Websol Annual Report.pdf (5.8 MB)
A very interesting Annual Report was published by Websol. My key takeaways were that the company is looking at a 4x expansion in by FY 27 on its current cell business of 600 MW. Apart from that they might get into commercial wafers and ingots production apart from captive use and this might help them retain good margins. Also, they are entertaining getting into solar rooftop EPC side of the business.

With all these optionalities I see this company as a 25000 cr Mcap business in next 2-3 years if they are able to execute professionally like they have till now.

Disclaimer ~ All disclaimers are useless, we are all responsible for our own decisions. I am currently 92% net wealth invested in this company and I am up almost 90% in one month. This makes me biased but at the same time, I can sell and switch to any company without being liable to inform. My projections of 25000 cr mcap comes from a topline estimation of 2500-3000 cr topline with 10 Mcap to Sales and an assumption that 2-3 years down the line the company will be aspiring to reach 5gw capacity and hence the elevated exit multiples shall be assigned. Also, Premiere Energies with a Quarterly Topline of 1600+cr and almost 50,000 cr Mcap will be a good North Star metric for a company like Websol. There is no reason why Websol cant be 2-3 years down the line where Premiere is right now

Ending my Disclaimer with the theme of the Annual Report
“BOLDNESS IS EVERYTHING”

Onwards and Upwards!

Just one confusion. Has the 5 MMTPA terminal already been completed? Sources keep say it will be completed. In that case what explains the outperformance of the energy sector? Thanks

Tata Motors DVR shares will be swapped for ordinary shares on September 1, 2024, and the shares will be credited to accounts on September 18, 2024.
The cash entitlements will be remitted on September 21, 2024

Though the revenues are increasing, the story that the management paints and the reality aren’t matching. Management wanted the exports revenue share to go to 50% and reach 75% eventually. But the reality is, the domestic revenue share is 86% and exports is 14%.

Supporting this claim, the management says that they have presence in 100+ countries and that they have been getting inquires from multiple countries across the world, North America, Australia, Middle East, Nepal, etc. This is to create a narrative that they are diversified now and hence the revenues should be more predictable.

Let’s look at their order inflows in the past few quarters starting from Q2’23 till date: 461 → 2863 → 410 → 1215 → 1529 → 402 → 1141 crores
Of these, the biggest order was from BSNL (domestic telecom), second biggest order seems to be from PGCIL. They secured 9 contracts from PGCIL in the last 12-15 months.

From the recent concalls, the management confirms that the revenues from EPC, railways, North America are pretty less and that the railway revenues may decrease this year. However, they seem to have got a good order from Australia, not sure of the size though.

Putting all these into perspective, Skipper is a domestic player, largely dependent on PGCIL and the telecom tailwinds (revival packages to BSNL from Govt).

For Skipper to grow 20%, they should get order inflows of around ~ 1200 crores, every quarter, or pretty huge orders (once or twice every year) from the existing clientele. Unless there are tailwinds in domestic sectors that Skipper operates in, I am not sure how that is possible. If any, due to the economic conditions, the orders from PGCIL may dry up or slow down (as has happened in 2019).

If it helps, FIIs have reduced their stake from 9% in June 2023 to 3.6% in June 2024, promoters have reduced their stake from 71% to 66% in the last couple of quarters.

Thanks for this bro! Got to learn a lot and still much more to learn… THANKS A LOT