Recently-listed Waaree Energies Ltd shares jumped another 7.64 per cent in Wednesday's trade to scale a fresh record high of Rs 3,740.75. At today's high value, the stock has rallied 148.89 per cent from its issue price of Rs 1,503 in just eight trading sessions. It is required to be mentioned here that the solar PV module maker has never settled in the red post delivering a strong listing pop on October 28.
Bourses BSE and NSE have put the securities of Waaree Energies under the short-term ASM (Additional Surveillance Measure) framework. Exchanges put stocks in short-term or long-term ASM frameworks to caution investors about high volatility in share prices.
Today, the bourses sought clarification from the company on the stock price movement. "The Exchange has sought clarification from Waaree Energies Ltd on November 05, 2024, with reference to significant movement in price, in order to ensure that investors have the latest relevant information about the company and to inform the market so that the interest of the investors is safeguarded," it stated.
The company, in response, said, "There is no undisclosed/price sensitive information or any impending announcement/corporate action which needs to be informed to the Stock Exchanges at this point of time and which may have a bearing on the price / volume behaviour in the Company’s scrip. We hereby further submit that we are not aware of the reason of significant increase in our share price. The movement in the share price and increase in volumes are purely market driven and may be a combination of various factors including market conditions. The management of the Company is in no way connected with increase in the shares price."
The stock saw high trading volume on BSE today as around 8.12 lakh shares were last seen changing hands. The figure was higher than the two-week average volume of 7.88 lakh shares. Turnover on the counter came at Rs 292.91 crore, commanding a market capitalisation (m-cap) of Rs 1,03,134.67 crore.
Given the current emphasis on green energy, solar energy and alternative fuels, Waaree Energies' stock is going up, said Kranthi Bathini, Director of Equity Strategy at WealthMills Securities. "Market participants with a high-risk appetite should only consider entering at current levels. For serious investments, one should wait for the quarterly results," Bathini added.
Technically, an analyst expects the stock to see Rs 3,800-4,000 levels in the near term. That said, support may be seen in the Rs 2,800-2,850 range.
"Waaree Energies continued its remarkable performance in the stock market. The stock currently exhibits a 'higher top, higher bottom' formation, which signals a continued positive trajectory. The price range of Rs 3,800-4,000 is anticipated as a potential target, with minor support found at Rs 2,800-2,850 levels," said Ameya Ranadive CMT CFTe, Sr Technical Analyst at StoxBox.
In contrast, Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking, suggested investors to book profit at current levels. "The stock has rallied from its issue price. Market participants should consider booking profit at the current market price," Singh stated.
The initial public offering (IPO) of Waaree Energies was sold between October 21 and October 23. Incorporated in December 1990, Waaree Energies is an Indian manufacturer of solar PV modules with an aggregate installed capacity of 12 GW.