WAAREEENER - Investment Analysis

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

Investment Rating: 4.6

☀️ Fundamental Analysis of Waaree Energies Ltd (WAAREEENER)

✅ Strengths

Exceptional Profitability

ROCE: 35.1%, ROE: 27.6% — elite capital efficiency

EPS: ₹78.4, with Qtr Profit Growth: +89.1% — strong earnings momentum

Attractive Growth Valuation

P/E: 41.0 vs Industry PE: 42.0 — slightly undervalued

PEG Ratio: 0.21 — extremely attractive for a high-growth company

Strong Technical Momentum

MACD: +61.7, RSI: 55.3 — bullish trend with room to run

Price above both DMA 50: ₹2,982 and DMA 200: ₹2,682 — strong uptrend

Low Leverage

Debt-to-Equity: 0.13 — conservative capital structure

Institutional Confidence

FII Hold ↑ 1.98%, DII Hold ↑ 0.40% — growing institutional interest

⚠️ Concerns

Premium Valuation vs Book

Book Value: ₹330 vs Price: ₹3,173 — ~9.6x book, high premium

No Dividend Yield — not ideal for income-focused investors

Volume Spike — current volume ~3x above average, may signal short-term froth

📉 Ideal Entry Price Zone

Entry Zone: ₹2,850–₹3,000

Near DMA 50 and below current price

Offers better valuation comfort and trend support

🧭 Long-Term Investment Outlook

Waaree Energies is a strong candidate for long-term investment, especially for growth-oriented investors seeking exposure to the renewable energy boom. Its profitability, PEG ratio, and institutional interest make it compelling.

Holding Period: 5+ years

Ideal for compounding through solar infrastructure expansion

Reassess if ROE drops below 20% or PEG rises above 1.0

🚪 Exit Strategy (If Already Holding)

Partial Exit Zone: ₹3,600–₹3,700

Near 52-week high and psychological resistance

Full Exit

If ROE drops below 18% for 2+ quarters

If PEG rises above 1.5 without earnings acceleration

If price breaks below ₹2,600 and fails to recover

Reinvest: On dips near ₹2,850 if fundamentals remain strong

Would you like a comparison with other renewable energy leaders like Adani Green, Tata Power, or KPI Green to assess sector positioning and diversification potential?

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