Green Stocks Nov 6: Trump Bad for Climate, But Good For Green Stocks?

Perhaps it was just the relief of putting the event behind them, or a genuine hope that a Trump presidency would broadly be good for growth, but there was little doubt that Indian market seem to consider a Trump presidency better. That explains the sharp jump seen in the markets today, with our green pack probably outdoing the broader market comfortably in terms of gains. That explains the broad based gains for developers, EPC players, and manufacturers like newly listed Waaree Energies, which crossed the 3650 mark during trading, taking it ever closer to a Rs 100,000 crore valuation. Those are mighty numbers from a category that was struggling to turn a profit a couple of years ago. EPC firms like Waaree RTL and KPI Green have also declared results this week, and the story of high growth and profitability remains intact, although the higher base effect can be expected to kick in from the next quarter or so. But markets remain confident that a 30% plus CAGR is well within reach for these firms for the next two years and more.

Importantly, most firms have done well to shed debt in the current run, and that should prepare them well for any downturn, much as no one expects to see one anytime soon. But as the world has learnt from the last Trump presidency, with the incoming President, expect the unexpected. This time, with Trump's widely held and publicised climate scepticism and anti-renewables stance, one hopes he will do the unexpected and allow the renewables bandwagon to continue on its path.