Green Stocks Feb 3: KPI Green Stands Alone As Correction Continues

On a day when almost all green energy stocks suffered the jitters from a nervous market, EPC firm KPI Green stood alone recording 5% gains. But even those gains will be cold comfort to investors who have seen the stock plumb new lows over the past week, dropping almost 30% in a month. Today's strength was attributed to the announcement of a dividend at the board meeting to confirm, its third-quarter results, that are expected to be strong.

Beyond KPI, it was a familiar scene of losses across counters, with only the extent of damage varying. Developers faced the brunt of weakness, dropping between 2 to 4%. EPC firms other than KPI also failed to find any strong support, dropping over 2% each, with Waaree RTL in particular going down almost 4%.

Each Quarter's results seem to be adding to the understanding of the business, and leading to a re-rating of prospects, despite consistent margins and numbers. We believe the cycle of learning and readjustments still has some way to go.