“The export revenue is likely will face some amount of margin. Now that aside, in terms of just moving the panel prices and other related component prices have come down and are coming down very fast and therefore, it is good for many industries to move part of theirs, like Maruti is moving part of the requirement to solar from the traditional thermal, it reduces their overall bill over a longer period of time,” says Chakri Lokapriya, CIO-Equities, LGT Wealth.
Just before Prakash was speaking to us about this monsoon session, we were talking about Maruti and their investment in their solar capacity. Give us a sense of where you are seeing India’s solar space headed given there is so much buzz around it right now, on one side you have supply chain constraints coming in, on the other you have manufacturing PLI schemes that are looking to boost this sector as well. So, what is your visibility on this sector and where do you think we are headed?
Chakri Lokapriya: There are two or three things happening. One is, of course, while solar is clearly renewable energy, is a trend which is happening worldwide, after Trump that has slowed down because the number of subsidies have been removed. And therefore, the growth while organic or rather through acquisitions either way, but the government subsidies are likely to come down.
In other words, the export revenue is likely will face some amount of margin. Now that aside, in terms of just moving the panel prices and other related component prices have come down and are coming down very fast and therefore, it is good for many industries to move part of theirs, like Maruti is moving part of the requirement to solar from the traditional thermal, it reduces their overall bill over a longer period of time. Third, finally, India is adding a phenomenal amount of capacity equal to the entire what the EU power bill in a year, India is adding that over the next five years.
Just before Prakash was speaking to us about this monsoon session, we were talking about Maruti and their investment in their solar capacity. Give us a sense of where you are seeing India’s solar space headed given there is so much buzz around it right now, on one side you have supply chain constraints coming in, on the other you have manufacturing PLI schemes that are looking to boost this sector as well. So, what is your visibility on this sector and where do you think we are headed?
Chakri Lokapriya: There are two or three things happening. One is, of course, while solar is clearly renewable energy, is a trend which is happening worldwide, after Trump that has slowed down because the number of subsidies have been removed. And therefore, the growth while organic or rather through acquisitions either way, but the government subsidies are likely to come down.
In other words, the export revenue is likely will face some amount of margin. Now that aside, in terms of just moving the panel prices and other related component prices have come down and are coming down very fast and therefore, it is good for many industries to move part of theirs, like Maruti is moving part of the requirement to solar from the traditional thermal, it reduces their overall bill over a longer period of time. Third, finally, India is adding a phenomenal amount of capacity equal to the entire what the EU power bill in a year, India is adding that over the next five years.
Within the entire passenger vehicle space while, of course, M&M has been the leader, but that is a combination of not just PVs, but the SUV play and the farm equipment contribution as well to its overall pie, but if you had to put fresh money to work within the entire auto pack what would you do?
Chakri Lokapriya: In the four-wheeler space it is M&M, has greater legs to the whole upside. They have a couple of EVs coming out. They have their, of course, SUVs which are doing well and their IC engines continue to chug along and M&M always is a sum of part story, but the upside valuation-wise is stronger given that they have a wider range of products.
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