This Midcap Solar stock which deals in the business of manufacturing solar PV modules was up 3 percent intraday trade after the company received an order for Solar Module supply of upto 1GW.
Price Action (WA:ACT)
With a market capitalization of Rs. 85,303 Crores, the shares of Waaree Energies Ltd (NS:WAAN) Limited were up by 3 percent in the day’s trade touching a day’s high of Rs. 2,992.45 per share. The stock reiterated from the day’s high and closed at Rs. 2,972 per share which is 2.37 percent higher than the previous closing price of Rs. 2,900.70 apiece. The stock has delivered a return of 27 percent which has outperformed the Nifty Index on the YTD basis.
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What Happened
The company has received orders from a renowned customer who is engaged in the business of owning, developing, and operating renewable power projects in India for the Supply of Solar PV Modules. This supply of solar modules is scheduled to start in FY2024-25 and FY2025-26. The size of the order is 1GW of Solar PV Modules.
About the Company
Waaree Energies is a leading Indian solar energy company specializing in the manufacturing of solar photovoltaic modules and providing solar power solutions. The company was established in 1989. They operate across the entire solar value chain, including project development, engineering, procurement, and construction (EPC) services. Their business model focuses on delivering sustainable energy solutions to residential, commercial, and industrial sectors.
Waaree Energies also engages in solar power generation through its own projects while offering financing options to clients. With a commitment to innovation and sustainability, they aim to improve renewable energy adoption in India and beyond.
Current Order Book and Future Expansion
The company has an order book of approx 20GW as of H1FY25, out of which 72.50 percent is from Overseas and the remaining 27.50 percent from domestic as of the September 2024 quarter. The company has a current capacity of 13.3GW and plans for 3.4GW in Module manufacturing in the US, 5GW Solar cell manufacturing in the US, and 6GW Integrated facility in Odisha.
Financials & Ratios
Its Revenue from operations grew by 1.04 percent year on year from Rs. 3,537 Crores in Q2FY24 to Rs. 3,574 Crores in Q2FY25, accompanied by a profit of Rs. 320 Crores to a profit of Rs. 376 Crores.
In terms of Return ratios, the company has a return on capital employed (ROCE) of 34.96 percent and the return on equity (RoE) stood at 34.35 percent. The net profit margin stood at 8.93 percent and the debt-to-equity ratio stood at 0.15 as of FY24.
Shareholding Pattern
As of October 2024, the shareholding pattern with the promoter’s stake holding a share of 64.30 percent in Waaree Energies, Foreign Institutional Investors (FII) holding around 2.23 percent, Domestic Institutional Investors (DII) holding around 2.10 percent, and public holdings standing at 31.37 percent.
Written by Santhosh S
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