Solar companies face profit slowdown in next three years
after close1 source ↓written by the desknot a recommendation
Indian solar companies are currently enjoying super-normal margins due to import restrictions and limited domestic manufacturing capacity. However, a report by DAM Capital warns that rising competition and capacity expansion will likely normalize profitability over the next three years. This shift may impact trading sentiment in the solar sector.
• Domestic manufacturers are earning exceptionally high returns now.
• Increased competition expected as more factories open.
• Profit margins may decline as supply rises.
Not investment advice. For informational purposes only.