During the trading session of Friday, the shares of a company engaged in the business of generation of power through renewable energy sources hit a 5 percent upper circuit at Rs. 1,925.2 on BSE.
With a market capitalisation of Rs. 20,055 crores, the shares of Waaree Renewable Technologies Limited opened at Rs. 1,756, as against its previous closing price of Rs. 1,833.55.
Stock Performance
The stock has delivered multibagger returns of around 64,941 percent over a five-year period, spanning from Rs. 2.96 in September 2019 to the current stock price level of Rs. 1,925.2.
This indicates that if an investor had invested Rs. 10,000 in the stock five years ago, it would have gained to nearly Rs. 65 lakhs.
In the previous six months, the stock has delivered positive returns of nearly 43.8 percent, while around 667 percent of multibagger returns in the last one year. So far in 2024, the shares of Waaree Renewable Technologies have given about 338.7 percent of multibagger returns.
Segment Performance:
As of Q1 FY25, the company’s unexecuted order book totalled 2,191 MWp, expected to be executed within 9 to 12 months. It has executed orders exceeding 217 MWp, while the bidding pipeline remains robust at 15.5 GW. The company generated Rs. 2.5 crores in revenue from the O&M segment.
The EPC segment demonstrated robust performance, achieving customer billing of Rs. 301.3 crores for a volume of 302.95 MWp, compared to Rs. 131.17 crores for a volume of 109.45 MWp.
Financials:
The company experienced significant growth in its revenue from operations, showing a year-on-year rise of around 83.3 percent from Rs. 129 crores in Q1 FY24 to Rs. 236.4 crores in Q1 FY25.
Similarly, its net profit increased during the same period from Rs. 9 crores to Rs. 28.2 crores, indicating a rise of nearly 213.3 percent YoY.
On a year-on-year basis, EBITDA increased from Rs. 13.4 crores in Q1 FY24 to Rs. 41.08 crores in Q1 FY25, registering a growth of 206.6 percent.
In terms of return ratios, Waaree Renewables Technologies reported a return on equity (RoE) of 93.3 percent, and a return on capital employed (RoCE) of 103 percent.
In addition, the company has maintained better margins over the years. In FY24, the company reported a net profit margin of 16.89 percent and an operating margin of 23.41 percent.
Future Growth:
Waaree Renewable Technologies aims to achieve higher growth in the EPC segment by exploring opportunities in both international and domestic markets to secure additional EPC contracts and participate in government and private bidding processes.
With a current total O&M capacity of over 500 MWp, the company anticipates growth in the O&M market as more solar capacities are introduced, assessing third-party O&M opportunities in both international and domestic markets through organic and inorganic methods.
The company targets to enhance value for customers by providing differentiated O&M services, including drone thermography, robust analytics and predictions, underground cable fault detection etc.
Shareholding Pattern:
As per the latest shareholding pattern, the Promoters hold a 74.46 percent stake in the company, Foreign Institutional Investors (FII) hold a 0.83 percent stake, while Retail Investors hold a 24.69 percent stake in Waaree Renewables Technologies.
About the Company:
Waaree Renewable Technologies Limited, a subsidiary company of Waaree Group and spearheading the Solar EPC business, is engaged in the business of generation of power through renewable energy sources and also providing Engineering, procurement, and construction (EPC) services.
Written by Shivani Singh
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