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Of the many industries facing disruption, energy sector tops the list. It's not just the oil and gas prices. The rise of renewable energy, especially solar energy, is an emerging threat for conventional energy companies.
Does this mean every direct player in solar sector stands to gain?
We don't think so. In India itself, solar tariffs are dropping to record lows. Solar developers recently bid a record low tariff of Rs 2.44 per unit. With average tariffs for thermal plants hovering at Rs 3.2 per unit, solar tariffs are nearly 25% cheaper.
As the solar developers get aggressive to win bids, we wonder if the projects are even viable at these ultra-low rates.
This is another example where rise in an industry may not benefit the direct players. That said, there could be some indirect players that could gain from the government's ambition to add 100 GW of solar power capacity till 2022.
These indirect companies, that stand to gain from supplying to a rising trend or direct players are what Hidden Treasure team hunts for. In a recent report, we have uncovered a batch of small caps that could lead to what we call 'backdoor profits'. Download a copy of our new FREE report, Backdoor Profits - The Small-Cap Way to Big Returns, to know about these stocks.
Data Source: Indian Solar Market Database
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