ReNew Energy Global (RNW) Soars 3.42% in Three Days, Hits 2025 High on Strong Earnings

ReNew Energy Global (RNW) shares surged 0.76% today, marking the third consecutive day of gains, with a cumulative increase of 3.42% over the past three days. The stock price reached its highest level since February 2025, with an intraday gain of 1.82%.

The strategy of buying ReNew Energy Global (RNW) shares after they reached a recent high and holding for 1 week yielded moderate returns over the past 5 years, with a maximum drawdown and relatively stable annualized returns.

Maximum Drawdown: The maximum drawdown during the backtested period was -10.64%, which occurred in 2024. This indicates that while the strategy could generate positive returns, it was not immune to market downturns.

Annualized Returns: The annualized returns for the strategy were approximately 4.5% over the past 5 years. This is a modest return, suggesting that while the strategy provided some growth, it may not have outpaced the broader market or other investment strategies in every aspect.

Comparison with Market: To fully assess the strategy's performance, it would be beneficial to compare these returns to a benchmark, such as the NASDAQ Composite or a relevant renewable energy index. Without this comparison, it's difficult to determine if the returns are competitive or underperforming.

In conclusion, while the strategy of buying RNW shares after they reached a recent high and holding for 1 week showed some resilience and generated modest returns, it may not have been the most advantageous approach for maximizing gains in the dynamic renewable energy sector. Investors should consider their risk tolerance, investment horizon, and market conditions when evaluating such a strategy.

Analysts have shown a positive outlook on ReNew Energy Global. On May 9, Bernstein analyst Nikhil Nigania maintained a Buy rating on the company and set a price target of $8.80. This rating suggests that the analyst community is optimistic about the company's future prospects, which could influence investor sentiment and drive the stock price higher.

ReNew Energy Global recently secured a $100 million investment from BII to expand its solar operations in India. This significant investment is expected to enhance the company's growth prospects, potentially leading to a positive impact on its stock price. The infusion of capital will likely support the company's expansion plans and operational efficiency, further bolstering investor confidence.

In its Q3 2025 earnings report, ReNew Energy Global demonstrated strong financial performance. The company's operating portfolio grew to 10.8 gigawatts, representing a 26% year-on-year increase. Additionally, the company reported expanded EBITDA margins, indicating improved profitability. This robust financial performance is likely to positively influence the stock price, as investors recognize the company's ability to generate sustainable growth and profitability.