Dipan Mehta, Director, Elixir Equities:
That is something that we have been concentrating on, but more than the traditional T&D players. Our focus is on some other renewable energy equipment players, both wind power as well as solar power. Then some of the other companies also, which are in the energy business, something like an ONGC or Oil India as well, which can get a lot of encouragement and SOPs to increase the exploration activity in India. Then there are certain oil field services companies like Deep Industries, these are the companies also which are worth looking into. So energy security could be a big investment theme, and the better way to play it is some of the companies which directly benefit from renewable sources of energy and equipment or otherwise. There’s, of course, the two-wheeler electric companies, Ola Electric and Ather. Ather particularly as done exceptionally well last few trading sessions. Particularly because investors are looking for stories in this particular investment theme.
As a disclosure, we are invested in Suzlon Energy and Inox Wind, and Waaree Energies as well, and looking at other stories also. Another interesting stock which comes to mind is Fujiyama Power Systems. It is one of India’s largest rooftop solar equipment company, and that’s a total retail business. There also they’ve got good growth dynamics, reasonable valuation. Like to just wait for the quarterly numbers for these companies. There could be some, if there’s a softness in the quarter, then stock prices can correct, and that may give a good opportunity for long-term investing
On Solar/EV-themed stocks
Gaurang Shah, Sr.Vice President, Geojit Financial Services Ltd:
Speaking about some names in the auto EV pack, well, we are positive on M&M for a pretty long period of time, and now M&M has got a decent EV product portfolio, as well as in the next couple of years, they are going to increase that offering in the EV segment across different product profiles, so M&M could be one in terms of autos. In terms of pure power play, whatever government has elaborated and whatever government has learned, and we all have learned from this West Asia situation in Iran, Israel and US, aatmanirbhar and self-reliance is something that we need to really focus on. I think there’s an elaborate policy in place, and there will be new policies coming in from the government side. So if I have to name Waaree Energies is something that we are positive on. Players which will enable production of clean and green energy. So, there is a small part in Tata Power. They have gone quite well into solar. Similarly, there are other companies which are planning – nuclear energy is also a theme that was spoken out by the honourable finance minister in last year’s budget and this year’s budget there’s an elaborated budgetary allocation towards nuclear energy as well. So you have names like Torrent Power, you have names like JSW Energy, NTPC. There are quite a few plays that you can look
Ruchit Jain, Equity Technical Research, Wealth Management, Motilal Oswal Financial Services:
Within the EV theme, Ather Energy technically looks quite bullish. We have seen a good relative out performance over last three or four months, in fact, when the entire market was in a corrective phase, the stock relatively held well. And now, and I have seen a good price volume action compared to other stocks within the entire space. So, Ather Energy can buy in a staggered manner with maybe 30 to 40% of quantity, whatever he wants to buy at current levels. And if we get any dip towards ₹800 level, look to add more on declines. So, Ather looks good over here. And NTPC, within the power theme or solar theme, could do well if he has a bit mid to long term perspective. Already we have seen some good price wise as well as time wise corrective phase. Downside seems to be limited from hereon, so that stock from a risk reward ratio perspective looks good.