Waaree Energies
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
Waaree Energies is navigating a complex landscape characterized by aggressive capacity expansion and a robust order book of 25.2GW, despite facing margin pressures from raw material inflation and delayed exports. Management's focus on vertical integration, particularly in scaling cell production and enhancing cost competitiveness, is crucial for improving profitability. Vista's financial outlook reflects a cautious yet optimistic stance, anticipating revenue growth driven by substantial investments in manufacturing capabilities and a clear roadmap for capacity commissioning. The expected upside is supported by the company's strategic initiatives, including diversification into battery energy storage systems (BESS) and green hydrogen, which align with the growing demand for renewable energy solutions. However, key risks such as global commodity price volatility and execution delays in capacity expansion remain pertinent. The solar energy sector's favorable dynamics, including improving pricing power and stable margins, further bolster Waaree's growth potential. Over the next 12-24 months, opportunities lie in leveraging IRA incentives through US manufacturing and expanding into adjacent markets, while watchpoints include the execution of the INR 315bn capex plan and potential regulatory shifts affecting the solar sector
Why We Like This Stock
- Strong order book of INR 615bn supports future revenue growth
- Strategic focus on vertical integration and capacity expansion enhances cost competitiveness
- Diversification into BESS and green hydrogen aligns with long-term renewable energy demand
Things To Watch Out For
- Margin pressures due to raw material inflation and delayed exports could impact short-term profitability
- Execution risks associated with the ambitious INR 315bn capex plan may hinder growth targets
- Global commodity price volatility poses a significant risk to cost structures
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 11,398 | 14,444 | 26,537 | 28,678 | 37,220 |
| Profit Before Tax (Cr.) | 1,361 | 2,555 | 5,347 | 4,780 | 6,436 |
| PBT Margin | 11.9% | 17.7% | 2014.9% | 16.7% | 17.3% |
| Net Profit (Cr.) | 937 | 1,947 | 4,071 | 3,645 | 4,698 |
| Earnings Per Share | 31.3 | 65.6 | 135.5 | 121.3 | 163.3 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| Anand Rathi | ▲ Buy | 3,333 | 31-Jul-2026 |
| Bernstein | ► Hold | 2,539 | 14-Jul-2026 |
| Elara Capital | ► Accumulate | 2,960 | 31-Jul-2026 |
| Emkay Global | ▲ Buy | 4,260 | 01-May-2026 |
| JMFinancials | ► Hold | 3,509 | 09-Jun-2026 |
| Kotak Securities | ▼ Sell | 2,900 | 06-Jul-2026 |
| Moneycontrol | ► Equalweight | nan | 04-May-2026 |
| Motilal Oswal | ▲ Buy | 3,825 | 22-Jun-2026 |
| Nomura | ▲ Buy | 3,750 | 30-Jul-2026 |
| Prabhudas Liladhar | ▲ Buy | 3,280 | 31-Jul-2026 |
| UBS | ► Hold | 3,100 | 14-Jul-2026 |
Company Overview
Show Company Profile
Waaree Energies Limited manufactures and exports solar photovoltaic modules for residential, commercial, industrial, and institutional projects. It operates through three segments: Solar Photovoltaic Module Manufacturing, EPC and O&M Solutions, and the Independent Power Producer. The company offers HJT, TOPCon, mono PERC, polycrystalline, flexible, and special modules; off-grid and on-grid inverters; and solar products, such as solar streetlights, water heaters, and water pumps. It also provides engineering, procurement, and construction solutions; and operation and maintenance services; and operates as an independent power producer, which generates renewable energy. The company was founded in 1989 and is based in Mumbai, India.