Waaree Energies Gets Motilal Oswal's 'Buy' As It Initiates Coverage, Sees 19% Upside — Details Inside

Waaree Energies boasts unmatched scale and is a bellwether in the Indian cell/module manufacturing space. With operational cell/module capacity of 5.4GW/16.1GW in India, Waree Energies towers domestic competitors and enjoys a formidable India capacity market share of 21.6%/13.3%..NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.We initiate coverage on the solar cell and module manufacturing sector, with a Buy rating on Waaree Energies Ltd. and a target price of Rs 4,000..Valuation: The valuation of Waaree Energies has been derived through a sum-of-the-parts (SoTP) methodology, resulting in a target price of Rs 4,000/share. The domestic module business is valued at 15x FY28E Ebitda, representing a premium to global peers. The US module business is valued at 12x FY28E Ebitda, which is in line with global peers. The new business segments, of which over 74% of the contribution is attributed to the EPC and O&M businesses, is valued at 11x FY28E Ebitda, consistent with domestic peer valuations. The sum of these segment valuations (adjusting for net debt) results in a target price of Rs 4,000/share, capturing a comprehensive value of Waaree Energies’ diversified operations..Upside risks: slower-than-expected ramp-up of industry cell capacity in FY27- 28,the government formalizing the localization directive for wafers and ingots (similar to ALCM)..Downside risks:Intensifying competition from large domestic players may pressure pricing and margins; Heavy US market reliance heightens sensitivity to policy, tariff, and geopolitical shifts; If backward integration initiatives (cells, ingot-wafer, and other upstream operations) fail to scale effectively, profitability and competitiveness may be undermined; the company’s aggressive foray into capital-intensive cell and ingot/wafer manufacturing increases exposure to execution and stabilization risks, potentially impacting timelines, costs, and near- to medium-term financial performance..Click on the attachment to read the full report:.Eternal Vs Swiggy — Deja Vu In Quick Commerce Race, But This Time Could Be Different, Says Motilal Oswal.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Waaree Energies Gets Motilal Oswal's 'Buy' As It Initiates Coverage, Sees 19% Upside — Details Inside

Motilal Oswal recommends 'Buy' rating to Waaree Energies as it initiaties coverage on the stock on multiple growth factors

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