WAAREEENER - Investment Analysis: Buy Signal or Bull Trap?
Back to ListInvestment Rating: 4.4
| Stock Code | WAAREEENER | Market Cap | 89,340 Cr. | Current Price | 3,106 ₹ | High / Low | 3,865 ₹ |
| Stock P/E | 24.6 | Book Value | 391 ₹ | Dividend Yield | 0.06 % | ROCE | 34.0 % |
| ROE | 26.3 % | Face Value | 10.0 ₹ | DMA 50 | 2,872 ₹ | DMA 200 | 2,965 ₹ |
| Chg in FII Hold | 0.56 % | Chg in DII Hold | 0.04 % | PAT Qtr | 1,226 Cr. | PAT Prev Qtr | 1,160 Cr. |
| RSI | 65.5 | MACD | 22.8 | Volume | 25,31,275 | Avg Vol 1Wk | 27,37,940 |
| Low price | 1,809 ₹ | High price | 3,865 ₹ | PEG Ratio | 0.13 | Debt to equity | 0.19 |
| 52w Index | 63.1 % | Qtr Profit Var | 160 % | EPS | 119 ₹ | Industry PE | 26.2 |
📊 Analysis: Waaree Energies (WAAREEENER) demonstrates strong fundamentals with ROE at 26.3% and ROCE at 34.0%, reflecting excellent capital efficiency. EPS of ₹119 is robust, and quarterly PAT growth (+160%) highlights strong earnings momentum. The stock trades at a P/E of 24.6, slightly below the industry average of 26.2, suggesting fair valuation. PEG ratio of 0.13 indicates attractive growth-adjusted valuation. Debt-to-equity is low at 0.19, ensuring financial stability. Dividend yield is minimal (0.06%), so the primary appeal lies in growth rather than income. Technicals show RSI at 65.5 (slightly overbought) and MACD positive (22.8), indicating bullish momentum.
💰 Entry Price Zone: Ideal accumulation zone is between ₹2,850 – ₹3,000, closer to DMA50 (₹2,872) and DMA200 (₹2,965), offering margin of safety before fresh rallies.
⏳ Exit / Holding Strategy: If already holding, maintain with a long-term horizon (5+ years) given strong ROE/ROCE and sector tailwinds. Consider partial profit booking near ₹3,800 – ₹3,865 (recent high zone). Long-term investors can hold for compounding as fundamentals and sector growth remain favorable.
Positive
- 🔋 Strong ROE (26.3%) and ROCE (34.0%).
- 📈 Robust EPS (₹119) and PAT growth (+160%).
- 🏦 Low debt-to-equity (0.19), ensuring financial stability.
- ✅ FII stake increased (+0.56%), showing foreign investor confidence.
Limitation
- ⚠️ Dividend yield (0.06%) provides negligible income support.
- 📉 RSI at 65.5 indicates slightly overbought conditions.
- 🔻 High volatility with wide 52-week range (₹1,809 – ₹3,865).
Company Negative News
- 📉 Dividend payout remains minimal despite strong earnings.
- 🚫 DII holding only marginally increased (+0.04%), showing limited domestic institutional participation.
Company Positive News
- ✅ Quarterly PAT improved from ₹1,160 Cr to ₹1,226 Cr.
- 💡 Strong growth momentum supported by renewable energy demand.
Industry
- 🏭 Renewable energy industry PE ~26.2, aligned with WAAREEENER’s valuation.
- 🌍 Sector growth driven by government incentives, clean energy adoption, and global sustainability trends.
Conclusion
WAAREEENER is fundamentally strong with excellent ROE/ROCE, robust earnings growth, and fair valuation relative to peers. Ideal entry is near ₹2,850–₹3,000 for margin of safety. Existing holders should maintain positions for long-term compounding but consider partial exit near ₹3,800–₹3,865. The stock is a strong candidate for long-term investment in the renewable energy sector.
Selva, would you like me to extend this into a peer benchmarking overlay (Waaree Energies vs Adani Green, Tata Power Renewables, etc.) so you can evaluate sector rotation and compounding potential more clearly?