Green Stocks Jan 22- Waaree gets Lucky, Markets Rise On New Hopes

If you ever had to ask about the role of luck in your stock picks, look no further than the experience of Waaree Energies today. The firm picked post-market hours on Jan 21 to announce a superb set of numbers, and as luck would have it, its shares have basked in the double engine benefit of a positive market and the even better results. 

While Waaree Energies was the standout today, there is also little doubt that the revenue profile of the firm is changing from being just a module seller to an integrated solar player, with a presence across inverters, and soon, storage as well. For a firm that ploughed an often lonely path during the years when solar had few takers and manufacturing was not in fashion, it has earned the respect of peers and the market too. And many will take strength from the fact that rather than rest on its laurels, Waaree has doubled down with more big bets on the Indian renewable story.      

Other manufacturers that have also declared results, like Emmvee and Vikram Solar, also rose, while Premier Energies also moved up in anticipation of good numbers tomorrow.  With market feedback trickling in of a gradual rise in module prices as manufacturers race to protect margins, the big question will be the elasticity of demand in key segments like retail and C&I. As we said yesterday, impending hikes in power prices will support the logic of going solar for many even with slightly higher prices,  although there will come a time soon when smart customers will raise questions more loudly on the huge difference between prices in India versus Chinese imports of similar or better quality.  The solar sector is going through its biggest opportunity in a lifetime so far, and one just hopes they take the right steps to ensure the good times last by investing in IP as well.

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