In 2017, it hit life time high, series of UC & thereafter to 52 week low, with no investor interest.
Now in 2022, ( 2017 to 2022) 5 to 6 year recoating cycle has brought in super profit. See series of UC & a new life time high, perhaps at ₹1000 , before the eventual downcycle.
Thanks a lot for your valuable feedback.
Denora has any service or product offering related to green hydrogen production value chain?
Definitely, Green hydrogen is produced by electrolysis of water. Denora is global leader in electro chemistry with several, secret & patented technologies.
Essentially, there is a membrane coated tank , containing water, with electrolyte solution added. inside the membrane tank , there is a cathode & anode, which are electrodes, coated with inert metals, & when electric current is passed, electrolysis of water occur, releasing purest form of Green hydrogen & water. During the process of electrolysis, over a period of 4 to 5 years, both electrodes are eaten away, due to chemical reaction & need to be recoated , with inert metals, before being eaten away, to prolong their life.
Now, unfortunately, Denora india, does not produce Green hydrogen, but it’s unlisted global entities do it with elan.
Will Denora india, produce Green hydrogen in future?
I have no answer at this point of time.
Now , I do not think, Denora india will produce Green hydrogen, coz of substantial investment involved.
However Reliance industries will certainly produce Green hydrogen. Now for producing Green hydrogen you need electrodes with membrane cells .
Now as electrolysis proceeds, electrodes, gets eaten away & need to be replaced, which is expensive. Therefore, Denora provide AMC for periodic coating & recoating of electrodes to enhance its life span to avoid replacement ( akin to retreading of truck tyres)
Denora has gone up, substantially from the time I recommended it. Do remember that no company goes up in a linear equation & there will be periods of underperformance.
There may be more upside in Denora, but I inform you, that I have fully exited, Denora, as price appreciation has been substantial & being a cyclical play, it is likely to underperform , when the down cycle , begins .
There seems to be lot of interest being generated on green hydrogen projects. The govt. announcement of pli in green hydrogen is sure to pique considerable interest from the big guns as well as the state run energy giants. De Nora has the necessary technology to support electrolyser manufacturing which is the most important factor in green H2 production.
Sharing the govt. notification on green H2 subsidy as well as article in FT on this topic.
I just have 1 question, can electrodes be manufactured for the Chlor alkali industry used for Green Hydrogen too, for the process of electrolysis? are electrodes fungible in nature?
if not, what is a specific reason for this?
Electrodes are required for manufacturing Green hydrogen & it’s a consumable & will be fully used up in 3 years, but life of these electrodes can be prolonged by recoating.
Denora manufacturers electrodes for all requirements, as well as recoating thru Annual maintenance contract to prolong the life span of electrodes.
Denora has run up substantially from levels of ₹140 to 250, 4 years back. It’s a cyclical business with periods of peak & under performance. At current levels best to book profit. Fresh buying not advised
Mukul Agarwal has exited his 1.8% stake in the company in the Q3FY24 Quarter.
The results look decent and with price correction in the past few months, it looks like a good price to enter. Any suggestions?
Disclosure: tracking.
