Insolation Energy SME IPO

Sharing my notes on Insolation Energy Ltd



Nice write up.

Some industry insights …

Indian capacities are under utilized till date due to cheap chinese import.
My calculations - china supplied at approx 16000 rs/kw while indian players are at 20000 rs/kw. After 40% duty, Indian module players are in sweet spot.

But if module co wants to grow, whole ecosystem must be in good shape, many EPC players are feeling heat of rising module prices. As a whole industry, this is a risk and expecting gov action soon in this regard.

Vikram solar IPO coming, co aiming 5 GW capacities (production 500 mw in fy21 - 22 !!) May list at Mcap of 5000 cr or more (total guess, do your own study for this point)

In china one listed module players - Trina solar having 50 GW capacity, having 1,50,000 cr RS mcap, 8-10 % ebitda margin, 3.5-4% npm.

In china, single co has more capacity than whole india, so if gov supports, think of potential, on a flip side, there are less entry barriers here.

Some interesting articles …

Disc: Invested in INA on listing day.

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Thank you for sharing your input. It is really helpful.

As expected, things are not moving at EPC execution level due to mismatch in input cost and PPA price.

Some hope if input cost goes down, interesting article, solar cells at 10000-11000rs / kw and solar modules at 20000-21000rs / kw in china now, further downside expected. In past, indian solar module manufacturing companies have grown well at lower pricing points.

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