Green Stock Oct 23: A Day of Respite For Green Stocks

NTPC Green Energy today entered into the Indian stock exchange. While it opened at a price of Rs 111.5 per share, its price shot up to Rs 121.25.

After the relentless hammering o the past few sessions, Green energy stocks finally saw sunshine with almost all the stocks ending in the green. The blockbuster success of the Waaree Energies IPO has no doubt reminded investors of the potential and opportunity that continues to exist in the sector, helping many of the beaten down stocks to recover some of their losses today. However, it is probably too early to think that the worst is behind us, and the forward march will start yet again.

While strong order books will provide a lot of comfort to investors, execution risk remains, which is why we keep stressing that every quarter’s results will matter at a time when valuations are stretched. Notably, Premier Energies, which had sustained a level over Rs 1000 almost till the end of trading yesterday, finally settled a shade below 1000 today, with a comparable peer and industry leader, Waaree set to make its stock market listing next week. With both players involved in module and cell manufacturing, their public presence will help add a degree of transparency and predictability on many aspects of the sector going forward. A positive development to look forward to for media and investors alike.