Green Stocks Nov 28- November Ends With A Whimper For Green Pack

Expectedly, the final day of November, with an upcoming weekend to boot, threw up no surprises, as the broader weakness in the markets persisted.  Even as resilient stocks like Waaree Energies continued to drift lower, a few, like the recently floated Emmvee, made a valiant attempt to stay above their IPO price. But with not much to read into price movements for now, the market continues to remain focused on the larger picture. 

What makes December interesting is the strong IPO pipeline for the month, and beyond, with some of the new prospects being pedigreed EPC firms. With the EPC pack struggling in the past couple of months, both valuations and responses from investors will make for some interesting reporting. 

With a strong H1 behind us in terms of solar capacity added, a good show in November will set the seal on prospects for H2 as well,  with every possibility of breaking the record high capacity additions of last year. Call manufacturing has remained a bit of a mystery, with actual capacity additions continuing to trail plans and projections, as firms grapple with the complexity of actual manufacturing. 

Attention might soon shift to wind energy as well, now, as more details on projects under trouble for delays and now, facing possible cancellations, are released in December, as many expect. For what it's worth,  industry insiders claim that a rush to close has already led to the list of 42 GW being whittled down to 35 GW by now, effectively. 

If that's the case, it would be good news indeed, as project capacities of 18-20 GW were in any case considered dead for all practical purposes, with only paperwork keeping those alive. A final loss of about 15 GW is a much more palatable number than the 25 GW it could potentially have been.  Or until we start worrying about the BESS projects, which have supposedly been bid out at unviable rates and could be in a similar situation 12 months from now. 

Prospective IPO aspirants we spoke to, with plans to seek listings in H2 of FY 27, are certainly hopeful of a significant turnaround post March. We wish we could share their optimism, even as we iterate our belief that current valuations are no longer weighed down by high risks, having corrected significantly towards a low downside probability from here on.

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