Green energy stocks fail to benefit from selloff in Adani Green Energy

Six of the eight stocks operating in the green energy space declined on Friday, failing to benefit from the rout in Adani Green Energy's decline over the last two sessions. 

The stocks command a market capitalisation between Rs 5,560 crore and Rs 89,058 crore. Elevated valuation in the stocks operating in the sector was cited as the reason for investors refraining from buying them. The stocks declined between 0.2 and 4.4 per cent. Websol Energy System declined the most, followed by KPI Energy, which fell by 2.8 per cent, and Inox Wind, which fell by 2.1 per cent. 

 

Waree Energies declined by 0.6 per cent. Orient Green Power declined by 0.9 per cent and Suzlon Energy by 0.2 per cent. KP Energy, and Sterling and Wilson were the only gainers in the pack, rising 1.1 and 2.3 per cent, respectively. 

 

“All the renewable companies are quoting at a high valuation even after the recent market sell-off. There is no real incentive for investors to consider them now; a run-up has already happened. From here on, they are unlikely to give huge returns,” said Deepak Jasani, head of retail research of HDFC Securities.