Green Stocks Jan 23- Market Dives Again, Green Pack Leads Slump

After the green shoots of hope yesterday, the markets were back in slow burn mode today, slipping through the day again. The green pack was a particularly heavy loser, with many stocks slumping way more than the index or small-cap/mid-cap indices. Premier Energies, the largest listed solar manufacturing player after Waaree, declared its  Q3 results, and has been met with a sell-off for now. The stock was down 4% at the time of writing this, despite what appears to be a decent delivery, even as weakness in growth momentum was visible on a sequential basis. Like Waaree, it will also have to count on its many new expansions and diversifications to start delivering soon to see any meaningful stock recovery, it seems. 

From a PE of 40 plus routinely, it is clear that post Q3 results, a PE of sub 20 is the new normal for solar manufacturing firms as well, more at par with peers in other industrial sectors. Perhaps not such a bad thing, if one had top search for a silver lining in all this. From here on, we will probably see analysts being able to predict growth numbers better, as capacity additions reach a limit for now. 

Keep in mind that a significant risk building up is the impact of price rises on both solar and energy storage sales. It is too much to expect the government, which is incapable of acting before at least 6 months of most issues in any case. Forget doing anything meaningful in the budget to tackle this risk.  But if by some unintended way even, it actually manages to cover this one, the industry will never be more grateful, considering the lineup of firms hoping to hit the public markets.

List of Green Stocks