Are Green Stocks Struggling To Meet High Expectations

On a day when heatwaves across the country and soaring power demand indicates a hot summer ahead, the focus was clearly on coal stocks, and not green energy stocks today. Consider how despite a dropping share of generation capacity, thermal’s share of actual generation has only been climbing, with power plants set to enjoy their best ever PLFs in recent memory. That possibly explains why it was the coal fired Adani Power that soared today, and not Adani Green. Or perhaps it is the reality of shrinking margins in the EPC business that is putting pressure on the fantastic valuations of Waaree Renewable technologies, locked at the lower circuit or the third day since its results. Solar pimps market leader Shakti Pumps continued to buck the trend locked at the upper circuit , considering the massive runway ahead for faster and more deployment of solar pumps. All in all, it is clear that riding the green energy wave on the stock markets will no longer be the no brainer it seemed a year back. Investors need to move cautiously.