India’s solar energy sector is bracing for significant short-term challenges as China moves to reduce export rebates on solar modules and components from 1 December.

The measure is expected to increase the cost of Chinese imports, leading to higher electricity tariffs in India.

This policy shift may open doors for long-term opportunities, particularly for domestic solar manufacturers striving to meet India’s renewable energy goals.

As the nation aims to balance its heavy reliance on Chinese imports with a vision for self-sufficiency, the rebate cut could indirectly strengthen India’s global competitiveness.

India’s 80% reliance on China for solar cells persists

Despite growing domestic capabilities in module production, India remains highly dependent on China for key upstream components like wafers and polysilicon.

Currently, 80% of India’s solar cell needs are met through Chinese imports.

This reliance is expected to persist until at least 2027, when local production capacities are anticipated to stabilise.

The absence of immediate alternatives leaves India vulnerable to the ripple effects of China’s rebate policy change, particularly in the short term.

While the government’s efforts to promote local manufacturing are gaining traction, achieving full independence from Chinese imports requires years of sustained investment and development.

The rebate cut could accelerate these initiatives, though challenges remain in meeting near-term demand.

Solar exports surge

India’s solar export market has seen exponential growth in recent years, positioning the country as a potential alternative to Southeast Asian manufacturers.

According to JMK Research, Indian PV module exports surged by over 23 times between FY2022 and FY2024.

This upward trajectory reflects India’s increasing ability to compete globally, especially as the US enforces strict tariffs on Chinese solar products.

China’s decision to reduce export incentives may further enhance India’s attractiveness as a reliable supplier in the global market.

The higher cost of Chinese exports could inadvertently align with India’s “Atmanirbhar Bharat” initiative, boosting domestic manufacturers’ competitiveness on the international stage.

Supply-demand gap threatens India’s renewable energy goals

While the export market offers lucrative opportunities, domestic supply remains a pressing concern.

India’s module production capacity is projected to reach 28GW by FY2025, falling short of the 30GW required to achieve the nation’s ambitious renewable energy targets.

The shortfall could delay small-scale projects, such as rooftop solar installations, which are critical for decentralising energy production.

Balancing the growing export demand with domestic needs poses a significant challenge for policymakers and industry stakeholders.

Experts warn that over-prioritising exports could exacerbate the supply-demand gap, jeopardising the progress of renewable energy initiatives within the country.

India’s localisation efforts

In response to the dependency on imports, the Indian government is actively encouraging the domestic production of wafers, ingots, and other key solar components.

These measures aim to create a self-sustaining solar manufacturing ecosystem that can mitigate the risks of over-reliance on international suppliers.

The road to self-sufficiency is long and requires not just policy support but also significant private investment.

China’s policy shift, while challenging in the short term, is seen by some as a catalyst for accelerating India’s transition to a global solar manufacturing hub.

However, ensuring that domestic supply keeps pace with rising demand remains a critical priority.

The future of India’s solar energy sector

China’s rebate reduction introduces a complex mix of challenges and opportunities for India’s solar energy sector.

In the short term, electricity tariffs are expected to rise, and supply bottlenecks may delay key projects.

Yet, the long-term implications could be transformative.

By making Chinese imports less competitive, India has a chance to establish itself as a leader in the global solar market while advancing its renewable energy goals.

As India navigates these challenges, the government’s focus on localisation and strategic investments will play a pivotal role in shaping the country’s solar future.

Striking the right balance between meeting domestic needs and capitalising on export opportunities will be key to ensuring sustainable growth in the sector.

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HSBC expects a “raft of stocks” to benefit from Southeast Asian investments in infrastructure, a slowing Indian economy, and China’s stimulus blitz in 2025.

In particular, the investment firm sees Kia Corp, Meituan, and Krishna Institute of Medical Sciences as high-quality, underappreciated names that are “best positioned to capture growth from these opportunities.”

Let’s take a look at what each of these three has in store for investors.

Kia Corp (KRX: 000270)

HSBC dubs Kia stock the “best value play for 2025” as investors are yet to fully appreciate just how competitive this Korean automaker is in EVs and hybrid vehicles space.

Its analyst Will Cho expects Kia to tap on its strong margin profile to launch more competitive and affordable electric vehicles next year. Kia opened its first factory focused on EV production in October.

The investment firm expects any potential weakness in the US due to Trump’s policies to be largely offset by market share gains in the EU region.

Will Cho’s buy recommendation on Kia shares coupled with a price target of 160,000 Korean won translates to a 64% upside from here.

Krishna Institute of Medical Sciences (NSE: KIMS)

HSBC expects Krishna Institute of Medical Sciences to benefit next year as Indians continue to invest in quality health care.

