🪞 At a Glance:
Waaree Renewable Technologies has gone from an obscure ₹1 crore revenue in FY2018 to a powerhouse ₹1,597 crore in FY2025. Profit has exploded 229x in just three years, ROCE is a jaw-dropping 85%, and it’s now among India’s most efficient capital goods players — all while staying (almost) debt-free. But… why is the stock down 50% from its peak?
☀️ About the Company
- Sector: Renewable Energy (Solar EPC + Power Generation)
- Incorporated: 1999
- Group: Subsidiary of Waaree Group
- Focus: EPC for solar power projects + renewable energy consulting
Think of them as the Apple Store for solar panels, except they also build the entire Apple Store… on your rooftop.
👨💼 Key Managerial Personnel
- Chairman: Hitesh Doshi
- CEO: Sunil Rathi (Waaree Energies lead, EPC operations)
- CFO: Ketan Mehta
Bonus: The promoter holding is rock solid at 74.39% (Mar 2025) — no signs of dilution even after the massive run.
💸 Financials — FY21 to FY25
| ₹ in Cr | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Revenue | 8 | 154 | 342 | 867 | 1,597 |
| EBITDA | 3 | 13 | 76 | 199 | 311 |
| PAT | 2 | 20 | 59 | 149 | 229 |
| EPS (₹) | 0.22 | 1.96 | 5.71 | 14.30 | 22.01 |
| OPM % | 36% | 9% | 22% | 23% | 19% |
🚀 Profit CAGR: 274% over 5 years
🔋 Revenue CAGR: 281%
📉 Stock is down 50% from peak — correction or consolidation?
📊 Balance Sheet Breakdown
| ₹ in Cr | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Reserves | 12 | 31 | 91 | 239 | 436 |
| Borrowings | 37 | 0 | 0 | 10 | 27 |
| Total Liabilities | 83 | 132 | 254 | 696 | 1,121 |
| Fixed Assets | 3 | 3 | 9 | 94 | 195 |
| CWIP | 0 | 0 | 80 | 3 | 56 |
| Other Assets | 48 | 128 | 165 | 590 | 818 |
🧠 FY25 Capex surge signals expansion mode — capacity for future solar contracts + infra buildup underway.
🔎 Cash Flow Analysis
| ₹ in Cr | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| CFO | 3 | 34 | 58 | 118 | 302 |
| CFI | -8 | 19 | -66 | -115 | -237 |
| CFF | 5 | -39 | -2 | 4 | -49 |
| Net Cash Flow | 0 | 13 | -10 | 6 | 17 |
🚨 They’re printing cash from operations — reinvesting most of it in long-term assets.
🎯 Forward-Looking Fair Value (FV) Estimate
- Assume PAT grows at 40% CAGR next 3 years (conservative vs past trend)
- Estimated FY27 PAT ≈ ₹630–650 Cr
- Apply P/E range: 35–45 (solar EPC + capital goods peer avg)
- Forward Value Range (FV): ₹1,500 – ₹1,950
At CMP ₹1,022, market is expecting moderation — but it’s still priced for growth.
🔭 Growth Outlook & Sector Trends
- Renewable Push: India targeting 500 GW non-fossil capacity by 2030
- Solar EPC Demand: Government + private sector tendering aggressively for rooftop + utility-scale projects
- Battery Storage Tie-ups: Expected next wave of synergy
- Risk: High valuation + competitive EPC margin pressures
Fun Fact: In April 2025, they bagged a ₹346 Cr order for a 300 MW AC solar project. That’s nearly 20% of FY25 revenue in one go.
🤓 EduInvesting Take
This is the Rags to Riches to Rollercoaster story.
Waaree went from a ₹1 crore revenue startup to a ₹1,600 crore solar warrior — with the stock multiplying like bacteria in a biology lab. But the ₹2,269 peak may have been a bit of solar sunstroke — because now it’s corrected 50%.
Still, if you’re betting on India’s energy independence, Waaree is not a bad horse to back.
✅ Capital-efficient
✅ Cash-generating
✅ Low-debt
✅ Government-backed demand
🤨 But at 46x P/E? Valuation-conscious folks might squint.
⚠️ Risks & Red Flags
- Stock trades at 23x book value — priced like it already conquered the Sun
- Competition: From both large EPC players and Chinese panel imports
- Execution pressure: One bad quarter = panic selloff
- FIIs entry is minimal (1.13%) — if they sell, retail might be left holding hot panels
Tags: waaree renewable 5 year recap, waaree technologies share analysis, solar EPC stocks India, multibagger solar stocks, waaree group financials, waaree vs premier energies
Author: Prashant Marathe
Date: 12 June 2025
