Green Stocks Sep 11- Waaree Group Firms, Developers Have a Good Day

On a day when not much was happening, the green pack was lit up by the jump in both Waaree Energies and Waaree RTL, as both enjoyed a strong day of over 5% gains. Enjoying a strong day was also Acme Solar, whose strategy to focus on more  FDRE and RTC projects backed by BESS seems to be finding many takers among investors.

Struggling, perhaps not unsurprisingly, were the two solar pump operators, Shakti Pumps and Oswal Pumps. While the former has been struggling to find momentum, in Oswal's case, it is more a question of taking a breather after a string of run-ups post its listing.  Also not surprising was the correction in Vikram Solar today, after the sharp rise yesterday on the back of an order win. 

While few will complain about a rising market, considering the humongous number of mutual fund investors who have been starved of real returns this financial year, the fact remains that the current uptrend seems more based on hope than ground realities. Assuming a 6.5% GDP growth number, the markets are still decently valued, and we might be biased, the green pack is one of the few pockets where there is still potential for a rise if the stars align. But that too post Q2 numbers, in our view. 

A raft of green energy IPO's slated for this year will ensure an ever-wider array of options across categories for investors, which is truly a far cry from where we were just a couple of years back. One of the consequences of this choice is available now, as investors become more careful on backing these stocks, and comparisons with peers become more exacting. A scarcity premium of the kind enjoyed by Shakti Pumps till a year back, or even Premier Energies and Waaree, besides the full EPC contingent, is fast disappearing, as the market learns to evaluate these firms on a broader set of metrics. Pick your winners carefully, for there will be winners, just not every firm that is in the business.

List of Green Stocks