Green Stocks Jan 16: Strong Day For Green Stocks

Azure Power Analyst Call

We have been stressing how the margin for error is fine when it comes to green stocks and their valuations. And we saw it in full play in the contrasting market response seen to results from two of the Solar EPC firms in our green pack. While SWREL, which turned in a strong set of results was up almost 10% post results, Waaree Renewable Technologies Limited, with a disappointing set of numbers, found itself dragged down over 7%. While detailed explanations will follow, there is no doubt that investors are skittish when it comes to the valuations of many of these stocks.

All the large developers in our pack, NTPC Green, Acme Solar, and Adani Green enjoyed a strong day, with the latter still slowly recovering ground lost over the past month. The two major manufacturers, Premier Energies and Waaree Energies, also stayed in the green, with the former in particular expected to deliver a very strong set of results in Q3 as well to justify a premium. Wind energy major Suzlon continued to surrender gains made, even as it remains poised to surprise on the upside.