Why the gold rush in small- and mid-cap RE stocks will end badly

Retail investors are ignoring the classic signs of a bubble as valuations of smaller renewable energy companies continue to defy gravity.

In March, popular stockpicker Basant Maheshwari went on a cautionary rant on his YouTube channel about the run-up in small- and mid-cap renewable energy stocks, with scant regard for their fundamentals. 

“These stocks only do well in a bull market. Jab mandi aati hai to inko koi paani bhi nahi puchta. (In a bear market, no one will remember these stocks),” he said. “Valuations are out of this world. There are almost no institutional investors in these stocks. Have retail investors become so smart that they think they understand these stocks better than all FIIs and DIIs?”

Maheshwari joins …