Green Stocks Mar 11: Green Stocks Fail To Benefit From Rebound

On a day when the key indices, as well as the broader mid cap index rose, most green energy stocks failed to catch the wind, so to say. NTPC Green, Borosil Renewables, Suzlon, SJVN and Premier Energies were just about able to eke out some gains, even as the rest slipped, and in some cases, badly. Clearly, with talk about historical valuations versus current valuations, green energy stocks and their prospects are still seen as up in the air, with not enough benefit of doubt for their unprecedented order books, margins or anything else.
In all this, governance issues at storied firms from the sector like Gensol have also not helped matters.

In case of EPCs like KPI Green and Sterling and Wilson Renewable, the drop by now has been sharp and long enough to make a profitable exit virtually out of the question for investors who entered these earlier this year. However, before rushing to exit with significant losses. investors have at least one piece of good news to await before making that final call. The Q4 results. Almost all firms in their Q3 calls have indicated positive sentiments around their Q4 prospects, and so far, we see no reason for that to be impacted other than for exceptional situations like Gensol. A strong Q4 performance for many, be it Shakti Pumps, KPI Green or Waaree RTL, might not lead to the kind of exuberant support, but it will certainly pull these stocks back from what appears to be too pessimistic valuations.