Waaree Energies: India’s Solar King or Overvalued PowerPoint Presentation?

Waaree Energies: India’s Solar King or Overvalued PowerPoint Presentation?

🧠 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

MetricFY23FY24FY25
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 Margin12%14%19%
ROCE52%44%35%
ROE24.5%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?

MetricValue
CMP₹3,069
EPS (FY25)₹65
P/E47x 😬
Book Value₹330
P/B9.3x 🔥
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?

MetricFY25
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

YearCFOCFIFCF (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?

RatioFY25
ROCE35.1%
ROE27.6%
D/E Ratio~0.13x
Inventory Days93
Payables78
CCC45 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?

CompanyROCEOPMP/EMCap
Waaree Energies35%19%47x₹88K Cr
Premier Energies41%27%50x₹47K Cr
Shilchar Tech71%30%44x₹6.4K Cr
Genus Power19%19%37x₹10K Cr

👉 Waaree is not overpriced vs peers — but is definitely priced for perfection.


11. 📦 Misc – Shareholding, Promoters, FII Movement

CategoryJun ’25
Promoters64.30%
FII2.68%
DII2.86%
Public30.16%
  • 🚀 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

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