Green Stocks June 19: Stocks Face Brunt Of Uncertainty

You would be forgiven for thinking green stocks have had an unusually poor day vis-à-vis the key indices. But on a day of strong dichotomy between the Nifty and the broader small cap and mid-cap indices, green energy stocks suffered massively.
Be it developers, EPC firms or solar manufacturers, none was spared by an unforgiving market. The drop has also pushed many back to what we call the value zone, or the price at which it will take just one more quarter or two to make the stock look underpriced. Something that is not unlikely even today, if we consider the order books many of these stocks have. That continues to convince us that a market recovery will see some pretty sharp bounce backs for these stocks.

All this was happening even as investors made their preference for the sector obvious with yet another successful IPO of a green energy firm, this time, Solar Pump and module maker Oswal Pumps Limited. Based on the response, the company will hope to see its shares list with a premium, although today's market slump might shave off a significant part of said premium by tomorrow.

However, the Q1 FY26 quarter should still be a decent quarter, particularly for EPC firms and manufacturers. Q2 is where monsoon led slowdown and drop in demand kicks in, before recovery starts again in Q3. If Q1 does live upto its billing, many investors will consider current stock prices a very sfe entry point for an exposure to the green energy sector.

List of Green Stocks