Not exactly an apples to apples comparison, you have to put it against the demand for solar panels and new solar capacity installations in India
Post 2017, solar installations have grown at an magnitudes higher than period of 2011 to 2017
This is how margin trajectory for BR takes place
Capacity Utilization at Maximum (99%) + ADD + BCD = Max Margins (>35%)
Capacity Utilization at Maximum (99%) + BCD = 25 to 35% Margins
Capacity Utilization at Maximum (99%) + no duties = ~20% Margins
With the removal of ADD, my guess is Govt wants to leverage the cheap imports of raw material (glass, ingots etc) from China (since no one else is taking these products from Xinjiang region (US, EU have banned)) and India doesn’t have a raw material value chain for solar products yet (silica to ingots)
Chinese guys cannot dump their products in EU/US, so they will shift to India
For Borosil Renew, all sales price is based on landed imports.
Personally been bearish on this, see margin contracting but sales increasing. Not sure what valuation multiple market will add to this.
Dont think margins will reduce to 10%, but can hover between high teens to 25% range.
Whatever margins are, one thing is certain that business dynamics surrounding this have changed in the short term (~2 years) and hence you have to act accordingly.
D: Reduced Position between 700 and 800
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