Waaree Energies, a leading player in India’s solar energy market, is witnessing a significant boost in its share trading as analysts are projecting robust growth for the company. On March 24, 2025, Nuvama Institutional Equities initiated coverage on Waaree with a 'buy' rating and set a target price of ₹2,805 per share, signifying an anticipated 25% increase from its current level of ₹2,295.
Nuvama's bullish outlook stems from Waaree's aggressive expansion capabilities and strong strategic plans for backward integration in the renewable energy sector. The brokerage expects the company’s revenue and EBITDA to grow at astonishing annual rates of 30% and 54%, respectively, for the fiscal year 2427. Analysts are particularly excited about Waaree's shift to high-margin ALMM-compliant and DCR modules, projects expected to significantly increase its profitability.
As of December 2024, Waaree Energies boasted an order book of 26.5 gigawatts, amounting to ₹500 billion, which puts the company in a favorable position to capture growth opportunities in India’s burgeoning green energy sector. Nuvama emphasized that backward integration in solar cell and wafer manufacturing is expected to boost Waaree's EBITDA margins from 14% in fiscal 2024 to an impressive 23% by the end of fiscal 2027.
Moreover, Waaree is making strides with its recently launched solar cell plant in Chikhali, Gujarat, which began commercial production in late 2024. The plant is anticipated to generate additional EBITDA of ₹20 billion annually, with estimates of ₹8 billion for fiscal year 2026 alone. The company is targeting to expand its solar module capacity to 21 GW, solar cell capacity to 11 GW, and wafer capacity to 6 GW by fiscal year 2027.
By midday on March 24, Waaree's shares were trading up 1.87% at ₹2,295 on the Bombay Stock Exchange. This reflects a promising trend as the stock has risen by 49% over the past six months, though it faced a slight decline of 22% in the preceding three months.
Additional insights from other analysts also highlighted Waaree Energies as a strong contender in the renewable energy sector. Prabhudas Lilladher's Technical Research Vice President Vaishali Parekh recommended a 'buy' for Waaree, projecting a potential rise of 6.25% from its previous closing price. Following Parekh’s assessment, Nuvama solidified their position on Waaree, stating, "We expect backward integration in solar cell and wafer manufacturing to improve Waaree's EBITDA margin from 14% in fiscal year 24 to 23% by fiscal year 27."
The activity in the broader renewable energy market reflected a positive sentiment on March 24, with most solar sector stocks trading in the green. Alongside Waaree, stocks like NTPC Green Energy, Adani Green, and Premier Energies saw increases, showcasing strong bullish trends amidst favorable market conditions. The National Stock Exchange reported that on March 24, Waaree Energies shares were trading at ₹2,402, a 2.09% increase from the previous trading period.
Additionally, the overall market saw the BSE Sensex jumping 655 points to reach 77,561, fueled by fresh foreign fund inflows and increased buying interest among blue-chip stocks. Market analysts are optimistic about the continuation of this bullish trend, providing further support for renewable energy stocks like Waaree Energies.
Moving forward, investors and stakeholders are closely watching Waaree Energies as it expands its operations and enhances its strategic positioning within India’s renewable energy landscape. As the global focus sharpens on sustainable energy solutions, companies like Waaree are poised to leverage opportunities that come with the transition to green technologies.
As trading continues, the enthusiasm surrounding Waaree Energies is expected to persist, underpinned by analysts' expectations, a solid order book, and a clearly defined strategy for growth in an increasingly competitive market. Investing in renewable energy has never seemed more promising, and Waaree Energies stands at the forefront of this critical green evolution.
