New Delhi: Amid the global energy crisis, shares of Borosil Renewables, the only producer of solar glasses in India, have been on a roll recently. The scrip has jumped as much as 45 per cent in the last one month.
According to market experts, the recent reforms and power shortage have fuelled a rally in power stocks and investors are now focussed on the alternatives to traditional energy. Richa Agarwal, Senior Research Analyst, Equitymaster, said, “With Reliance’s back-to-back acquisitions of REC Solar Holdings and Sterling & Wilson Solar, the green energy theme has gained further momentum.”
Shares of Borosil Renewables have rallied over 1,400 per cent to Rs 509.70 from Rs 33.6 in April 2020. But the scrip has hit the lower circuit in the previous two sessions, losing over 10 per cent of its value from peak. “However, cheaper imports have always dominated demand and spoiled the economics and viability for domestic producers. And that’s a risk investors need to watch out for in these stocks,” Agarwal added.
Shares of Borosil Renewables were locked in the seller circuit of 5 per cent, to Rs 446.80, on Thursday. The recent round of correction aside, the scrip has soared 333 per cent in the last one year.
Rahul Sharma, co-founder of Equity99, said the firm had raised 200 crore via qualified institutional placement for expansion, as it expected to more than double its solar glass production capacity to 950 tonnes a day from 450 tons a day to 950 TPD.
Sharma is bullish on this counter but does not recommend any fresh buying at current levels. He suggested a buy-on-dips approach on the stock.Internet Explorer Channel Network