OMKARA CAPITAL – DAILY NEWSLETTER (3rd June, 2026)
Big news for Borosil Renewables: the CVD on Malaysian imports has been extended for five years.
Headlines
• US delegates are in India for the US–India trade deal; hopes are centred on a positive outcome this week.
• Weekly Cabinet meeting today at 11:30 am (honestly, not many expectations).
• Iran launched several ballistic missiles towards regional neighbours, though none hit their intended targets.
• Trump says reports claiming the US and Iran have stopped speaking are "fake news".
Stocks in news
• Big news for Borosil Renewables: the CVD on Malaysian imports has been extended for five years. The industry had been pushing for this, as 15–20% of solar glass imports came from Malaysia at 10–15% discounts. Those imports can no longer enter at a discount for the next five years — only at the same price the domestic industry sells at. Continuity of the policy framework is therefore critical: China was already covered until 2029 (MIP), and Malaysia is now locked in until 2031. This provides long-term earnings clarity and a margin uplift.
• Textile stocks are in focus as the US–India trade deal nears finalisation.
• Tega earnings call — key takeaways: consumables 15% CAGR reaffirmed despite a flat FY26; equipment growth guided at +25% in FY27; blended EBITDA margin 21–22%. Q1 FY27 will absorb ~$30M of Mollycop acquisition/settlement costs; the pending order backlog (₹9,060M executable) must convert; Chile regulatory approval and the Q3 commissioning date remain to be confirmed or may slip.
• KRN Heat Exchanger raises ₹350 Cr via QIP at ₹1,060/share.
• JM Financial on solar equipment stocks: their new pecking order is Emmvee (TP ₹377, +24%) > Premier (TP ₹1,220, +16%) > Waaree (TP ₹3,509, +13%) > Vikram (TP ₹205, +4%).
MARKET COMMENTARY: US–India deal or US–Iran deal — which comes first?
Every day, we wake up hoping for good news from the US–Iran war front or from the Indian government. Meanwhile, the only news filling my social feed (I use only Twitter) is Claude / AI / TSMC / NVIDIA / Google — there is so much disruption happening around the world. Even Uday Kotak has expressed frustration with Indian entrepreneurs, calling it a wake-up call for companies to invest in the future regardless of present conditions.
India has never been a disruptor, barring a few companies. Our strength has always been scale — in engineering, pharma, consumption, and financial services. With the world racing to dominate AI, and given the level of capital commitment and disruptive mindset required, we are unlikely to win that race; we are better off focusing on where our strengths lie. We may not produce USD 1–5 trillion companies, but we can certainly build USD 10–50 billion companies if execution is done well. Very few midcaps become large-caps, so let us focus on long-term structural bets where supply chain economics are locked in.
On the domestic front, we were pleased with earnings and the monthly auto sales (healthy growth in 2W/PV, while CVs remained slow). Amid all the news flow (which we cannot avoid), our focus is on the ongoing conferences. There are a number of conferences underway where investors are showing strong interest in many companies — perhaps because there is little else to act on at the moment.
I continue to expect two significant positive developments this month: the US–India deal and some breakthrough on the US–Iran front. Hopes for policy action from the Indian government remain, but they are dimming with each passing day.
We are heads-down this week rolling out our new website for our investors. A key new feature will be a “Forum” — a platform to exchange ideas and discuss both established and emerging companies, similar to Twitter. We have also revamped the data room: simple, clear, updated, and no-nonsense. We will continue to add features over time, including earnings, concall, and conference key takeaways, with the aim of building a system that is fully transparent for investors. Thank you, as always, for your patience.
Warm regards,
Omkara Capital Private Limited, India
www.omkaracapital.in
Disclaimer: This newsletter is for informational purposes only and does not constitute investment advice. Please consult your financial advisor before making any investment decisions.
