Waaree Energies shares extend gains, jump 4% today; what's next?

Shares of Waaree Energies Ltd continued their upward move for the second consecutive session on Thursday. The stock climbed 3.98 per cent to close at Rs 2,308.95. At this price, it has slipped 19.29 per cent on a year-to-date (YTD) basis.

The company informed bourses that it received an order to supply solar PV modules from Engie India's subsidiary Khaba Renewable Energy. The one-time order to supply 362.5 Mwp solar PV modules is scheduled to commence in FY26. Its current orderbook including its wholly-owned subsidiary WRTL stands at 26.5 GW, totalling Rs 50,000 crore.

Kotak Institutional Equities has assigned a 'Reduce' call for Waaree Energies. However, the broking house pegged the stock at a fair value of Rs 2,550, implying an upside potential of 10.43 per cent.

Nuvama said Waaree Energies' expansion plan is on track. The company intends to expand module and cell capacity to 21GW and 11GW by FY27. It has commissioned 1.6GW module capacity in the US. The management sees no major impact of IRA (inflation reduction act) halt and is looking to foray into manufacturing electrolysers for green hydrogen and battery manufacturing. It has been awarded PLI for a 300MW electrolyser manufacturing facility. "Acquisition of ENEL Green Power to be soon consummated. The stock is trading at 20x/12x FY26E/27E consensus EPS," the domestic brokerage stated.

Sunil Shah, fund manager at SRE PMS, said the recently-listed firm posted an excellent set of numbers for the December 2024 quarter. "The kind of growth that they are eyeing over the next couple of years, an order book of Rs 50,000 crore, clearly is the case in point where investors can put in money. The only caveat is that the lock-in period of investors in the pre-IPO comes to an end by almost April-end or so. At that point, we could see selling coming and that is where investors can look at investing in Waaree Energies. It is a combination which we need to play in this market," Shah stated.

The scrip saw high trading volume on BSE today as around 2.59 lakh shares changed hands. The figure was higher than the two-week average volume of 80,000 shares. Turnover on the counter came at Rs 59.58 crore, commanding a market capitalisation (m-cap) of Rs 66,332.25 crore.

Incorporated in December 1990, Waaree Energies is an Indian manufacturer of solar PV modules. As of December 2024, promoters held a 64.30 per cent stake in the solar module manufacturer.