How long does it take to complete decision of anti-dumping duty probe?
No fixed timelines but generally between six to nine months. Larger players are getting into Solar Glass mfg (Adani) and it catches attention and interest of govt to protect domestic manufacturers
Reliance is coming up with module capacity of 20 GW, so it make sense for him to have Solar glass manufacturing unit as it will be a backward integration for it.
As supply is coming up it will impact margin even after removal of anti dumping duty.
Disclosure: Tracking position for understanding the sector.
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Company is planning to raise Rs.500 crore through rights issue details of which will be disclosed later. Meanwhile, the company has also filed a plea with government to impose anti dumping duty on solar glass imports from China, Malaysia and Vietnam.
Management also mentioned about similar timelines in last concall
The company has not given any update on the fund raising plan since its last update on 1 March 2024. Also, there is no update from the government on initiation of anti-dumping duty probe on imported solar glass from China and Vietnam. Do not know what the company is up to. Meanwhile, the world is facing a supply glut of solar modules
China’s Solar Sector Seen Facing Years of Oversupply, Low Prices
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Absolutely no issues related to product demand. So whatever manufactured are sold.
But what is the margin and what is the pricing power of company (due to anti dumping issue) to generate profits and ROE. Looking at financials, depreciation reported by BR is high in past
few quarters and that is hitting bottom line.
As a long term investor, how do we analyse such companies.
Financials perspective, if the bottom line hit is only due to depreciation, should we ignore high PE valuations ? In the long term, assuming, Chinese companies cannot keep dumping products at a sustainable pace, so pricing power will eventually happen. At the same time, competition due to domestic manufacturers are only increasing, so that may offset any advantage company had.
Net net, I am trying to get inputs on how Market view these companies and decide to put money.
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