Green Stocks Jan 3: As Market Gives Up Gains, Green Stocks Struggle As Well

After yesterday's strong show, it was time for a dose of reality, as the Nifty gave up some of its gains today. For Green Energy stocks as well, it was a similar story, with KPI Green correcting over 3%, with only Shakti Pumps (up over 4%) and Acme Solar clocking any notable gains. For others, it was more a matter of arresting the risk of a slide, with many making small gains today to do so.

The Oct-December quarter and January-March quarter are traditionally good, as even the disturbances from the retreating monsoon in South India is limited during these months. So expect a strong set of results from most of the firms in our pack. What will make it even better possibly is the rush to commission projects in time for the June 2025 deadline for a 100% waiver on ISTS charges, which will energise both developers and clients to move faster. So expect the EPC pack, languishing in a range for some time now, to finally break out at some stage next month if results are in line.

Besides growth, margins will be a focus going ahead as well, especially for manufacturers, caught as they are between the demands of high topline growth and margins, that, if they appear too rich, could attract government attention as well. It might also be time to start looking ahead to the impact of the coming energy storage boom, expected to start making an impact from H2 in 2025.