Green Stocks May 14- Green Stocks Ride Performance, Optimism

On a day when large caps largely struggled, small and mid-cap stocks maintained their positive momentum, green caps especially so.

That is why KPI Green, which has already climbed almost 15% since the week started, rose yet again today after it delivered on expectations of a strong Q4, and with it, FY25. The optimism spread to other green energy stocks as well, notably Sterling and Wilson Renewable, Shakti Pumps, and even the manufacturing heavyweights, Waaree Energies and Premier Energies.

The heavyweights, NTPC and Tata Power, are yet to declare their results, although the latter is expected to do so today. A good set of numbers and a positive commentary going ahead will do no harm at all to the expectations of the green pack maintaining its momentum.

The wind energy majors, Suzlon and Inox Wind in particular, have mounted a strong recovery from the drops they suffered last week, as order flows continue, and policy also seems to favour them. It has to be said that the situation this week is much better than where we were a week ago, with some of the most beaten-down stocks like Sterling and Wilson Renewable and KPI Green marking smart recoveries. Shakti Pumps, another strong performer which hasn't really seen a kick in the stock price, will be expected to deliver on its promise of a better collections performance soon, to take it back in the fast lane.

The three green developers in our pack, that is Adani Green, NTPC Green and Acme Solar, will all have to wait a little longer, possibly, as it will take bigger news to move them decisively, with the market looking at a much longer time frame in their case to jump in. But all things remaining equal, it has to be said that the green energy pack remains well placed to deliver another strong year of returns in 2025 as of now.