The investment firm sees KIMS as a “best-in-class small-cap” Asian stock that is particularly “well positioned to sustain healthy growth” rates over the long term.  

Krishna Institute has moved into high-end procedures including transplants and oncology and is exploring newer markets to unlock new avenues for future growth. It has also committed to expanding its bed capacity by an exciting 60% over the next three years.

Together, these moves will help the company “sustain healthy margins by improving its revenue mix,” as per HSBC.

The investment firm has a 670 INR price target on KIMS that indicates potential for about a 14% upside from here.

Meituan (HKG: 3690)

HSBC recommends investing in Meituan as it’s a “best-in-class large cap” that stands to meaningfully benefit from China’s new policy measures.

The investment firm likes this name as it has remained resilient in the face of macro challenges. “High-quality growth, improving profitability, and limited competition” were among the reasons HSBC cited this week in his bullish note.

Analysts at the firm expect Meituan to grow its top line by 20% this year and another 17% in 2025. “Its earnings quality is one of the best in the sector,” they added.

Compared to its internet peers, Meituan is “relatively under-owned” at writing. Less than half of the global emerging market funds currently own this stock versus “two out of every three funds” for Tencent.

HSBC has a 220 Hong Kong dollar price target on Meituan stock that suggests it could rally up to 30% from here.

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The idea of a year-long sabbatical, once a whimsical aspiration, is gaining traction among top-tier executives.

From venture capitalists to CEOs and even pop stars, leaders are increasingly recognizing the transformative potential of stepping away from the relentless grind.

This isn’t simply about rest and relaxation; it’s about strategic reflection, strengthening connections, and ultimately, returning to work with renewed purpose and vigor.

Trading billion-dollar deals for family dinners

Venture capitalist Jeremy Liew, a partner at Lightspeed Venture Partners with a track record including a seed investment in Snap Inc., had long envisioned a year-long world trip.

Despite achieving remarkable professional success, including Snap’s $24 billion IPO in 2017, Liew found himself perpetually immersed in work.

It took the disruption of Covid, and the sudden absence of constant travel, for him to realize the value of what he was missing at home: “Having dinner with my family. Unstructured time with my kids. Having the time to train.”

This realization prompted Liew to reduce his commitment at Lightspeed to 20% and embark on a year-long family adventure in 2022, just as his eldest child was starting high school.

From Tanzania to Taiwan: a journey of discovery

The Liew family’s itinerary spanned 12 destinations, each for a month, beginning with Tanzania and Kenya, then on to Australia, Singapore, and Italy.

However, halfway through, teenage yearnings for peer interaction led to a six-month stay in Taiwan.

While the initial plan was modified, the experience remained invaluable.

The rise of the executive sabbatical

Liew’s journey exemplifies a growing trend.

Matt Mullenweg, CEO of Automattic, took a three-month sabbatical in 2023 to focus on personal pursuits like chess and sailing.

Even pop star Lizzo announced a “gap year” for personal peace, although she later clarified it was more of a work-intensive period away from the public eye.

Ania Smith, CEO of TaskRabbit, took a year-long break in Buenos Aires with her family before assuming her current role.

“My gap year played a pivotal role in my career,” Smith shared with Fortune.

“It gave me the space to reflect on what I truly wanted and develop a clear plan to achieve it, eventually leading me to my current role.”

These examples highlight the diverse motivations and benefits of taking an extended break from work.

Sabbaticals: no longer a luxury, but a strategic tool

Sabbaticals, long a standard practice in academia, are becoming increasingly common in the business world, especially after the pandemic disrupted traditional work patterns.

LinkedIn’s post-pandemic addition of “Career Break” as a profile option reflects this shift.

In 2021, nearly 30% of businesses surveyed by an HR organization offered unpaid sabbaticals, a significant increase from 18% in 2016.

Major companies, including Bank of America, Thomson Reuters, and Goldman Sachs, have joined the ranks of those offering regular employee leave, alongside established programs at McDonald’s, Adobe, Deloitte, and Zillow.

Even travel agencies are now specializing in “sabbatical travel” planning.

Reframing the narrative around career breaks

While skepticism sometimes surrounds executive sabbaticals, especially when they follow controversies or poor business performance, the perception of career breaks is evolving.

Rather than being viewed as a sign of weakness, taking time off is increasingly recognized as a strategic move for personal and professional growth.

“People are using sabbaticals to create transformation in their lives and pivot careers,” Cady North, author of The Art of the Sabbatical and founder of North Financial Advisors, told Fortune.

This shift reflects a growing understanding that career paths are not always linear and that taking time for reflection can lead to greater clarity and purpose.

A VC’s transformative journey

Arjan Schütte, founder and managing partner of Core Innovation Capital, had long dreamed of sailing around the world with his family.

