Want to play the solar boom in India? This stock is your best bet | Economic Times

MUMBAI: Borosil Renewables, India’s only solar glass manufacturer, could benefit from the imposition of 40 per cent customs duty on solar modules and 25 per cent on solar cells. The sharp increase in prices of photovoltaic glass (PV) due to high demand could also boost its share price, analysts said. The stock has rallied 56 per cent in the past one month and on Monday climbed 4 per cent in a weak market to Rs 173.65.Borosil last week raised Rs 200 crore through qualified institutional placement for expanding its capacities. FPIs have also increased their stake from 0.42 per cent to 10.08 per cent in the QIP.Prices for glass that coat photovoltaic panels have risen over 75 per cent since July, and manufacturers are struggling to produce it in sufficient quantities. The shortage comes as the solar industry turns toward bifacial panels, which increase both power output and glass requirements.Borosil refurbished an old furnace last year and added a second furnace with a capacity of 240 MT/day for Rs 227 crore. It is also planning to install a third furnace with an installed capacity of up to 500 MT with a capex of Rs. 500 crore. New capacity will be operational by the first quarter of 2023.“Borosil Renewable is the best stock to play the solar boom in India,” said Vikram Sharma, analyst, Niveshaay. “It can achieve a turnover of Rs. 1,000 crore after completion of announced capex.”Borosil’s EBITDA margin contracted to 6-7 per cent in the first half of FY 20 due to decline in selling price and increase in operating costs, resulting from poor performance of its old furnace before refurbishment. However, in the first half of FY21 margin improved to 25 per cent.