My view is to get good returns first step is to get industry tailwind in favour .In that if we can get some competitive edge then the probability of getting good returns improves drastically .
My short Top of mind investment thesis for Hi Green :
Industry Tailwind -Higreen trully operates in a circular economy as they get 3 products from waste with zero liquid and solid discharge .The industry will shift from slowly from 100% Vcb to Rcb in slow and steady manner .
Competive edge /Right to win :
1)Technology / capex cost (which is an edge for the group) incurred is only 40-50 cr for a 100 KLPD plant compared to outside India (leaving china ) at 180-200 cr per 100 klpd
2)Have got approval for 2 more plants .One in Dhule and another in MP .Both should be operational in a years time .Hence capacity expansion is 3X in 1 years time .
As and when the manufacturing kicks starts ,operating leverage should kick in ,lets see
Discl: Views may be biased bcos of my holdings
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