Recently-listed Waaree Energies Ltd shares on Tuesday settled 6.93 per cent lower at Rs 2,899.45. At this closing value, the stock has slipped 22.49 per cent from its all-time high value of Rs 3,740.75, a level seen earlier this month on November 6. Despite the mentioned drop, it has rallied 92.91 per cent compared to its issue price of Rs 1,503.
On the earnings front, the solar PV module maker posted a 15 per cent year-on-year (YoY) rise in its second quarter (Q2 FY25) net profit at Rs 362 crore as against Rs 315 crore in the year-ago period. During the quarter under review, revenue from operations was marginally up 1 per cent (YoY) at Rs 3,574 crore versus Rs 3,537.2 crore in the corresponding period last year.
Nuvama Institutional Equities said the company recorded 'muted' Q2 performance due to "higher expenses and lower realisations." Exports share dropped to 27 per cent (60 per cent in Q2 FY24), it added.
Although, the domestic brokerage noted that expansion plans were on track. "Waaree has indicated strong growth avenues with its domestic and overseas expansion plans. Moreover, it undertakes solar EPC projects via its listed subsidiary Waaree Renewable Technology," Nuvama said.
"Currently, the company operates 13.3GW solar module capacity in India. H1 solar module production stood at 3.3GW versus 4.8GW in FY24. In India, the company aims to increase its module capacity to 21GW and cell capacity to 11GW by end-FY27," it also said.
"With the addition of cell manufacturing capacities and integrating with solar module manufacturing, management believes the overall module cost shall reduce and expects blended margins to improve by 2–3 per cent. Addition of cell manufacturing capacity and DCR potential of in-house cells shall add to margin improvement," Nuvama further stated.
In terms of future growth, Nuvama said the company has indicated that the retail business is one of the focus areas for it given the push by government policies such as Surya Grah Muft Bijli Yojana.
It is required to mention that the brokerage assigned a 'Not Rated' tag to the company's shares as of now.
Incorporated in December 1990, Waaree Energies is an Indian manufacturer of solar PV modules with an aggregate installed capacity of 13.3 GW.
Meanwhile, domestic benchmarks are closed on Wednesday due to Maharashtra Assembly elections.