All of the solar companies is in under pressure is there any oversupply issue.
I donât think oversupply at this time
Waree utilisation stood 60-70% on current capacity of 16GW plan to expand upto 23GW
Vikram solar utilisation around 74% on current capacity of 4.5GW and capex to expand for 15.5GW
Both of them completing their capax plans by fy27.
But, street expecting oversupply after fy28-29 but, both of the management confident on the utilisation as well revenue front.
I did not gone through waree concal but Vikram solar management said that there is no slowdown on orders for upto next decade
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The share price is currently about 40% below its IPO level, which suggests the market may be seeing risks that outweigh our own assessment. Iâve been tracking this company for five years prior to its listing, invested at IPO, and even added more recently. Yet, I havenât observed meaningful traction in its retail business, especially when compared to Tata Powerâs strong positioning.
It seems the market is concerned about the lack of entry barriers in this sector,new players can easily set up operations, which limits the companyâs ability to build a defensible moat.
welcome any opposing views,perhaps there are angles Iâm missing, or strengths the market has yet to recognize.
Yes, debt is the concern here, at peak debt levels interest cost would be at sky and the depreciation as well, which may eat all profits even though EBITDA is expected to grow at a healthy rate of 50% CAGR.
Same was illustrated in one of the reports here..Need to confirm the debt levels with the management.
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