With a market capitalization of Rs 3,000 crores, the shares of Waaree Renewable Technologies Limited closed at a price of Rs 1,450.35 on Friday. The stock reached its all-time high level on the 28th of July 2023 at a price of Rs 1509.45.
The scrip, as per the BSE data, has given multibagger returns of approximately 17,500 percent over a period of 3 years ranging from Rs 8.20 in July 2020 to the current stock price levels. It means that if someone would have invested Rs 1 Lakh into the stock, it would have converted to around Rs 1.76 crores within the above-mentioned period.
Waaree Renewable Technologies Limited is a company engaged in the business of power generation and providing consultancy services. The company offers sustainable partnerships by way of provision of Renewable Energy (RE) solutions to institutional, industrial, and commercial sectors. The company generates a maximum of its revenue from the “EPC” contracts.
The latest financial reports exhibit an increase in the basic financial indicators such as the operating revenues as well as net profits with the former increasing from Rs 161 crores during FY21-22 to Rs 350 crores in FY22-23 and the latter jumped seven-fold from Rs 8 crores to Rs 55 crores keeping the timeframe the same.
Additionally, there have been drastic improvements in the company’s profitability ratios with the return on equity (RoE) rising from 28.77 percent during FY21-22 to 65.09 percent in FY22-23 and the return on capital employed (RoCE), during the same period, moving from 36.45 percent to 62.74 percent.
In addition to the above, the company reduced its debt-to-equity ratio from 1.40 times during FY21-22 to 0.46 times during FY22-23. The company’s net profit margins also moved from 5.50 percent during FY21-22 to 15.76 percent in FY22-23.
The latest shareholding data available for the March 2023 quarter represents that the promoters hold a 74.51 percent stake, and the rest stakeholding is represented by the retail investors.
Written by Amit Madnani
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