🧵 At a Glance
Waaree Renewable is a solar EPC and power generation play that’s seen its revenue 10x and net profit 11x in just two years. With a 275% profit CAGR over 5 years and ROCE of 85%, it looks like the poster child of renewable wealth. But is this a clean-energy rocket or just solar FOMO? Let’s decode.
1. ⚡ Introduction – From Zero to ₹10,000 Cr Club
You know that one startup kid from school who did nothing till graduation and then suddenly launched a unicorn? That’s Waaree Renewable.
- From ₹2 Cr revenue in FY20 to ₹1,597 Cr in FY25
- From “who even buys solar?” to one of India’s top solar EPC players
- From zero debt to commanding ROCEs of 85%+
- And the stock? 5-year CAGR of 242%, even after a sharp fall from ₹2,000 to ₹985
But hold your horses. With a P/E of 44 and P/B of 22.5, valuations are catching more sunlight than solar rooftops.
2. 🏭 WTF Do They Even Do?
Waaree Renewable is part of the Waaree Group, a giant in solar panels, with 12 GW manufacturing capacity.
Business Segments:
- EPC Services (Engineering, Procurement, Construction):
Turnkey solar projects for government & private players - Renewable Power Generation:
Own solar power assets - Consulting & Advisory:
Helping others go solar, while billing them for it
They’re executing massive solar park projects (like the 2 GW MoU from June), but don’t manufacture panels themselves—that’s handled by parent Waaree Energies.
3. 💰 Financials – This Sun’s Been Blazing 🌞
| FY | Revenue (₹ Cr) | Net Profit (₹ Cr) | OPM (%) | ROCE (%) | ROE (%) |
|---|---|---|---|---|---|
| FY20 | ₹2 | ₹(0) | 2% | 5% | – |
| FY22 | ₹154 | ₹20 | 9% | 45% | 66% |
| FY24 | ₹867 | ₹149 | 23% | 107% | 64% |
| FY25 | ₹1,597 | ₹229 | 19% | 85% | 65% |
- Revenue CAGR (5Y): 281%
- Profit CAGR (5Y): 274%
- ROE 3-Year Avg: 70.5%
Margins have cooled off a bit in FY25, but hey, when you’re doing ₹300 Cr quarterly profit run-rates, who’s complaining?
4. 💸 Valuation – Is It Cheap, Meh, or Crack?
Current Valuation Metrics:
- P/E: 44.2
- P/B: 22.5
- Market Cap: ₹10,272 Cr
- EV/EBITDA (Est): ~28x
- PEG Ratio: ~0.17 (cheap, but also distorted by past insane growth)
Fair Value Range:
| Metric | Basis | Est. Value |
|---|---|---|
| DCF (assuming ₹230 Cr PAT, 25% growth, 12% WACC) | Conservative | ₹750–₹900 |
| P/E Basis (20–25x FY25 EPS ₹22) | Normalised | ₹440–₹550 |
| EV/EBITDA at 18–22x on est. ₹370 Cr EBITDA | Peer average | ₹670–₹820 |
🧮 EduInvesting FV Range: ₹550 – ₹900
Above ₹1,000 = priced for perfection.
5. 🗞️ What’s Cooking – Orders, MoUs, and Mo’ Hype
Recent Announcements:
- June 2025: MoU for 100 MWp EPC in Vietnam 🇻🇳
- June 2025: ₹1,480 Cr revised EPC order (upgraded by ₹247 Cr)
- March–June 2025: 300 MW, ₹346 Cr EPC win, delivery by FY26
Basically, they’re stacking solar panels and order books.
Also, don’t ignore: 323,000+ shareholders, up from 8,000 in 2022 = major retail cult following. This stock is a retail religion.
6. 🧾 Balance Sheet – How Much Debt, How Many Dreams?
Key Figures FY25:
- Debt: ₹27 Cr (almost zero)
- Cash: ₹302 Cr operating inflow in FY25
- Net Worth: ₹457 Cr
- Assets: ₹1,121 Cr
Extremely capital efficient. And yes, 20+ bagger in 5 years without leverage. That’s called solar-powered compounding.
7. 💵 Cash Flow – Sab Number Game Hai
| FY | CFO (₹ Cr) | CFI (₹ Cr) | CFF (₹ Cr) | Net Cash |
|---|---|---|---|---|
| FY23 | ₹58 | ₹(66) | ₹(2) | ₹(10) |
| FY24 | ₹118 | ₹(115) | ₹4 | ₹6 |
| FY25 | ₹302 | ₹(237) | ₹(49) | ₹17 |
- Solid operating cash
- Reinvesting massively in fixed assets (CWIP doubled to ₹56 Cr)
- Some minor debt raise recently to match capacity growth
8. 🧮 Ratios – Sexy or Stressy?
| Metric | Value |
|---|---|
| ROE (FY25) | 65% |
| ROCE (FY25) | 85% |
| OPM | 19% |
| Net Profit Margin | 14% |
| Debt/Equity | 0.06 |
| Inventory Days | 17 |
| Cash Conversion Cycle | 46 days |
It’s giving: capital-light, growth-heavy.
9. 📈 P&L Breakdown – Show Me the Money
FY25
- Revenue: ₹1,597 Cr
- Op Profit: ₹311 Cr
- Net Profit: ₹229 Cr
- EPS: ₹22.01
- Dividend payout: 5% (negligible)
Earnings compounding is real, but valuations are now implying future earnings of ₹400–₹500 Cr. Can they?
10. 🕵️ Misc – Shareholding, Promoters, Institutions
- Promoter Holding: Stable at 74.39%
- FIIs: Up from 0% to 1.13% in 1 year
- Public: Down from 25% to 24.25%
- # of Shareholders: 8,000 → 3.2 lakh in 2.5 years
- Insane cult following. But also risk of retail stampede during corrections (like the 50% fall in 2024)
✅ EduInvesting Verdict™
Waaree Renewable is the Sharmaji ka Beta of renewables – insane marks in every subject, great public image, and yet under pressure to keep scoring 100 every quarter.
🟢 What We Like:
- 5-year profit CAGR of 274%
- Clean balance sheet with real cash flow
- Growing EPC order book with global ambitions
- Solar megatrend + government push = tailwinds
🔴 What Worries Us:
- Valuation hotter than Rajasthan in May
- Cooling margins, high expectations baked in
- Marketcap > ₹10,000 Cr, needs ₹400–₹500 Cr PAT to justify P/E 50
So…
Is it a multibagger or a momentum mirage?
That’s for your financial advisor, risk appetite, and solar conviction to decide. We’re just here with the memes, math, and market masala.
🧠 As always: numbers ≠ nirvana. Do your own deep dive.
✍️ Written by Prashant | 📅 28 June 2025
Tags: Waaree Renewable, Solar Stocks India, Renewable Energy, Solar EPC, Multibagger Stocks 2025, High ROE Stocks, EduInvesting
Ask ChatGPT
