1. Buy or Sell at your own risk
2. Don't risk more than 1%-2% of your capital as stop loss
3. Position Size formula:- Stop Loss Amount/(Buy Price-Initial Stop Loss Price)
4. Sell on initial stop loss hit or daily RSI closing below 40
5. Some other ways to sell stocks can be
a. 25% or 50% up in three weeks or less
b. Weekly tailing tops with high volume
c. Exhaustion gaps
d. Heavy daily volume without further upside
e. Largest one day price drop
BORORENEW
is trading in a range since December 2021. On 5th April 2022 it broke out of a consolidation zone within the range, went back below the support on 12th April and gave a bounce back today. It's a buy with a stop at ₹610.
Other fundamentals:
1. BRL is engaged in the manufacturing of low iron solar glass for application in photovoltaic panels. They are the first and the only producer of solar glasses in the country. The Company’s thinner fully tempered solar glass (2mm and 2.5 mm) offers niche products for glass modules.
2. BRL has a 40% market share in the Solar Glass segment. BRL has expanded its glass capacity from 180 TPD to 450 TPD, which is equivalent to the production of 2.5 gigawatts of solar modules annually.
3. During FY20, the company successfully raised 200 Cr through QIP and the money raised through the issue will be utilized for its expansion. The company will more than double its solar glass production capacity from 450 tons per day to 950 TPD. Capacity is being further expanded from 950 TPD to 1950 TPD in phases by 2024.
4. Increase in installed capacity of Renewable Energy is a high priority of government of India which continues to provide strong thrust to the installation of solar power projects. The government has announced three major steps underlining its commitment to the establishment of a strong domestic solar manufacturing eco-system. The first is the announcement of an additional allocation of Rs.19500 Crores under the PLI scheme for solar cells and modules raising the total allocation to a very impressive Rs.24000 Crores. The second is the formal announcement of basic customs duty on solar panels at 40% and on solar cells at 25% effective from 1st April 2022. The third is the scheme of Approved list of Models and Manufacturers introduced some months ago whereby effectively only Indian manufacturers of solar modules are able to supply to many types of government tenders which have now been extended to open access and net metering projects as well. (excerpt from investor call February 2022)
5. Even though 14 Gigawatts of solar module manufacturing capacity exists in India, actual production was about 5.5 Gigawatts during the financial year 2021. We see installed capacity rising to 50 Gigawatts of solar panels within the next three years. This will give a great boost to domestic production of solar equipment in India causing a major shift away from imports from China to sourcing from domestic manufacturers. Consequently, we expect increased demand for solar glass in India. We are in advanced discussion with many of these manufacturers who are all looking to have a local source of supply for solar glass.
6. The European Union has launched a solar accelerator program to promote production of solar modules in Europe. Solar components are likely to enjoy a sweet spot for the next many years. It is heartening to note that the solar installations in the country have picked up momentum in the current year. The installations in the first nine months of FY2022 have been 9.2 Gigawatts, which has matched the earlier best for a full year. This trend is expected to gain further ground and the level of annual installations is expected to accelerate to significantly higher levels. There is a growing demand from export customers looking at the expected significant rise in local production of solar modules in major markets i.e. to say Europe and USA. We see an attractive future growth in the company’s exports.
7. Borosil Renewables is currently undertaking a Brownfield capacity expansion, a third solar line with a capacity of 550 metric tons to meet the growing demand. This will enhance our capacity from 450 tons per day to 1000 tons per day. Commercial production from SG-3 is expected to commence in the second quarter of FY2023. Further, the company’s board has already approved further expansion of capacity through Solar Glass 4 & 5 in order to raise the capacity from 1000 tons to 2000 tons per day. Work on the SG-4 project is expected to commence during the second quarter of CY2022. Given the lead times required for capacity expansion this additional capacity can come on stream in the third quarter of CY2023.
8. The company has delivered good profit growth of 25.44% CAGR over the last 5 years.
9. Quarter sales growth at 20%, quarter profit growth at 332%, TTM sales growth 64% and TTM profit growth at 595% (December quarter).
10. Debt to equity at 0.10 (less than 1 is good), Interest Coverage at 62.5 (greater than 3 is good), Current ratio at 5.60 (greater than 1.5 is good).
