Synopsis: Waaree Energies has been assigned a robust 77% upside potential by Motilal Oswal, citing quite a few positives, together with the corporate’s trade presence and a robust order ebook. Together with these, it talked about some draw back dangers as properly, akin to enormous US publicity, heavy competitors, and many others.
The shares of this main photo voltaic PV module producer are in focus after Motilal Oswal cited a robust upside within the inventory value, citing a number of positives. On this article, we are going to dive extra into the main points of it.
With a market capitalization of Rs 95,704 crore, the shares of Waaree Energies Ltd are at the moment buying and selling at Rs 3,327 per share, up by 1.5 % from its earlier day’s closing value of Rs 3,276.20 per share. Within the final one 12 months, the inventory has delivered a return of 18 %, as in comparison with NIFTY 50’s return of 6 %.
Analyst Feedback
Main home brokerage Motilal Oswal, as a part of its Bull case, has set a goal value of Rs 5,895 per share, indicating an upside potential of 77 % from its present market value.
The brokerage cited that Waaree Energies is one in every of India’s largest makers of solar energy tools. It has a major capability of 5.4 GW for cells and 16.1 GW for modules, together with a 2.6 GW plant within the US. This offers Waaree a robust market share of 21.6 % in India’s photo voltaic module sector, clearly main forward of its rivals.
The corporate has rapidly responded to coverage and market modifications, particularly by establishing native cell manufacturing early on. This transfer helps the federal government’s drive for home manufacturing below the Authorised Record of Fashions and Producers (ALMM). Waaree additionally plans to extend its US capability from 2.8 GW to 4.2 GW by the tip of FY26, exhibiting considerate planning as international commerce insurance policies and tariffs change.
Waaree’s built-in enterprise mannequin, which covers the entire photo voltaic worth chain from modules to completely different uncooked supplies, permits it to handle prices and provide extra successfully. Moreover, the administration expects an EBITDA of Rs 5,500–6,000 crore for FY26.
Motilal Oswal predicts that Waaree’s EBITDA and PAT will develop at a sturdy CAGR of 43 % and 40 %, respectively, from FY25 to FY28. The brokerage additionally anticipates that new companies will contribute about 15 % of EBITDA by FY28, reflecting the corporate’s efforts to diversify.
Nonetheless, dangers nonetheless exist, together with rising competitors, reliance on the US market, and challenges in executing capital-heavy expansions like wafer and cell manufacturing. Alternatively, in a constructive state of affairs, if pricing and utilization enhance by simply 5 %, Waaree’s earnings may considerably exceed present estimates, positioning it as a robust long-term progress story within the renewable vitality sector.
Q2 Highlights
Waaree Energies Ltd has reported an working income of Rs 6,066 crore in Q2 FY26, representing a 70 % progress in comparison with Rs 3,574 crore in Q2 FY25. Relating to its profitability, it reported a internet revenue of Rs 878 crore in Q2 FY26, a staggering progress of 134 % as in comparison with Rs 376 crore in Q2 FY25.
The corporate has a sturdy order ebook of Rs 47,000 crore, consisting of 24 GW of tasks. Of this whole order ebook, a staggering 59.5 % is derived from abroad shoppers, whereas the remaining 40.5 % is derived from Indian shoppers, making it extraordinarily susceptible to any shift in international insurance policies like tariffs.
The inventory delivered an distinctive ROE and ROCE of 27.42 % and 34.94 % respectively, and is at the moment buying and selling at a P/E of 35.41x, which is in step with its sector common of 35.40x.
Waaree Energies is the most important photo voltaic panel producer in India and has been concentrating on making high quality and low-cost photo voltaic panels as a method of encouraging using clear vitality and decreasing carbon emissions since 2007. It runs 5 manufacturing models in India and can also be current within the international markets. The corporate has an enormous presence in India, serving over 700 districts, and likewise operates in 25 nations, together with the US, which is a serious shopper of the corporate.
Written by Satyajeet Mukherjee
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