Thread by @LnprCapital

BOROSIL RENEWABLES Analysis !!
#BorosilRenew

A detailed thread below 🧵🧵

About -

Borosil Renewables Ltd is India's 1st & only solar glass manufacturer. Co is part of the Borosil Group that manufacturers a range of lab wares, scientific wares & consumer ware products. The co recently expanded the existing production capacity to 2.5GW per annum.

Financials -
Q3FY22 (YOY)

Revenue were at Rs 174cr⬆️23%
Net profit at Rs 46cr ⬆️332%
Eps at Rs 3.5⬆️286%

Growth Drivers -

▪️ National Solar Mission targets 100GW of installed capacity by 2022 which is targeted to grow to 300GW by 2030. Needs annual solar installations of 25GW to achieve the target.
▪️Kusum Program targets 30.8GW by 2022 with an incentive for farmers to install *

* solar pump/grid connected projects etc. with domestic content requirement for solar cells & modules to boost domestic manufacturing. It is expected to be 110GW by 2030.

▪️ PLI scheme worth Rs 4500cr for high efficiency solar modules to boost domestic manufacturing.

▪️ Solarization of Railways target 500MW of rooftop generation capacity by 2022 & 20GW of land capacity to be installed by 2030 for self sustenance.

Product Portfolio -

Co manufacturers High Performance Solar Glass for :-

▪️ Utility scale ground solar PV
▪️ High performance Green House
▪️ Solar roof-top, water pump
▪️ Bifacial, Glass-glass, BIPV
▪️ Solar thermal projects

Co manufacturers solar glass of customized sizes -

▪️ Glass for 72/60 cells modules & other size specified by customers.
▪️ Manufactures larger sizes of tempered glass for modules with M10/M12 cells.
▪️ SAM glass : Glass of small area modules.

Value added products -

▪️ SHAKTI : High efficiency solar glass in MATT-MATT finish.
▪️ SELENE : Anti-glare solar glass for PV projects near airports.
▪️ Fully tempered 2mm solar glass.

Borosil is the only solar glass manufacturer in the World who has been able to successfully remove the ANTIMONY from solar glass. The technology is patented & have a certification from SPF, Switzerland. It has been proved that antimony free glasses gives superior performance.

Products to meet the evolving requirements -

Solar PV market is moving towards :
▪️ Bifacial modules
▪️ Glass to glass modules
▪️ Frameless modules

In order to achieve the optimum module weight, the solar PV market is moving towards use of Thinner glass

As leading supplier of fully tempered thinner glass (upto 2mm) they are poised to serve the emerging segments & some of their customers have already obtained certification for 2.8 & 2.5mm glass

Strong Domestic & International presence -

▪️ Co has a global presence with products matching international standards & quality requirements with 18-20% pf revenue coming from exports.

▪️ Sole manufacturer of solar glass in India with lower lead times & flexible order *

* quantities supplying to over 100 domestic customers.

▪️ Majority international customers based in Western Europe/Turkey, Russia & Mena region.

▪️ Co developing new segments like High performance greenhouses & BIPV etc.

Borosil Renewables shareholding -

Promoters - 61.7%
FII - 5.4%
DII - 0.1%
Public - 32.8%

Key Risks -

▪️ Growth of solar energy sector in India is dependent on government to some extent, any delay or change in policy can lead to decrease in capacity utilization.

▪️ China as the world's largest PV glass producer accounts for over 95% of total solar glass capacity.*

* Any change in policy or supply/demand mismatch can result in surplus capacity for modules/glass, which can enhance dumping at discounted prices.

Our Analysis -

▪️ Borosil Renewables has shown strong performance & is likely to witness good traction in the long term with Govt impetus on solar energy.

▪️ Govt designed programs like SECI scheme, KUSUM & CPSU to support domestic panel manufacturers will also provide *

* additional impetus for better performance.

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