WAAREEENER - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.4
| Stock Code | WAAREEENER | Market Cap | 86,225 Cr. | Current Price | 2,998 ₹ | High / Low | 3,865 ₹ |
| Stock P/E | 21.6 | Book Value | 456 ₹ | Dividend Yield | 0.07 % | ROCE | 42.8 % |
| ROE | 35.4 % | Face Value | 10.0 ₹ | DMA 50 | 3,121 ₹ | DMA 200 | 3,031 ₹ |
| Chg in FII Hold | 0.15 % | Chg in DII Hold | 1.46 % | PAT Qtr | 934 Cr. | PAT Prev Qtr | 1,226 Cr. |
| RSI | 38.5 | MACD | -56.7 | Volume | 13,14,224 | Avg Vol 1Wk | 9,94,306 |
| Low price | 2,402 ₹ | High price | 3,865 ₹ | PEG Ratio | 0.21 | Debt to equity | 0.15 |
| 52w Index | 40.7 % | Qtr Profit Var | 60.8 % | EPS | 131 ₹ | Industry PE | 28.3 |
📊 Core Financials:
WAAREEENER has delivered strong financials with quarterly PAT at 934 Cr., though down from 1,226 Cr. (↓23.8%). ROCE at 42.8% and ROE at 35.4% are excellent, reflecting superior efficiency and profitability. Debt-to-equity is low at 0.15, indicating a healthy balance sheet. EPS stands at 131 ₹, showcasing strong earnings power and consistent cash flows.
💹 Valuation Indicators:
The stock trades at a P/E of 21.6, below the industry average of 28.3, suggesting undervaluation. P/B ratio is ~6.58 (Price 2,998 ₹ / Book Value 456 ₹), which is elevated but justified by strong earnings. PEG ratio of 0.21 indicates growth is attractively priced. Intrinsic value appears higher than current levels, offering margin of safety.
🏢 Business Model & Competitive Advantage:
WAAREEENER operates in renewable energy with strong brand presence and leadership in solar solutions. Its competitive advantage lies in scale, efficiency, and sector tailwinds. High ROCE and ROE highlight superior capital utilization, while growing demand for clean energy strengthens its long-term outlook.
🎯 Entry Zone & Long-Term Guidance:
Current price (2,998 ₹) is below both 50 DMA (3,121 ₹) and 200 DMA (3,031 ₹), showing near-term weakness. RSI at 38.5 indicates oversold conditions, while MACD (-56.7) confirms bearish momentum. A good entry zone would be 2,850–2,950 ₹ if undervaluation persists. Long-term holding is favorable given strong fundamentals and sector growth potential.
Positive
- 📈 Strong ROCE (42.8%) and ROE (35.4%).
- 💰 Low debt-to-equity (0.15).
- 📊 Attractive P/E (21.6) vs industry average (28.3).
- 🌍 Institutional confidence with FII (+0.15%) and DII (+1.46%) increases.
Limitation
- ⚠️ Quarterly PAT declined (934 Cr. vs 1,226 Cr.).
- 📉 Elevated P/B ratio (~6.58).
- 📉 Dividend yield modest at 0.07%.
- 📉 Technical weakness with price below DMA levels.
Company Negative News
📰 No major negative news reported recently, but profit decline raises concerns about short-term earnings stability.
Company Positive News
📰 Strong fundamentals with high ROCE/ROE. Institutional holdings increased, reflecting investor confidence. Sector tailwinds continue to support long-term growth.
Industry
🏭 Industry P/E stands at 28.3, higher than WAAREEENER’s valuation. The renewable energy sector is experiencing strong demand growth, supported by global clean energy initiatives and government incentives.
Conclusion
✅ WAAREEENER is financially strong with excellent profitability, low debt, and attractive valuations compared to industry peers. Despite short-term profit decline and bearish technical signals, long-term investors can accumulate near 2,850–2,950 ₹. Strong fundamentals and sector growth make it a favorable long-term holding.
Would you like me to extend this into a renewable energy sector outlook to explore how policy and demand trends could further support WAAREEENER’s growth trajectory?