🧠 At a Glance
Waaree Energies is India’s largest solar module manufacturer with a blazing 21% domestic market share and a sizzling 44% export share. Margins? Juicy. Profit growth? 117% CAGR in 5 years. Stock price? Trading at 9.3x book and 47x earnings. Solar future looks bright — but is this stock too hot to touch or just heating up?
1. 🧨 Intro: The Solar Bubble or Bharat’s Sun King?
The solar energy story in India has more hype than a Bollywood debut. And Waaree is the Hrithik Roshan of this space — great physique (capacity), killer moves (exports), and an IPO that’s been trending hotter than Adani Green memes.
But the real question is — are the fundamentals as strong as the narrative? Or is this another Made-in-India dream that burns bright… and fades faster than a Diwali pataka?
2. ⚡ WTF Do They Even Do?
Waaree Energies = India’s go-to solar panel machine. But let’s break it down:
- ☀️ Core Biz: Manufacturing solar PV modules
- 🏭 Capacity: 13.3 GW (grew from 2 GW in FY21 😵💫)
- 📦 Facilities: 5 massive plants across India
- 🌍 Market:
- Domestic Share: 21%
- Export Share: 44% (largest in India)
Also provides turnkey EPC, project development, O&M services, but 90%+ revenue = module manufacturing.
3. 💸 Financials – Profit, Margins, ROE, Growth
Metric | FY23 | FY24 | FY25 |
---|---|---|---|
Revenue | ₹6,751 Cr | ₹11,398 Cr | ₹14,444 Cr |
EBITDA | ₹836 Cr | ₹1,575 Cr | ₹2,722 Cr |
Net Profit | ₹500 Cr | ₹1,274 Cr | ₹1,928 Cr |
EBITDA Margin | 12% | 14% | 19% |
ROCE | 52% | 44% | 35% |
ROE | 24.5% | 28% | 27.6% |
📈 In 3 years:
- Revenue grew 5x
- Profit grew 24x
- And margins expanded from 4% → 19%
Even ChatGPT is impressed.
4. 📊 Valuation – Is It Cheap, Meh, or Crack?
Metric | Value |
---|---|
CMP | ₹3,069 |
EPS (FY25) | ₹65 |
P/E | 47x 😬 |
Book Value | ₹330 |
P/B | 9.3x 🔥 |
Market Cap | ₹88,156 Cr |
EV/EBITDA (FY25) | ~34x approx |
Fair Value Range Estimate
Let’s apply 25–30x P/E to FY26e EPS of ₹80:
👉 FV Range = ₹2,000 – ₹2,400
(Current price = ₹3,069 = baked with future assumptions, and some garlic naan too)
5. 🍛 What’s Cooking – News, Triggers, Drama
- ⚡ Capacity: Now 13.3 GW — aims for 20 GW soon
- 📈 Revenue growth: 72% CAGR over 3 years
- 🧾 Govt Tailwinds:
- PLI schemes
- Domestic module mandates
- BCD (Basic Customs Duty) on Chinese modules
- 🧑💼 Board Changes:
- Sujit Varma out, Mahesh Chhabria in as Independent Director (Jul 2025)
- 🔋 Global Demand: EU & US diversifying away from China. India = next hub?
6. 🧾 Balance Sheet – How Much Debt, How Many Dreams?
Metric | FY25 |
---|---|
Net Worth | ₹9,479 Cr |
Debt | ₹1,199 Cr |
Total Liabilities | ₹19,747 Cr |
Fixed Assets | ₹4,051 Cr |
CWIP | ₹1,884 Cr |
Investments | ₹65 Cr |
- 🔋 Very manageable debt
- 🏭 Capex-heavy — CWIP nearly doubled, aggressive expansion mode
- 📦 Inventory + Debtors under control
7. 💵 Cash Flow – Sab Number Game Hai
Year | CFO | CFI | FCF (approx) | CFF |
---|---|---|---|---|
FY23 | ₹1,560 Cr | -₹2,088 Cr | -₹528 Cr | ₹642 Cr |
FY24 | ₹2,305 Cr | -₹3,346 Cr | -₹1,041 Cr | ₹909 Cr |
FY25 | ₹3,158 Cr | -₹6,808 Cr | -₹3,650 Cr | ₹4,036 Cr |
🟢 CFO growing strongly
🔴 FCF is negative — expansion eating all cash
🧨 Funded via massive financing = dilution risk someday?
8. 📉 Ratios – Sexy or Stressy?
Ratio | FY25 |
---|---|
ROCE | 35.1% |
ROE | 27.6% |
D/E Ratio | ~0.13x |
Inventory Days | 93 |
Payables | 78 |
CCC | 45 Days |
✅ Efficiency improving
✅ Best-in-class ROCE/ROE
🧂 But comes with valuation salt baked in
9. 💰 P&L Breakdown – Show Me the Money
- FY25 Revenue: ₹14,444 Cr
- OPM: 19%
- PAT: ₹1,928 Cr
- EPS: ₹65
🔥 The business is scaling with margin improvement.
🧠 From 4% margin in FY21 to 19% now — this ain’t normal. This is execution.
10. 🧩 Peer Comparison – Who Else in the Game?
Company | ROCE | OPM | P/E | MCap |
---|---|---|---|---|
Waaree Energies | 35% | 19% | 47x | ₹88K Cr |
Premier Energies | 41% | 27% | 50x | ₹47K Cr |
Shilchar Tech | 71% | 30% | 44x | ₹6.4K Cr |
Genus Power | 19% | 19% | 37x | ₹10K Cr |
👉 Waaree is not overpriced vs peers — but is definitely priced for perfection.
11. 📦 Misc – Shareholding, Promoters, FII Movement
Category | Jun ’25 |
---|---|
Promoters | 64.30% |
FII | 2.68% |
DII | 2.86% |
Public | 30.16% |
- 🚀 7.6 lakh+ shareholders
- 📈 FIIs doubled stake in Q1FY26
- ✅ No pledging
Solid promoter skin in the game — but large public base = volatility party.
12. 🧑⚖️ EduInvesting Verdict™
Waaree is India’s solar poster child. High growth, high margin, massive demand tailwinds, and export domination. But with a 47x P/E and massive capex underway, the valuation assumes everything goes perfectly.
✅ What’s Hot:
- 13.3 GW capacity
- Best-in-class ROE/ROCE
- Government support + export moat
❌ What’s Not:
- No dividend
- Negative FCF
- Fully priced (or even slightly overcooked)
🧮 EduFair Value Range: ₹2,000 – ₹2,400
CMP: ₹3,069 = Priced for 2027, not 2025.
✍️ Written by Prashant | 📅 9 July 2025
Tags: Waaree Energies, solar stocks, renewable energy, green hydrogen, PV module manufacturers, energy transition, clean tech, overvalued stocks, EduInvesting