Disclosure: Invested
I spotted these paragraphs in the Annual Report as well and to be frank I feel that the company calling these high entry barriers is a bit of a stretch, At best I feel these factors give them somewhat of a specialization advantage as compared to say a regular EPC player in say road/real estate construction. But if competition did decide to enter these would most definitely not stop them. During the last couple of concalls they were on record saying they were not focusing too much on the Middle East (where they did some really major projects) due to the entry of Chinese competition.
That said my feeling is that the next couple of years should see them bag a plethora of orders purely on account of the interest in solar projects all across the world. Most Governments are using renewable energy as a focus area to revive economic growth so that should see them grow.
Long term i have my doubts but in the short to medium term this should be a real cash generator. Too bad that they have messed up on the promoter debt repayment totally. And the minority investors have been needlessly dragged into the Tata Mistry fight.
A little bit of proactive communication from the management would have done a world of good.
Will have to see their communication in the upcoming result con call.