This recently listed stock enters top-100 mcap club; jumps 127% in 6 days

At 02:16 pm, with a market cap of Rs 95,886 crore, Waaree was trading 12% higher at Rs 3,337.70, and stood at number 100th position beating Indian Hotels.

Waaree Energies (Waaree) share price continued its northward movement, hitting a new high at Rs 3,408.85, as they surged 14 per cent on the BSE in Tuesday’s intra-day trade. 

 

The stock was trading higher for the sixth straight day, surging 46 per cent since its listing on October 28. The market price of one of the leading India's renewable energy companies, specialising in solar energy solutions, has zoomed 127 per cent against its issue price of Rs 1,503 per share. 

 

A sharp rally in the stock price of the company has seen Waaree enter the top-100 most valuable company in terms of market capitalisation (market cap). Waaree’s market cap hit Rs 97,930 crore in intra-day trades, and was seen inching towards the Rs 1 trillion-mark. At 02:16 pm; with a market cap of Rs 95,886 crore, Waaree was trading 12 per cent higher at Rs 3,337.70. Waaree stood at number 100th position, surpassing Tata Group hospitality company Indian Hotels. 

 

 

Waaree, on October 28, made a strong market debut with its shares listed at Rs 2,550, a 70 per cent premium over its issue price. The stock had settled 55 per cent higher at Rs 2,336.80 per share on the BSE exchange on debut.

 

As of October 24, 2024, of the 35.70 per cent of public shareholding in Waaree, a total of 23.56 holdings were with the resident individual investors, the shareholding pattern data shows. Bodies corporate held 3.28 per cent stake, followed by domestic institutional investors (3.02 per cent), foreign portfolio investors (2.23 per cent) and foreign companies (2.17 per cent), data shows.

 

Waaree is India's largest manufacturer and exporter of solar modules having a capacity of 13.3 gigawatt (Gw), which grew 6-times in just three years from 2 Gw in FY21. It has a market share of 21 per cent in India and a healthy 44 per cent share in exports of solar modules from India. The company raised Rs 4,321 crore via initial public offer (IPO). The IPO proceeds will be utilised to partly finance its 6 Gw ingot, wafer, solar cell and solar PV module manufacturing facility in Odisha.

 

Waaree is setting up a 11.4 Gw integrated manufacturing facility, of which 5.4 Gw solar cell will be operational by Q3 FY25 at Chikhli in Gujarat and a 6 Gw fully integrated manufacturing facility in Odisha to produce ingots, wafers, and solar cells by FY27. This state-of-the-art facility will produce solar cells and modules utilising advanced passenger vehicle (PV) technologies designed for high-efficiency, large-sized PV silicon wafers. The company was recently awarded orders worth Rs 1,900 crore under the Production Linked Incentive (PLI) scheme. 

For FY24, Waaree had the second best operating income among all the domestic solar PV module manufacturers in India and is well positioned to capture industry tailwinds and growth prospects for solar energy in India and globally.

 

Revenue has zoomed 4x over the period FY22-24 to Rs 11,398 crore in FY24 while EBITDA jumped sharply by 14x over the same period led by significant improvement in EBITDA margins (13.8 per cent in FY24 vs 3.9 per cent in FY22).

 

Subsequently, profit after tax increased by 16x over the same period FY22-24 to Rs 1,237 crore in FY24. Global share of renewable electricity is expected to increase to 46 per cent by CY30E from 30 per cent in CY23. In all renewable electricity

sources, solar is expected to contribute substantially to the growth over CY24-30, ICICI Securities said in a note.

   

"With solar energy emerging as a key global theme in the transition towards renewable energy, the company is poised to capitalise on the growing opportunity led by its strong track record, leading market share, strong financials, and continued focus on innovation and sustainability," analysts at InCred Equities had said their IPO note.

 

Government initiatives, such as PM-KUSUM, Rooftop Phase-II, and Atmanirbhar Bharat, highlight India's commitment to promoting green energy. Supportive policies, including subsidies, PLI scheme, and customs duty exemption on solar components are actively attracting investment and propelling growth in the renewable energy sector, the brokerage firm said.

 

With Waaree being a market leader in the solar module segment along with positive factors like growing global demand for solar energy, strong government focus on renewable sector and impetus on China Plus One Policy, Motilal Oswal Financial Services believes the company is favourably positioned. 

 

Exports contributed 58 per cent of Waaree's revenue in FY24, out of which 57 per cent was to the US. Waaree benefits from the tariffs that were imposed by the US on the import of Chinese solar modules in FY22 for a period of 4 years. With its upcoming facility in the US in FY25, it will have improved access to existing and new customers there and will also be shielded from the risk of any future tariffs that may be imposed by the US, the brokerage firm said in its IPO note.