Green Stocks Oct 28- Q2 Results Remains Best Hope For Green Pack

With two of the biggest firms in the green pack, developer Adani Green, and solar maker Premier Energies due to announce results today, it does look like results are the best hope for stocks in the green pack to hold their ground or make gains. Results from these two will impact expectations of results from the others as well, especially as key firms like Waaree RTL and Waaree Energies have already delivered good numbers. 

In general, by the time the season is done by mid-November, we believe investors will be in a very good position to do a reality check on how far the green pack has met expectations, and it does seem that most have passed the test. So we remain hopeful these stocks will turn around to provide a much better YTD picture by the time the calender year draws to a close. The trade deal pothole was unfortunate, and continues to cast a shadow on many firms across sectors, besides sentiment. Solving that, as and when the government finds an acceptable solution, will be key of course. 

Having said that, the supply of future paper from the sector in public markets looks set to be affected, as recent listings have not exactly set investors hearts alight. Firms need to either leave more on the table for investors, or prepare to defer issues by a quarter or more.  

We are particularly curious to see how the solar pump firms fare, as results from Shakti Pumps and peers come in , as those firms have faced a serious beating in recent months on the markets. It's the same story for EPC firms, and firms like KPI Green seem to have held out hope of a good show, looking at how the stock has been making marginal gains at every opportunity before results day. Increasingly, expectations for the green pack seem to be more about inflation beating or exceeding bank returns, rather than the multi bagger or high returns until 2024. In many ways , the change marks a new phase of maturity for the sector, as many more firms cross the billion dollar revenues mark, rather than the market cap mark.

List of Green Stocks