Solar Industry: Bright Prospects, But Valuation Clouds Ahead

When we talk about sunrise sectors, which refer to emerging segments of the economy in the early stages of growth with significant potential for expansion and substantial returns on investment, renewable energy, especially solar energy, has always been a prominent name. Investors who placed their bets on solar stocks in the last few years have witnessed extraordinary wealth creation, fuelled by global trends, policy changes, advancements in technology, and the Indian government’s robust support for the sector, particularly given the challenges and environmental disadvantages associated with fossil fuels.