Why NTPC Green, Adani Green, ACME Solar's eye-popping valuations need a reality check

To err is human but not for solar power producers. They simply cannot afford any mistakes. The stakes are too high. By that we mean both investor expectations and their actual shareholding in these companies. NTPC Green Energy, Adani Green, and ACME Solar are grabbing headlines for their sky-high valuations. NTPC Green, for instance, continues to climb despite debuting at a staggering P/E of 290 times. Adani Green's trading at 160 times, while ACME Solar is holding a P/E of 24 times even though it's actually loss-making (if we exclude other income and extraordinary gains). What's fueling the market frenzy? 1) Roaring demand for renewable energy India's energy landscape is undergoing a seismic shift. In the past five years, the country's renewable energy capacity has grown 9 per cent annually, ballooning from 118 GW in FY18 to 201 GW in FY23. This isn't just impres