Even in the past year, it is rallied more than 70%
The meteoric rise is owing to multiple reasons
- Focus of the Indian Government of Adopting Cleaner Fuel & Technologies in order to reduce the emissions and stick to the commitments made under UNSDG and COP26
- Increase in the portfolio size of the Adani Green with regards to Solar Deployments in an organic & inorganic manner
- Among the few players in the listed space(other big player being Tata Power) having the scale, expertise to execute huge projects within timeline and operate profitably
Considering this, holding on the stock if bought at lower levels make sense
Also, with an exorbitantly high PE ratio, the premium though seemingly justifiable is hard to swallow.
The stock needs a suitable correction before entry. Buying at these levels can be deadly for retail buyers with a long term horizon as value needs to catch up with price.
Hope this helps