Green Stocks Jan 28: Big Losses Outweigh Small Gains For Green Stocks

On a day of immense volatility, green energy stocks failed to arrest the decline seen in the recent past, with losers outnumbering gainers by a margin. Where stocks did manage to stay in the green today, like NTPC Green or Waaree RTL, it was only after steep falls from their recent prices. In the case of Waaree RTL, we doubt that the pause in the drop it has seen would be any joy to its shareholders, who have seen the value of their investment wiped out by over 70% in the past 6 months. EPC player KPI Green continued its drop as well, falling a further 5%, as did Shakti Pumps, which fell by the same value. Despite the latter delivering a fairly good set of numbers that on another day, another time would have probably seen the stock price make a move in the opposite direction.

So what can companies and their stakeholders do in this situation? While promoters with pledged holdings if any have much to worry about, for the rest, there really is no better time than this to get down to executing, something they know best. Focus on that, to prepare for better times sentiment-wise, and even benefit even more in the long term. The downturn will create its own opportunities for firms to evaluate investments, recalibrate those, and invest in long-term growth, as worrying about their stock prices is really not taking them anywhere too soon.

The big worry of course will be for those left behind in the IPO wave we have seen, as they ponder over the valuations, and investor response for their offerings now that many green energy IPOs are trading closer to their issue prices. And mind you, those were never cheap in any case.