Synopsis: Waaree Energies has been assigned a strong 77% upside potential by Motilal Oswal, citing numerous positives, including the company’s industry presence and a strong order book. Along with these, it mentioned some downside risks as well, such as huge US exposure, heavy competition, etc.
The shares of this leading solar PV module manufacturer are in focus after Motilal Oswal cited a strong upside in the stock price, citing multiple positives. In this article, we will dive more into the details of it.
With a market capitalization of Rs 95,704 crore, the shares of Waaree Energies Ltd are currently trading at Rs 3,327 per share, up by 1.5 percent from its previous day’s closing price of Rs 3,276.20 per share. In the last one year, the stock has delivered a return of 18 percent, as compared to NIFTY 50’s return of 6 percent.
Analyst Comments
Leading domestic brokerage Motilal Oswal, as part of its Bull case, has set a target price of Rs 5,895 per share, indicating an upside potential of 77 percent from its current market price.
The brokerage cited that Waaree Energies is one of India’s largest makers of solar power equipment. It has a significant capacity of 5.4 GW for cells and 16.1 GW for modules, along with a 2.6 GW plant in the US. This gives Waaree a strong market share of 21.6 percent in India’s solar module sector, clearly leading ahead of its competitors.
The company has quickly responded to policy and market changes, especially by establishing local cell manufacturing early on. This move supports the government’s drive for domestic production under the Approved List of Models and Manufacturers (ALMM). Waaree also plans to increase its US capacity from 2.8 GW to 4.2 GW by the end of FY26, showing thoughtful planning as global trade policies and tariffs change.
Waaree’s integrated business model, which covers the whole solar value chain from modules to different raw materials, allows it to manage costs and supply more effectively. Furthermore, the management expects an EBITDA of Rs 5,500–6,000 crore for FY26.
Motilal Oswal predicts that Waaree’s EBITDA and PAT will grow at a robust CAGR of 43 percent and 40 percent, respectively, from FY25 to FY28. The brokerage also anticipates that new businesses will contribute about 15 percent of EBITDA by FY28, reflecting the company’s efforts to diversify.
However, risks still exist, including rising competition, reliance on the US market, and challenges in executing capital-heavy expansions like wafer and cell manufacturing. On the other hand, in a positive scenario, if pricing and utilization improve by just 5 percent, Waaree’s earnings could significantly exceed current estimates, positioning it as a strong long-term growth story in the renewable energy sector.
Q2 Highlights
Waaree Energies Ltd has reported an operating revenue of Rs 6,066 crore in Q2 FY26, representing a 70 percent growth compared to Rs 3,574 crore in Q2 FY25. Regarding its profitability, it reported a net profit of Rs 878 crore in Q2 FY26, a staggering growth of 134 percent as compared to Rs 376 crore in Q2 FY25.
The company has a robust order book of Rs 47,000 crore, consisting of 24 GW of projects. Of this total order book, a staggering 59.5 percent is derived from overseas clients, while the remaining 40.5 percent is derived from Indian clients, making it extremely vulnerable to any shift in global policies like tariffs.
The stock delivered an exceptional ROE and ROCE of 27.42 percent and 34.94 percent respectively, and is currently trading at a P/E of 35.41x, which is in line with its sector average of 35.40x.
Waaree Energies is the largest solar panel manufacturer in India and has been concentrating on making quality and low-cost solar panels as a means of encouraging the use of clean energy and lowering carbon emissions since 2007. It runs five manufacturing units in India and is also present in the global markets. The company has a vast presence in India, serving over 700 districts, and also operates in 25 countries, including the US, which is a major client of the company.
Written by Satyajeet Mukherjee
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
