Can Waaree Energies Sustain Its Growth Momentum Amid Sectoral Competition?
About Waaree Energies and Motilal Oswal’s View
Motilal Oswal has initiated coverage on Waaree Energies with a Buy rating and target price of ₹4,000, citing its unmatched scale in India’s solar manufacturing ecosystem. Waaree’s vertically integrated model, covering modules, inverters, and BESS, positions it as a key beneficiary of the government’s renewable energy push.
The report emphasizes Waaree’s ability to navigate macroeconomic and policy shifts through its in-house cell manufacturing and aggressive capacity expansion plan.
Key Financial & Operational Metrics
| Parameter | FY26E | FY27E–28E Outlook |
|---|---|---|
| Installed Cell Capacity | 4.2 GW | Up from 2.6 GW in FY24 |
| Capex Cycle | Strong Ongoing | Focused on backward integration |
| Target Price | ₹4,000 | Implied Upside ~22% |
| CMP | ₹3,278.65 | Buy Recommendation |
Growth Outlook: Strong demand visibility supported by policy reforms, localization drive, and capacity ramp-up through FY28.
Integration Strength: Comprehensive solar value chain coverage — cells, modules, EPC, BESS, and green hydrogen.
Key Risks: Margin pressure from competition and policy changes; heavy capital intensity impacting short-term free cash flow.
Investors can track technical setups using the Nifty Trade Opportunity.
Peer Comparison Snapshot
| Company | Segment | FY28E Capacity | EV/EBITDA |
|---|---|---|---|
| Waaree Energies | Solar Modules | 4.2 GW | 28× |
| Adani Solar | Modules & Cells | 4.0 GW | 26× |
| Websol Energy | Cells | 1.0 GW | 21× |
Waaree’s integrated scale, strong domestic footprint, and policy tailwinds provide visibility for sustained earnings growth over the next 3 years.
Strengths & Weaknesses
Strengths
|
Weaknesses
|
Execution and steady capacity utilization will be key determinants of Waaree’s medium-term profitability.
Opportunities & Threats
|
|
Waaree remains one of India’s most promising clean-energy manufacturing plays, positioned to capture exponential solar demand growth.
Valuation & Investment View
- Short-term: Positive bias; supported by order inflow visibility.
- Medium-term: Strong; FY27–28E expansion to aid margin recovery.
- Long-term: Structural Buy backed by renewable capex and localization drive.
For derivative sentiment cues, track BankNifty Trade Opportunity.
Waaree Energies stands as a flagship in India’s clean-tech manufacturing wave, offering exposure to green growth and energy self-reliance.
Investor Takeaway
Indian-Share-Tips.com Nifty Expert Gulshan Khera, CFP®, who is also a SEBI Registered Investment Adviser, believes Waaree Energies’ integrated business model and scale-up strategy make it one of the most promising solar plays in India. Explore more expert insights at Indian-Share-Tips.com, which is a SEBI Registered Advisory Services.
SEBI Disclaimer: The information provided in this post
