In today’s briefing:
- Sarla Performance Fibers – India’s Prominent Player in Man Made Textile Yarn – Key Growth Drivers
- Farmers Launch Stir Phase II; Rubber Board Warns Of Price Fall
- Why Does JSW Energy’s Battery Foray Go into Deep Trouble?
- The Beat Ideas: Synergy Green~Riding the Windmill Capex Theme
Sarla Performance Fibers – India’s Prominent Player in Man Made Textile Yarn – Key Growth Drivers
- Sarla Performance Fibers Limited is engaged in the manufacturing and export of high-performance polyester and nylon yarns.
- Increasing capacity utilisation towards higher value-added products, such as Nylon 6 & 66 and high-tenacity yarn, is expected to boost revenue and improve operating margin.
- A valuation re-rating is also possible if the return metrics (RoE, RoCE) improve as the utilisation level rise.
Farmers Launch Stir Phase II; Rubber Board Warns Of Price Fall
- Farmer body asks farmers not to go for ‘summer tapping’
- Rubber Board exhorts farmers to up tapping to discourage imports
- Farmers allege Rubber Board catering to interests of tire-makers
Why Does JSW Energy’s Battery Foray Go into Deep Trouble?
- JSW Energy faces a significant regulatory setback with the rejection of its proposed tariff for a 500 MW/1000 MWh Battery Energy Storage System project by the Central Electricity Regulatory Commission.
- This decision highlights the vulnerability of renewable energy ventures to regulatory changes, potentially leading to project delays, tariff renegotiations, and broader market uncertainty, which could impact India’s renewable energy goals.
- The impact of this could be multiple ripple effects including project delays, financial loss, viability concerns of battery storage business.
The Beat Ideas: Synergy Green~Riding the Windmill Capex Theme
- Synergy Green Industries (SYGIL IN) Expansion of foundry to add new capacity to supply new customers (Envision). Company plans to increase its capacity from 30,000 MT to 45,000 MT.
- Machining unit to help improve margins as 50% of total machining would be done in-house. Solar power to add to EBITDA margins as electricity costs account for 8% of revenue.
- Execution by management has been commendable due to experience in the industry.
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