11. Borrowings came down from 92Cr. in Mar'20 to 71Cr. in Sep'21.
2. Don't risk more than 1%-2% of your capital as stop loss
3. Position Size formula:- Stop Loss Amount/(Buy Price-Initial Stop Loss Price)
4. Sell on initial stop loss hit or daily RSI closing below 40
5. Some other ways to sell stocks can be
a. 25% or 50% up in three weeks or less
b. Weekly tailing tops with high volume
c. Exhaustion gaps
d. Heavy daily volume without further upside
e. Largest one day price drop
BORORENEW
is trading in a range since December 2021. On 5th April 2022 it broke out of a consolidation zone within the range, went back below the support on 12th April and gave a bounce back today. It's a buy with a stop at ₹610. Other fundamentals:
1. BRL is engaged in the manufacturing of low iron solar glass for application in photovoltaic panels. They are the first and the only producer of solar glasses in the country. The Company’s thinner fully tempered solar glass (2mm and 2.5 mm) offers niche products for glass modules.
2. BRL has a 40% market share in the Solar Glass segment. BRL has expanded its glass capacity from 180 TPD to 450 TPD, which is equivalent to the production of 2.5 gigawatts of solar modules annually.
3. During FY20, the company successfully raised 200 Cr through QIP and the money raised through the issue will be utilized for its expansion. The company will more than double its solar glass production capacity from 450 tons per day to 950 TPD. Capacity is being further expanded from 950 TPD to 1950 TPD in phases by 2024.
4. Increase in installed capacity of Renewable Energy is a high priority of government of India which continues to provide strong thrust to the installation of solar power projects. The government has announced three major steps underlining its commitment to the establishment of a strong domestic solar manufacturing eco-system. The first is the announcement of an additional allocation of Rs.19500 Crores under the PLI scheme for solar cells and modules raising the total allocation to a very impressive Rs.24000 Crores. The second is the formal announcement of basic customs duty on solar panels at 40% and on solar cells at 25% effective from 1st April 2022. The third is the scheme of Approved list of Models and Manufacturers introduced some months ago whereby effectively only Indian manufacturers of solar modules are able to supply to many types of government tenders which have now been extended to open access and net metering projects as well. (excerpt from investor call February 2022)
5. Even though 14 Gigawatts of solar module manufacturing capacity exists in India, actual production was about 5.5 Gigawatts during the financial year 2021. We see installed capacity rising to 50 Gigawatts of solar panels within the next three years. This will give a great boost to domestic production of solar equipment in India causing a major shift away from imports from China to sourcing from domestic manufacturers. Consequently, we expect increased demand for solar glass in India. We are in advanced discussion with many of these manufacturers who are all looking to have a local source of supply for solar glass.
6. The European Union has launched a solar accelerator program to promote production of solar modules in Europe. Solar components are likely to enjoy a sweet spot for the next many years. It is heartening to note that the solar installations in the country have picked up momentum in the current year. The installations in the first nine months of FY2022 have been 9.2 Gigawatts, which has matched the earlier best for a full year. This trend is expected to gain further ground and the level of annual installations is expected to accelerate to significantly higher levels. There is a growing demand from export customers looking at the expected significant rise in local production of solar modules in major markets i.e. to say Europe and USA. We see an attractive future growth in the company’s exports.
7. Borosil Renewables is currently undertaking a Brownfield capacity expansion, a third solar line with a capacity of 550 metric tons to meet the growing demand. This will enhance our capacity from 450 tons per day to 1000 tons per day. Commercial production from SG-3 is expected to commence in the second quarter of FY2023. Further, the company’s board has already approved further expansion of capacity through Solar Glass 4 & 5 in order to raise the capacity from 1000 tons to 2000 tons per day. Work on the SG-4 project is expected to commence during the second quarter of CY2022. Given the lead times required for capacity expansion this additional capacity can come on stream in the third quarter of CY2023.
8. The company has delivered good profit growth of 25.44% CAGR over the last 5 years.
9. Quarter sales growth at 20%, quarter profit growth at 332%, TTM sales growth 64% and TTM profit growth at 595% (December quarter).
10. Debt to equity at 0.10 (less than 1 is good), Interest Coverage at 62.5 (greater than 3 is good), Current ratio at 5.60 (greater than 1.5 is good).
11. Borrowings came down from 92Cr. in Mar'20 to 71Cr. in Sep'21.
Comment:
Up more than 10%, buy call given on 18th April.
Comment:
Be careful with borosil, high volume price correction on weekly charts.