Green Stocks Nov 14- No Goodies For Green Pack On Children's Day

A stock market that barely rose on a day when the ruling party won an important election. One could say this is an adjustment after the markets moved on the back of earlier predictions of such a win, or perhaps a worry that such wins will make decisive reform even tougher. Elections being won over freebies is generally not a good sign for economies in the medium to long term, whatever be the short-term benefits. 

A standout today was Oswal Pumps, as the solar pump maker from Karnal turned in a strong Q2 performance. While margins shrank a little due to multiple factors, including lower tender rates in the flagship solar pump scheme/s, the firm did well to maintain a strong growth trajectory. Management also indicated that better margins would follow from more backward integration. That statement underlines some of the key challenges facing any firm that deals a lot with the government sector. There is a relentless pressure on prices all the time, and eventually, only the largest firms make it through the grind. Oswal certainly seems capable, as seen in the bump up the stock received from investors today. The newcomer is also trumping the established player, Shakti Pumps, it has to be said.    

Oswal's good results also helped another solar pump firm, not a part of the green pack yet, GK Energy, to move up sharply today in anticipation of good results. 

A third firm we plan on making part of the green pack, recently listed Pace Digitek, will also announce its results later today. We will look at the numbers and the share of business from renewable projects to make our call.  But the firm seems to be emerging as a good proxy for the energy storage spike underway.

List of Green Stocks