WAAREEENER - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.4
| Stock Code | WAAREEENER | Market Cap | 89,713 Cr. | Current Price | 3,119 ₹ | High / Low | 3,865 ₹ |
| Stock P/E | 22.5 | Book Value | 456 ₹ | Dividend Yield | 0.06 % | ROCE | 42.8 % |
| ROE | 35.4 % | Face Value | 10.0 ₹ | DMA 50 | 3,145 ₹ | DMA 200 | 3,020 ₹ |
| Chg in FII Hold | 0.15 % | Chg in DII Hold | 1.46 % | PAT Qtr | 934 Cr. | PAT Prev Qtr | 1,226 Cr. |
| RSI | 43.3 | MACD | 87.6 | Volume | 85,62,906 | Avg Vol 1Wk | 33,63,448 |
| Low price | 2,402 ₹ | High price | 3,865 ₹ | PEG Ratio | 0.22 | Debt to equity | 0.15 |
| 52w Index | 49.0 % | Qtr Profit Var | 60.8 % | EPS | 131 ₹ | Industry PE | 29.8 |
📊 Financials: WAAREEENER demonstrates exceptional efficiency with ROCE at 42.8% and ROE at 35.4%, reflecting strong capital utilization. Debt-to-equity ratio is low at 0.15, ensuring financial stability. EPS of ₹131 is robust, though quarterly PAT declined (₹1,226 Cr → ₹934 Cr), indicating short-term profit pressure. Overall, cash flows remain strong given consistent profitability.
💹 Valuation: Current P/E of 22.5 is below industry average (29.8), suggesting undervaluation relative to peers. PEG ratio of 0.22 highlights attractive growth potential at reasonable valuations. P/B ratio (~6.8) is elevated but justified by strong return metrics. Dividend yield of 0.06% is negligible, with reinvestment focus on growth.
🏢 Business Model & Advantage: WAAREEENER operates in renewable energy, benefiting from sector tailwinds, government support, and rising demand for solar solutions. Competitive advantage lies in scale, technology leadership, and strong institutional interest (FII +0.15%, DII +1.46%).
📈 Entry Zone: Attractive accumulation near ₹2,950–₹3,050 (close to DMA 200 support). Current price (₹3,119) is slightly above fair entry, with resistance at ₹3,865.
⏳ Long-Term Holding: Strong candidate for 3–5 year horizon given superior fundamentals, sector growth, and undervaluation. Partial profit booking advised near ₹3,800–₹3,865 resistance zones.
Positive
- High ROCE (42.8%) and ROE (35.4%)
- Low debt-to-equity (0.15)
- EPS of ₹131 supports profitability
- Institutional support (FII +0.15%, DII +1.46%)
Limitation
- Quarterly PAT decline (₹1,226 Cr → ₹934 Cr)
- Dividend yield of only 0.06%
- High P/B ratio (~6.8)
Company Negative News
- Short-term profit decline raises caution
Company Positive News
- Strong institutional inflows (DII +1.46%)
- Superior efficiency metrics compared to peers
Industry
- Renewable energy sector trading at PE ~29.8
- Government incentives and rising demand support long-term growth
Conclusion
WAAREEENER is fundamentally strong with superior efficiency, low leverage, and attractive valuations relative to peers. Entry is ideal near ₹2,950–₹3,050, with profit booking advised near ₹3,800–₹3,865. Long-term investors can hold for 3–5 years, benefiting from sector growth and strong fundamentals.