Value investing is all about spotting the areas/ players which can yield better results in the near future but as of now today those areas/ players are low valued. Based on the same priniciples I found Wind energy segment worth focusing.
Looking at the commitment we as a country have in terms of reducing the carbon emission, Wind power project are turning to be a lucrative investment avenues and to add more government is announcing more perks in terms of tax holidays, commitment of purchasing power generated and flexible tariff. (Refer Govt to give incentive to wind power producers.)
Fossil fuels are the source for 70% of 90,000 MW installed capacity for electricity generation, Hydro-electricity contributes about 25%, and the remaining is mostly from nuclear power plants (NPPs).
Current stocks of Fossil fuels in India are not sufficient enough to suffice our needs of power (about 70% oil is imported), with currency getting dearer and government imposing emission norms (It is accepted that Indian power plants are highly polluting Refer CO2 emission by Indian power plants increases) the cost of per unit of power generated through fossil fuel will be compatible with non-conventional energy.
So I believe this is the right time to do a Value Investing and initiate a Power project that is eco friendly having early breakeven and having subsidiary projects of livestock farming, organic farming and carbon credit trading.
Image source: http://www.cedarcapital.ie/
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