The pandemic, ironically, provided the catalyst.

Realizing he could manage his investments remotely, Schütte embarked on a year-long voyage across 20 countries, homeschooling his children along the way.

The experience was profound, particularly the increased time spent with his kids. “It’s funny that you need to go to an exotic locale to figure out something so quotidian,” Schütte remarked.

The sabbatical also allowed Schütte, at 52, to reflect on his career trajectory and reaffirm his commitment to venture capital.

“I feel like I have a fresh mandate,” he shared. “From parenting to my relationship with my wife…I’m much more dialed into these relationships.”

Overcoming the fear of stepping away

Taking a significant career break can be daunting, as Smith of TaskRabbit discovered.

She and her husband faced concerns from mentors about the potential impact on their careers.

“More than one mentor cautioned me about the potential negative impact to my career,” Smith recalled.

“I guess I believed then that the gap year would allow me to pick up new skills, and that I needed to share this belief with others.”

Overcoming these fears can be a challenge, but the rewards can be significant.

Organizational benefits of leadership sabbaticals

Executive sabbaticals can also benefit organizations.

A CEO’s temporary absence can stress-test leadership structures, provide opportunities for other team members to step up, and even serve as a trial run for succession planning.

Liew observed that his absence created “upward momentum” in his team’s careers, as they took on greater responsibilities.

Liew’s only regret is not taking his sabbatical earlier.

While teenagers’ social needs necessitated a change of plans, the overall experience was profoundly positive.

His advice to others considering a similar break? Do it sooner rather than later.

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Workday’s (WDAY) stock price has crawled back after tumbling to $200 in August as the unwinding of the Japanese yen carry trade occurred. It has bounced back to $270 and is hovering near its highest level since April 8 ahead of its upcoming earnings.

Workday had been a top performer

Workday is one of the biggest software companies globally, offering important solutions like human resources, payroll, planning, and analytics. It is used by over 10,000 customers globally, a figure that is continuing to grow. Its clients include about 60% of all Fortune 500 companies, with some of the recent wins including Lowe’s, GE Vernova, Ryder, and Cushman & Wakefield.

Workday’s performance has been strong over time as it added more clients and new products. Its annual revenue jumped from $3.6 billion in 2019 to $7.2 billion in the last financial year. It has also become a highly profitable company, with its annual profit jumping to $1.3 billion, a figure that will continue improving. 

Workday has benefited from various themes in the past few decades. For example, it has incorporated artificial intelligence in its operations, helping to boost its clients’ productivity. Companies using its AI solutions can improve the hiring process, save time, and easily hire qualified individuals.

Workday’s other benefit is that it has little churn in its operations. Once a company like Salesforce becomes a client, there is little chance that it will move to another provider unless of a major issue. As such, in most cases, Workday’s churn is usually less than 1%.

The other benefit is that it operates in an industry with a large addressable market. The human capital sector is a $58 billion market, while the corporate financial segment is an $84 billion one. 

WDAY earnings ahead

The Workday stock price will be in the spotlight this week as it publishes its financial results. The most recent numbers showed that the company’s growth was still strong, helped by its subscriptions. Revenue jumped by 16.7% to $2.085 billion as subscriptions jumped to $1.9 billion. 

Workday’s backlog continued rising, with the 12-month rising to $6.80 billion and the total one reaching $21.58 billion. Its operating cash flow was $571 million, higher than the $425 million it made last year.

Analysts expect that Workday’s business continued to do well last quarter. Precisely, the average revenue estimate is $2.13 billion, a 14.2% increase from the same period last year. The highest estimate is $2.15 billion, while the lowest one is $2.11 billion. 

Workday’s forward revenue guidance for the fourth quarter will be $2.2 billion, bringing the annual figure to $8.4 billion. In terms of earnings, analysts see Workday’s EPS rising to $1.76 and the annual one reaching $7.7. Chances are that Workday’s earnings will be higher than estimates as it has done in the past few years.

Workday stock price analysis

WDAY chart by TradingView

The WDAY share price has bounced back in the past three months and moved above the key psychological level at $250. It has formed a golden cross pattern as the 50-day and 200-day Exponential Moving Averages (EMA) crossed each other. In most periods, this is one of the most bullish signs in the market.

Workday shares have also moved slightly above the key resistance level at $266.4, its highest swing on August 6. The Relative Strength Index (RSI) and the MACD indicators have also continued rising. 

Therefore, there is a likelihood that the Workday stock price will continue rising as bulls target the next key resistance at $300. Still, there are concerns about its valuation. Its rule of 40 figures, which is made up of the net income margin and revenue growth, stands at 35. Also, Needham analysts recently lowered their WDAY stock forecast.

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