Green Stocks Sep 8- Green Developers Stand Out In Dull Day

As markets continued to veer between hope and disappointment, green stocks that could make the most of the little momentum there was. While developers like Acme Solar, Adani Green, and JSW Energy moved up, backed by encouraging signs like large order announcements or even announcements of plans, others, notably EPC players and manufacturers, continued their drift to nowhere. The spike seen in the price of newly listed Vikram Solar, on the back of an order win announcement, should actually make many pause about the state of the sector. A single order, with no detail on profitability or impact on the bottom line, the one thing that a stock price captures, has been one of the easiest ways to move green stocks so far. We will know the category has matured when that happens to stop, or at least the wild gyrations such announcements lead to, pause. At current valuations, most stocks presuppose a degree of order wins, and what really matters going ahead is probably margins.

Which also explains the failure to fire despite the lowering of GST rates on renewable energy inputs. The worry among knowledgeable investors on the options for EPC firms to claim input credit, thanks to the lower GST on their purchases, is real. As is the potential for a legal minefield ahead of buyers starting to renegotiate for lower prices based on 'change in law' conditions. Note that all developers did file for, and got relief when GST rates had gone up, or were first introduced back in 2018-19.

For now, despite this being the first day of the week, even the net positive closing would need to be taken with a note of caution, as the situation remains too volatile to call.

List of Green Stocks