WAAREEENER - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 4.6

📊 Core Financials Overview

Profitability

ROCE: 34.0% and ROE: 26.3% — exceptional, indicating highly efficient capital deployment and strong shareholder returns.

EPS: ₹73.2, with PAT rising from ₹581 Cr. to ₹660 Cr. — a robust 77.5% quarterly growth, showcasing strong earnings momentum.

Debt-to-equity: 0.11 — very low leverage, supporting long-term financial stability.

Dividend Yield: 0.00% — no payouts, suggesting reinvestment focus for growth.

Institutional Sentiment

FII holdings increased (+1.98%), DII holdings also rose (+0.40%) — strong institutional confidence.

💰 Valuation Metrics

Metric Value Insight

P/E Ratio 48.6 Slightly above industry average (41.4) — reflects premium pricing.

P/B Ratio ~10.7 Elevated, typical for high-growth clean energy firms.

PEG Ratio 0.25 Very attractive — valuation well-supported by earnings growth.

Intrinsic Value ~₹3,300–₹3,450 (est.) Current price of ₹3,500 is slightly above fair value.

🧠 Business Model & Competitive Edge

Core Operations: Waaree Energies Ltd. is a leading solar module manufacturer and EPC player, with operations spanning solar panels, inverters, batteries, and turnkey solar solutions.

Strengths

Largest solar module capacity in India with global export footprint.

Strong operating margins and cost control — gross margin ~29.4%, net margin ~14.2%

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Backward integration and scale efficiencies.

High Altman Z-score and Piotroski Score — indicating strong financial health

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Challenges

No dividend payout may deter income-focused investors.

RSI at 57.7 — neutral zone, MACD at 120 — strong bullish momentum, but watch for overextension.

📈 Entry Zone & Technicals

DMA 50: ₹3,225, DMA 200: ₹2,851 — price is above both, indicating bullish trend.

RSI: 57.7 — neutral, not overbought.

MACD: 120 — strong bullish crossover.

📌 Entry Zone: ₹3,300–₹3,450 — attractive for accumulation on minor dips.

🕰️ Long-Term Holding Guidance

2025 Target: ₹3,800–₹4,200

2026–2028 Target: ₹4,800–₹5,600

2030 Target: ₹7,000+

Holding Strategy: Waaree Energies is a high-quality compounder in the renewable energy space, with strong fundamentals, low debt, and aggressive growth. Ideal for long-term investors seeking exposure to India’s clean energy transition. Accumulate during technical pullbacks and hold through cycles.

You can explore Waaree’s financial performance and margin analysis

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or review its intrinsic valuation breakdown

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for deeper insights.

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stockinvest.us

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www.alphaspread.com

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