Waaree Energies & Adani Green Energy: Mitesh Panchal shares outlook on 2 renewable stocks

Sebi-registered analyst Mitesh Panchal on Thursday said benchmark Nifty50 could witness a strong positive trend reversal in the near term. "We are of the view that one should buy this gap-up and, going forward, 25,200–25,500 is achievable for the index," the market expert told Business Today.

In response to a query on the renewable sector post GST rejig, Panchal suggested that Adani Green Energy Ltd and Waaree Energies Ltd looked interesting at current levels from the select basket.

"Adani Green recently gave a breakout above Rs 920. The stock has potential to touch Rs 980 in the near term. So, one can go ahead and form a position in it," he stated.

On Waaree Energies, he said the stock can hit upside potential targets of Rs 3,500–3,700, adding that investors should keep a stop loss placed at Rs 3,150.

Meanwhile, the Goods and Services Tax (GST) Council has reduced the levy on renewable energy devices and manufacturing parts from 12 per cent to 5 per cent, effective from September 22 this year.

The Council also raised the rate on coal and lignite from 5 per cent to 18 per cent to offset revenue losses for state governments.

In addition, the GST on non-lithium-ion batteries, including lead acid, sodium and flow batteries, has been lowered from 28 per cent to 18 per cent to scale grid-scale energy storage technologies for storing renewable power for longer durations. The levy on lithium-ion batteries shall remain 18 per cent.

"GST has been reduced from 12 per cent to 5 per cent on renewable energy devices and parts for their manufacture, such as biogas plants, windmills, wind-operated electricity generators, waste-to-energy plants, devices, PV cells, whether or not assembled in modules or made up in panel, solar cookers, solar water heaters and systems, and so on," Union Finance Minister Nirmala Sitharaman said.