Stock of this company engaged in Solar EPC biz has zoomed 117% in 7 weeks

Shares of Waaree Renewable Technologies on Wednesday were locked in the 5 per cent upper circuit for the third straight session on BSE at Rs 3,159.20. 

In the past three days, the stock has rallied 15 per cent after PM Narendra Modi on Monday announced the launch of Pradhanmantri Suryodaya Yojana (PSY) that aims to install rooftop solar power systems at 10 million households across the country.

The average trading volumes on the counter more than doubled today. Around 108,000 shares changed hands and there were pending buy orders for 57,737 shares on the BSE, as per exchange data.

An average sub 50,000 shares were traded in past two weeks. Currently, WRTL is trading under the T group on the BSE. In the T2T segment, each trade has to result in delivery and no intra-day netting of positions is allowed.

In the past eight trading days, share price of WRTL has surged 34 per cent, while in past seven weeks it has zoomed 117 per cent.

In the past one year, the stock price of WRTL has skyrocketed 560 per cent as compared to 16 per cent rise in the BSE Sensex.

WRTL is subsidiary company of Waaree Group and spearheading the Solar EPC business. Waaree Group has successfully installed 10000+ solar projects with cumulative installation done for over 1.2+ GW.

Waaree group is a leading renewable energy company that caters Individual, Industrial and Commercial customers by encouraging them to adapt energy solutions that helps in reducing the release of carbon.

The company provides clean energy to its clients by setting up both on-site solar projects (rooftop and ground-mounted) and off-site solar farms (open access solar plants).

In October-December quarter (Q3FY24), WRTL registered a strong performance, with year-on-year (YoY) growth of 339 per cent in revenues at Rs 324 crore and a robust growth of over 158 per cent in profitability at Rs 64.46 crore.

EBITDA margins stood at 27.09 per cent driven by operating leverage and a sharp focus on cost control.

The company’s unexecuted order book stands at 749+MW as of December 31, 2023; while bidding pipeline remains robust, the management said.

The company has signed a collaboration agreement with “5B Maverick Services PTY Ltd.” The company has also received 70MW Capacity ground mounted solar power project.

India's Renewable Energy sector continues to play a pivotal role in the nation's pursuit of sustainable growth and energy security.

As of August 2023, solar energy accounts for an impressive 17 per cent of the installed power generation capacity, reflecting a significant increase from 2.8 per cent in FY19 to 6.3 per cent in FY23 in power consumption.

Aligned with the government's commitment to achieving a net-zero emissions target by 2070, India's solar energy sector is at the forefront of renewable energy advancements.

Key policies such as the Solar Park Scheme, PM KUSUM, Grid Connected Solar Rooftop Schemes, and other initiatives underscore the company’s dedication to expanding renewable energy sources, the management said,

Meanwhile, the board has announced the corporate action of stock split the face value of equity shares in the ratio 1:5 i.e. split of existing 1 equity share of face value of Rs 10 each into 5 equity shares of face value of Rs 2, subject to shareholders approval.

The rationale behind stock split is to encourage wider participation of small investors; and to enhance liquidity of the equity shares of the company in the stock market.