SWSOLAR - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 05 Nov 25, 7:43 am

Fundamental Rating: 2.9

🔋 Waaree Renewable Technologies Ltd (SWSOLAR) shows sector relevance and moderate capital efficiency, but high debt, earnings volatility, and weak technicals limit its fundamental appeal.

📈 Positive

• 🌱 Sector Alignment: Operates in renewable energy, aligned with national and global sustainability goals.
• 📊 Capital Efficiency: ROCE of 13.5% and ROE of 11.2% reflect decent operational performance.
• 📉 PEG Ratio: 0.30 suggests reasonable valuation relative to growth potential.
• 📈 EPS Recovery Potential: Despite current EPS of -₹100, the company has posted quarterly profits.

⚠️ Limitation

• 📉 High Leverage: Debt-to-equity ratio of 2.60 raises concerns about financial flexibility.
• 📉 Earnings Volatility: PAT fell from ₹78.4 Cr. to ₹54.9 Cr., a 26.8% decline.
• 📉 Weak Technicals: RSI at 34.2 and MACD at -8.78 suggest bearish momentum.
• 📉 Institutional Outflows: FII holdings declined by 1.30% and DII by 1.84%, indicating reduced confidence.
• 📉 Price Compression: Down nearly 64% from 52-week high of ₹605.

📉 Company Negative News

• Sharp decline in stock price and institutional holdings reflect market skepticism.
• EPS of -₹100 indicates accounting or reporting anomalies despite positive PAT.

📈 Company Positive News

• Continued project execution and expansion in solar EPC and module manufacturing.
• Government push for renewable energy could support long-term demand and policy tailwinds.

🏭 Industry

• Renewable energy sector benefits from policy incentives, ESG mandates, and global decarbonization efforts.
• Industry P/E of 22.1 reflects moderate valuation norms.
• Peers include Adani Green, KPI Green Energy, and Borosil Renewables.

🧾 Conclusion

• 📉 Entry Zone: ₹200–₹215 could be a speculative accumulation range based on RSI and support levels.
• 📈 Long-Term View: Hold with caution; monitor debt reduction and earnings consistency.
• 🔍 Valuation Watch: Wait for clarity on EPS normalization and margin stability before aggressive entry.