | 2.00% | ― | -1.77% | -41.65% | |
51 Neutral | $980.79M | ― | -116.01% | ― | -68.86% | -4917.87% | |
46 Neutral | $1.49B | ― | -73.12% | ― | -9.83% | -71.44% |
* Utilities Sector Average
Performance Comparison
RNW
ReNew Energy Global
6.07
0.09
1.51%
ENPH
Enphase Energy
58.77
-62.01
-51.34%
NEE
NextEra Energy
72.14
10.16
16.39%
SEDG
SolarEdge Technologies
15.42
-53.35
-77.58%
RUN
Sunrun
6.59
-5.53
-45.63%
BEPC
Brookfield Renewable
28.28
5.16
22.32%
ReNew Energy Global Earnings Call Summary
Earnings Call Date: Feb 18, 2025 | % Change Since: -10.21% | Next Earnings Date: Jun 4, 2025
Earnings Call Sentiment Positive
The earnings call presented a generally positive outlook with significant growth in ReNew's operational and committed portfolios, alongside successful cost optimization efforts and manufacturing expansion. However, challenges such as lower wind performance, adverse weather impacts on EBITDA, and delayed regulatory approvals present notable concerns.Highlights
Significant Increase in Operational Portfolio
ReNew reported a 26% year-over-year increase in operational megawatts, with the total operational portfolio reaching 10.8 gigawatts. This reflects strong execution capabilities in project commissioning.
Strong Growth in Committed Portfolio
The total committed portfolio grew by 27% year-on-year to 17.4 gigawatts, with an additional 1.1 gigawatts since the last earnings call.
Cost Optimization Success
Achieved a 500 basis points improvement in margins due to cost optimization initiatives, resulting in lower provisions and improved cash flows.
Recognition for ESG Efforts
ReNew was recognized as India's highest-rated pure-play renewable energy company by S&P, highlighting its commitment to sustainability and ESG practices.
Manufacturing Expansion
ReNew's manufacturing facility is producing around 10 megawatts per day of modules and has secured an order book of about 2 gigawatts, doubling in a quarter.
Lowlights
Lower Wind Performance
Wind PLFs trended lower this year compared to last year, resulting in a reduction of the FY25 EBITDA guidance range due to weaker than expected wind performance.
Impact of Weather on EBITDA
Adverse weather led to a revenue reduction relative to guidance of INR1.6 billion for the quarter, impacting the FY25 adjusted EBITDA guidance.
Delayed Regulatory Approvals
600 megawatts of the targeted megawatt installations are subject to timely regulatory approvals and transmission infrastructure build-out.
Challenges with PPA Signings
There is a backlog of unsigned PPAs, which remains a challenge despite progress in signing significant portions in the past.
Company Guidance
During the ReNew 3Q 2025 earnings call, several key metrics and updates were highlighted. ReNew reported a year-to-date commissioning of approximately 1.3 gigawatts, with an additional 150 megawatt-hours of batteries, leading to a total operational portfolio of 10.8 gigawatts, marking a 26% increase year-on-year. The committed portfolio stands at 17.4 gigawatts, representing a 27% growth from the previous year. Despite facing challenges with wind power load factors (PLFs) trending lower, impacting the FY25 EBITDA guidance to INR 74-78 million, and cash flow to equity guidance to INR 11-13 billion, ReNew remains optimistic. The company has secured 3.9 gigawatts of renewable energy capacity and continues to expand its manufacturing capabilities, producing about 10 megawatts of modules per day and securing an external order book of 2 gigawatts. Furthermore, ReNew has been recognized as India's highest-rated pure-play renewable energy company by S&P, underscoring its commitment to ESG practices. The company also addressed operational efficiency improvements, with margins improving by 500 basis points, and a reduction in DSOs by 22 days, enhancing its financial stability.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.