Hi friends,

Leading players (small players excluded) existing capacity and planned capacity of both Module and Cells taken from Vikram solar DRHP.
As you can see, 45 GW of modules Vs 11.5 GW of Cells (Websol is 0.6 GW cell & 0.5 GW Module).
The Solar Cell demand-supply gap is huge for next 5-6 years. Absolute free run till 2027 for Websol as proposed capacities will come live by that time. Even then if Govt. Policies remains same, Solar Cells will the most sought after product till 2023.

However, Websol’s phase-2 is big dream for their size as funding requirement would be close to 1000 Crores to establish 1.8 GW Cells. In the recently held AGM, Mr. SL Agarwal hinted on collaborating with a US based company for export of modules. Ideally, they should also bring in some manufacturing collaboration for funding needs.
It should be noted that Vikram Solar’s existing factory is located just beside Websol’s Falta SEZ, Kolkata. You can read this DRHP to understand the Govt. subsidies and tax related benefits of SEZ players which will in turn reduce their overall manufacturing cost. Just my opinion.

Looks like a turnaround is on the card, only risk are the investors’s shady tricks

That’s the beauty of Bull run. Stocks don’t run for 2-3 weeks and we start doubting the story

I don’t think there is any weakness in the stocks or anything wrong with the transformer sector per se. These stocks have given massive returns in last 1 year and some profit booking and consolidation is understandable.

Let the earning season commence and based on the results, we’ll see interest in these stocks coming back.

Disc- Invested in Voltamp