- Jefferies maintains neutral rating on Waaree Energies with a lowered target price of Rs 2,185
- Company posted volume-led earnings beat, raising FY26 and FY27 EBITDA estimates by 16% and 8%
- Exports declined sharply post US tariffs, increasing regulatory and trade risks in the US market
Jefferies has maintained a neutral rating on Waaree Energies, while cutting its target price, even as the company posted a volume-led earnings beat in the latest quarter.
The brokerage reiterated its 'underperform' call and cut its target price to Rs 2,185 from Rs 2,295 apiece, implying a 17% downside.
The brokerage said the stronger-than-expected performance was driven primarily by higher volumes, prompting it to raise its FY26 and FY27 Ebitda estimates by 16% and 8%, respectively. Following the results, management indicated that it expects to exceed its guidance of more than 100% Ebitda growth in FY26, reflecting confidence in capacity utilisation and near-term execution.
However, Jefferies struck a note of caution on the export outlook. The brokerage highlighted that exports have declined sharply since the imposition of US tariffs, which has altered the company's geographic revenue mix. It added that the order book is now further skewed towards the US, increasing exposure to regulatory and trade-related risks.
Jefferies also flagged potential overhangs from the impending anti-dumping and countervailing duty implications, which could impact margins and order flows, given the company's growing dependence on the US market.
On the domestic front, the brokerage said Waaree Energies is well placed to benefit from government subsidy schemes such as PM-KUSUM, supported by its large retail footprint and domestic content requirement (DCR) manufacturing capabilities. These factors are expected to provide some offset to external headwinds, particularly as India ramps up renewable energy deployment.
Despite near-term earnings momentum and supportive domestic policy tailwinds, Jefferies remains cautious on the stock's risk-reward, retaining its 'underperform' stance due to concerns around export volatility, order book concentration and regulatory uncertainties.
Waaree Energies Share Price Today
The scrip fell as much as 2.52% to Rs 2,586 apiece, paring losses to trade 0.80% higher at Rs 2,674 apiece, as of 9:27 a.m. This compares to a 0.14% advance in the NSE Nifty 50 Index.
It has risen 13.20% in the last 12 months. The relative strength index was at 47.94.
Out of 14 analysts tracking the company, 10 maintain a 'buy' rating, and four suggest 'sell,' according to Bloomberg data. The average 12-month consensus price target implies an upside of 33.4%.
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