Green Stocks Oct 27- Will Green Pack Close October In Black?

It was a day of contrasting fortunes for the green pack, with most of the pack ending in the red, save for exceptions from the Waaree Group in the form of Waaree RTL and Waaree Energies, besides Premier energies, Webel Solar and   to an extent, Tata Power. 

That most of the gainers have come from the solar manufacturing packs comes as no surprise, seeing the commentary downplaying the risks of overcapacity as well as healthy order bookings still continuing for these firms,. Saatvik Solar and Vikram Solar, the other two manufacturers in our pack, missed out however, as investors seem to gave plumped for the larger firms for now, 

Among EPC's only the much beaten down Sterling  and Wilson Renewable enjoyed a day with gains, perhaps value buying after con calls with analysts by its management. Developers continued to struggle, from Acme to Adani Green, with Tata Power barely ending in the black itself. 
 
The market is gradually aligning expectations and prices based on the prospects of specific segments and firms, as we have been saying. More firms has meant more information available to parse and apply, and accordingly, manufacturing is still seen as the segment most likely to surprise on the upside. EPC's will always be constrained by margins, while developers offer perhaps the most predictable revenue streams with upsides and risks linked to procurement costs the most. 

In all this, we still await a strong storage player, although Pace Digitek, currently staying within the vicinity of its IPO price, comes closest.  What will truly complete the pack is to have a storage manufacturer, besides EPC's like Pace. On the wind front, both Inox and Suzlon continue to hold fast to existing levels, even as recent order flows have gone to other, non-listed players like Envision Energy as well.  

The lead question however remains if the green pack can end the month with gains over the ;losing prices of September end. At this moment, we would have to say, chances are higher than most would expect to see such gains other than for exceptional stories like SWREL, which have taken too deep a hit to make a full recovery so soon.

List of Green Stocks