Retail investors to stay cautious, focus on valuation and assess the debt and profitability ratios before investing.

Mohit Mittal, Global Head, Sell-side research, Acuity Knowledge Partners, shares his insights on how retail investors are ignoring the classic signs of a bubble as valuations of smaller renewable energy companies continue to defy gravity. This has created a frothy market where the earnings of these stocks are unable to justify the prices they are trading at. He urges retail investors to stay cautious, focus on valuation and assess the debt and profitability ratios before investing.