Waaree Renewable Technologies
Stock Snapshot
Price Performance
Vista Outlook
Basis of our Recommendation
Waaree Renewable Technologies is strategically positioned to capitalize on India's ambitious renewable energy targets, particularly through its expansion into Battery Energy Storage Systems (BESS) and hybrid projects. Management's positive outlook is underpinned by a robust order book and a shift towards integrated energy solutions, which enhances revenue visibility despite potential margin pressures from the integration of lower-margin transmission and distribution (T&D) operations. Vista's financial outlook reflects a moderate revenue growth trajectory, supported by stable margins and a conservatively financed balance sheet. The expected upside of approximately 63.77% aligns with the company's long-term growth potential, driven by favorable government policies and increasing corporate demand for green energy. However, challenges such as competitive pressures, regulatory risks, and the complexities of large-scale project execution remain pertinent. Over the next 12-24 months, key opportunities include leveraging the growing demand for renewable energy and enhancing operational efficiencies, while watchpoints include the successful integration of the T&D business and maintaining margin stability amidst aggressive market competition
Why We Like This Stock
- Strong order book of 2.83 GWp and a growing O&M portfolio provide revenue visibility
- Strategic pivot towards BESS and hybrid projects aligns with India's renewable energy goals
- Government support and increasing corporate demand for green power create favorable market conditions
Things To Watch Out For
- Integration of the lower-margin T&D business poses risks to overall profitability
- Competitive pressures from new entrants may impact market share and pricing power
- Regulatory shifts and execution complexities in large-scale projects could affect operational efficiency
Key Parameters
Financial Snapshot
View Technicals Analysis →| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 876 | 1,598 | 3,331 | 3,649 | 5,687 |
| Profit Before Tax (Cr.) | 198 | 300 | 641 | 764 | 1,167 |
| PBT Margin | 22.6% | 18.8% | 19.3% | 20.9% | 20.5% |
| Net Profit (Cr.) | 145 | 229 | 480 | 573 | 875 |
| Earnings Per Share | 13.9 | 21.9 | 45.9 | 54.8 | 83.7 |
Analyst Recommendations
No analyst recommendations available.
Company Overview
Show Company Profile
Waaree Renewable Technologies Limited engages in the generation of power through renewable energy sources in India. The company offers ground mounted solar; capex model; resco opex; rooftop solar; floating solar; and operations and maintenance solutions. It also provides engineering, procurement, and construction (EPC) services. The company serves the individual, industrial, and commercial sectors. The company was formerly known as Sangam Renewables Limited and changed its name to Waaree Renewable Technologies Limited in July 2021. The company was incorporated in 1999 and is headquartered in Mumbai, India. Waaree Renewable Technologies Limited operates as a subsidiary of Waaree Energies Limited.