The solar stock surged by 5% to hit the upper circuit after the company’s promoter increased their stake in the company
India’s solar stock energy sector is experiencing rapid growth, fueled by the country’s ambitious renewable energy objectives. As the world’s third-largest emitter of carbon dioxide, India is increasingly embracing solar power to diminish its carbon footprint and transition to cleaner energy sources. With ample sunlight, supportive government policies, and substantial investments in solar infrastructure, India has emerged as a global leader in solar capacity installation.
This sector not only promises a greener future but also generates employment opportunities, stimulates economic growth, and reduces reliance on fossil fuels. India’s dedication to solar energy establishes it as a significant player in the worldwide shift towards green energy. Amid this momentum, one company stands out with a notable increase in its order book.
Government subsidies play a crucial role in bolstering the solar sector by offering incentives such as subsidies, tax advantages, and favorable regulations. Programs like the Production-Linked Incentive (PLI) scheme, tax breaks on solar equipment, and Renewable Purchase Obligations (RPO) are driving domestic manufacturing and the adoption of renewable energy. Furthermore, the government is actively supporting solar projects through financial aid, simplifying land acquisition, and facilitating grid integration. These policies create a conducive environment for solar companies, enhancing their profitability and growth prospects. Consequently, solar firms can expand their operations, attract investments, and contribute significantly to India’s renewable energy targets.
In the financial realm, the shares of Borosil Renewables Ltd. have surged to a 5% upper circuit of Rs. 574 from the previous close of Rs. 547 as of January 08, 2025.
In a recent development, Kiran Kheruka, a promoter of Borosil Renewables, acquired 96,000 shares, representing a 0.07 percent stake in the company through open market transactions. This purchase, valued at Rs 5.4 crore, increased Kheruka’s stake from 3.57 percent to 3.64 percent.
When promoters increase their stake in a company, it is often seen as a positive sign, indicating confidence in the company’s future growth. This was evident in the case of Borosil Renewables, as their stock price surged, hitting its 5 percent upper circuit limit for two consecutive sessions following the promoter’s acquisition. This surge reflected the market’s optimism and enthusiasm for the company’s prospects.
Financial Performance
Borosil Renewables Ltd. saw a decrease in sales from Rs 402 crore in September 2023 to Rs 372 crore in September 2024. The company’s EBITDA also declined from Rs 32 crore to Rs 29 crore during the same period. Despite maintaining a steady operating profit margin (OPM) of 8% in both years, Borosil Renewables experienced a significant drop in net profit. While the company reported a net profit of Rs 30 crore in September 2023, it incurred a loss of Rs 13 crore in September 2024, highlighting a challenging financial performance over the past year.
Management’s Perspective
Kheruka, the company’s management, expressed optimism about the future of the solar industry, forecasting a ‘very good future’ ahead. He emphasized the high demand for solar energy in the country and the need for solar panels, indicating confidence in the company’s ability to sell its capacity effectively.
Company Overview
Specializing in the production of extra clear patterned glass and low iron solar glass, Borosil Renewables is a key player in the photovoltaic panels, flat plate collectors, and greenhouses market. As the largest manufacturer of low-iron textured solar glass in India, the company holds a market share of over 20%. Additionally, Borosil Renewables has a strong presence in Germany, where its overseas subsidiaries control 65% of the solar glass market. The company’s innovative solutions and strategic market positions have solidified its position as a leading player in the global solar glass industry.
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.