WAAREEENER - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 4.6

Waaree Energies (WAAREEENER) is a high-performance play in the renewable energy sector, exhibiting exceptional profitability and strong operating metrics. Despite trading near its highs, its PEG ratio and consistent earnings growth hint at continued strength — though valuation caution remains key.

💰 Core Financial Highlights

Profitability & Returns

ROE: 27.6%, ROCE: 35.1% — elite levels of capital efficiency; strong indicator of quality operations

EPS: ₹78.4 — robust earnings power for the price point

Quarterly PAT Growth: ₹622 Cr → ₹745 Cr (+19.7%) — consistent upside with 89.1% YoY surge

Balance Sheet Health

Debt-to-Equity: 0.13 — very low leverage, highly resilient to interest rate shifts

Book Value: ₹330 vs Price ₹3,173 — high premium; fair if growth continues

Dividend Yield: 0% — reinvesting aggressively to fuel expansion

📊 Valuation Metrics

Metric Value Meaning

P/E Ratio 41.0 Slightly below industry average (42.0); fair for a high-growth firm

PEG Ratio 0.21 Extremely attractive — growth far outpaces valuation

P/B Ratio ~9.6 High; reflects premium for brand and expected future cash flows

RSI 55.3 Neutral; stock is consolidating after strong rally

MACD 61.7 Bullish; trend strength supported by high volume

🔋 Business Model & Competitive Moat

Core Focus: Solar PV modules, EPC solutions, and integrated renewable systems

Strengths

Positioned to benefit from India’s green energy transition

Scalable business and clean balance sheet with low financing burden

Rising institutional interest (FII +1.98%, DII +0.40%) — indicates continued accumulation

Risks

Zero dividends limit appeal for income-oriented investors

High price vs book value — leaves little room for valuation error in case of earnings slowdown

Subject to policy changes and global solar input price volatility

🧭 Entry Zone & Long-Term View

Current Price: ₹3,173

Suggested Entry Zone: ₹2,880–₹3,050 — wait for pullback near 50-DMA or macro correction

12–15 Month Target: ₹3,800–₹4,200 — assuming stable margins and sector tailwinds

Ideal Investor Type

Suited for growth investors seeking clean tech exposure

Strong pick for ESG portfolios or those betting on India's renewable surge

Not ideal for value-focused or dividend-seeking profiles

If you'd like, I can build a forward intrinsic value model using projected EPS or simulate upside under different capacity expansion scenarios. Want to size up its competitors like Adani Green or ReNew Power for better perspective? ⚡📈 Let's keep energizing this analysis.

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