RNW Stock Intrinsic Value – RENEW ENERGY GLOBAL Reports Q3 Earnings Results for FY2023, as of December 31 2022.
February 22, 2023
Earnings Overview
On February 17th 2023, RENEW ENERGY GLOBAL ($NASDAQ:RNW) reported their earnings results for the third quarter of FY2023, which was to December 31st 2022. The revenue for this period was INR -4.0 billion, representing a 37.1% growth from the same quarter the previous year. Net income reached INR 13.2 billion, seeing a 10.7% rise from the previous year.
Transcripts Simplified
Renew Energy Global reported positive results in their third quarter for FY 2023, adding 66 megawatts and signing 282 megawatts in PPAs. Revenues from customers rose 24% year-on-year in the first nine months of fiscal 2023. EBITDA increased 18% and cash flow to equity increased 11%.
Cash flow from operations nearly doubled to $261 million and DSO improved by over two and a half months compared to the prior fiscal. Past due receivables from state discoms have also been paid or are in the process of being paid.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for RNW. More…
| Total Revenues | Net Income | Net Margin |
| 69.85k | -7.62k | -10.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for RNW. More…
| Operations | Investing | Financing |
| 69.2k | -77.36k | 712 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for RNW. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 681.05k | 563.52k | 290.75 |
Key Ratios Snapshot
Some of the financial key ratios for RNW are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 11.2% | -4.5% | 62.6% |
| FCF Margin | ROE | ROA |
| -15.7% | 24.7% | 4.0% |
Stock Price
The stock opened at $6.0 and ended the day at a lower $5.6, representing a 3.8% decrease from the prior closing price of $5.8. The quarterly earnings report provides insights into the performance of the company and its strategy for sustainable growth. RENEW ENERGY GLOBAL’s quarterly report highlights their strong commitment to the renewable energy industry, their considerable investments in projects to reduce carbon emissions, and their collaborations with key stakeholders and governments to promote clean energy solutions. They have reported positive trends in the renewable energy market, which largely attributed to their growth in the last quarter. The quarterly report further indicated that the company’s focus on innovation and technology has led to improved efficiency and increased customer satisfaction.
Their investments in research and development have allowed them to stay ahead of industry trends and remain competitive in the global market. These results are part of RENEW ENERGY GLOBAL’s strategic long-term plan to promote clean energy solutions, reduce environmental footprint, and ensure sustainable growth. They are confident that their efforts will lead to improved financials and sound returns for their stakeholders in the upcoming quarters. Live Quote…
Analysis – RNW Stock Intrinsic Value
Our team at GoodWhale recently conducted an analysis of RENEW ENERGY GLOBAL’s wellbeing, and have determined the intrinsic value of their stock to be around $9.2. This was calculated using our proprietary Valuation Line, which takes into account various factors such as cash flow and quality of investments. At the moment, RENEW ENERGY GLOBAL’s stock is being traded at $5.6, which is lower than its intrinsic value. This means that it is currently undervalued by 38.9%, presenting a great opportunity for investors who recognize this undervalued stock. More…
Peers
As the world increasingly looks for cleaner energy sources, many companies are vying for a piece of the renewable energy pie. ReNew Energy Global PLC is one such company, and it competes against others such as Karma Energy Ltd, Westbridge Renewable Energy Corp, and Shinfox Energy Co Ltd. All of these companies are looking to provide renewable energy solutions that are both effective and affordable.
– Karma Energy Ltd ($BSE:533451)
Karma Energy Ltd is an Indian renewable energy company with a market cap of 366.77M as of 2022. The company has a Return on Equity of 9.92%. Karma Energy Ltd is involved in the development, construction, and operation of renewable energy projects in India. The company has a portfolio of solar, wind, and biomass projects.
– Westbridge Renewable Energy Corp ($TSXV:WEB)
Westbridge Renewable Energy Corp is a Canadian renewable energy company. The company has a market capitalization of 38.54 million as of 2022 and a return on equity of -46.38%. The company operates in the wind, solar, and hydroelectric power generation sectors. The company was founded in 2006 and is headquartered in Calgary, Alberta, Canada.
– Shinfox Energy Co Ltd ($TWSE:6806)
Shinfox Energy Co Ltd is a Japanese company that specializes in the development and operation of renewable energy power plants. The company has a market cap of 13.4 billion as of 2022 and a return on equity of 2.33%. Shinfox Energy Co Ltd is a publicly traded company listed on the Tokyo Stock Exchange.
Summary
RENEW ENERGY GLOBAL reported results for FY2023Q3 on February 17th 2023, with revenue increasing 37.1% year-over-year to INR -4.0 billion and net income increasing 10.7% year-over-year to INR 13.2 billion. Despite these strong results, stock prices declined the same day. This could indicate that investors may be concerned about the -4.0 billion in revenue or are expecting even stronger results in the future.
Investors should further analyze potential risks before making a decision to invest in RENEW ENERGY GLOBAL. They should consider factors such as the industry outlook, competitors, management capabilities, and financial health before committing to any investment.
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