Adani Green: A Future Multibagger or a Big, Speculative Bubble - Views on News from Equitymaster

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  • Nov 26, 2020 - Adani Green: A Future Multibagger or a Big, Speculative Bubble

Adani Green: A Future Multibagger or a Big, Speculative Bubble podcast

Nov 26, 2020

Out of nowhere, Adani Green Energy is now the 17th or the 18th largest company in India by market value.

Bigger than most PSUs and up almost 10x in the last one year, the stock has really seen a meteoric rise.

Part of the sunrise industry of solar and wind energy, the company does have a few things going for it.

However, has the euphoria been overdone? Will the company continue to rise or is it all a big, speculative bubble that can burst any time?

I try to answer these questions in the video.

Do take a look.

Here's more on value investing:

Rahul Shah

Rahul Shah (Research Analyst), Managing Editor, Microcap Millionaires has led the team from the front in developing some of our most stringent and rewarding research processes. As per his own admission, the turning point in Rahul's life as a financial analyst came a few years back when he got introduced to the works of Warren Buffett and Charlie Munger. From Buffett, he understood the value of investing in good quality business with powerful moats and strong management teams. Charlie Munger on the other hand inspired him to be a lifelong learner and use mental models in order to arrive at the crux of matters across most disciplines. Rahul firmly believes that in order to be successful at investing, you have to do the big things right and possess a great temperament and a contrarian streak.

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5 Responses to "Adani Green: A Future Multibagger or a Big, Speculative Bubble"

Rahul

Nov 30, 2020

Thanks for sharing your views in a clear and simple manner. I was not aware of the huge surge in Adani Green but your analysis was important to understand why it still does not make sense-as of now-to invest in that sunrise industry. Not completely convinced on your logic of buying ONGC as investors are likely to still shy away from putting too much of their money in a dying industry, so even if the intrinsic value is high and will remain higher for some years to come, it's unlikely to rise too much unless all companies in sunrise industry really fail dramatically and we just revert back to Oil and Gas- an unlikely scenario. Certainly worth a watch on how Adani Green is doing on its financials over the next few years and vs its own commitments!

Like (1)

Diwakar Srivastava

Nov 27, 2020

Very rational and realistic analysis. Absence of journalistic and emotional aspect makes your analysis superior.

Like (1)

Yatin Parikh

Nov 27, 2020

Instead of comparing Adani Green with ONGC (which is not into solar powerand has been a wealth destroyer), it would have been prudent to compare with a similar company in same industry, namely Sterling and Wilson Solar, which is trading below its fair value.

Like (1)

amar galliara

Nov 27, 2020

i definitely agree with this content, and i do believe that ONGC has still good numbers as compared to Adani Green. Even i too was wondering why is the share moving up so rapidly, because it just does not make sense. thanks for giving your professional feedback. it at least confirms my thinking.

Like (2)

Manohar Subramaniam

Nov 26, 2020

Dear sir,

I do agree, but still it's a break or build like stock, like Amazon in the beginning did not have the value of today and questioned ... but those who invested are millionaires and some are billionaires, so technically and fundamentally you are right,but it's in a project with future and in hands of a well known citizen with other companies of Adani group, I feel we have to invest less and keep monitoring

Like (4)
  
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