Green Stocks Feb 19: Stocks Claw Back Losses

On an ordinary day with no decisive move for the Nifty, our green pack certainly found the energy to make a move to recover some of the lost ground in recent weeks. That meant stocks like Shakti Pumps, KPI Green, and even SWREL made strong gains. Wind energy stocks Inox Wind and Suzlon gained as well, as valuations appeared attractive to many considering their strong order book and bidding trajectory.
As punters evaluate the relative impact of various factors on these stocks, as we have been stressing, it is not the trajectory of growth, but the quality of that growth and the winners therein that will be evaluated harder from here on. That explains the wide variations in valuations, and expectations from firms within the same segment like EPCs, Developers, or even solar manufacturers like Premier or Waaree Energies.

For now, it is quite obvious that the recovery, if it can be termed that, is more like a short-term rebound. The sustainability of this recovery itself is questionable until more definite signs emerge. These could be the return of FII buying, a policy announcement like extending 100% exemption on ISTS charges beyond June this year, or even a clearer pathway to actually enforcing RPO obligations across the states in India.