Shares of solar panel maker Waaree Energies gained 3.6% in intraday trade on Wednesday, March 25, hitting a day’s high of ₹3,197 apiece after the company said its board has approved a capital expenditure of ₹3,900 crore to set up a glass manufacturing plant through its wholly owned subsidiary, Waaree Green Glass Private Limited, with a capacity of 2,500 TPD.
The company said the proposed capex will be funded through a mix of debt and internal accruals.
In addition, the board also approved the acquisition of an additional equity stake in its subsidiary, Waaree Transpower Private Limited, increasing its holding from 64.04% to 75.10% of the paid-up equity share capital.
Waaree Transpower Private Limited is engaged in the business of designing, manufacturing, and supplying advanced transformer solutions. Its portfolio includes a wide range of transformer solutions, from oil-filled and dry-type to special-purpose and renewable energy applications.
The company said the additional stake acquisition will support capacity expansion and meet capital expenditure requirements.
Meanwhile, domestic brokerage firm Geojit Financial Services, in its recent note, has initiated coverage on the stock with a ‘buy’ rating and a target price of ₹3,650 apiece, indicating an upside potential of around 18% from the stock’s Tuesday closing price.
The brokerage expects the company’s consolidated revenue to grow at a CAGR of 22.3% to ₹39,180 crore over FY26–28E, driven by a 20.6% CAGR in module production. This is expected to translate into a 22.3% CAGR in module revenue to ₹34,945 crore and a 23.2% CAGR in EPC revenue to ₹4,187 crore by FY28E.
Free cash flow is expected to remain under pressure due to the company’s large capex plans, increasing dependence on external funding, and temporarily weakening leverage metrics. However, it is likely to turn positive by FY28E, enabling a gradual deleveraging.
“We see a potential for a partial re-rating if Waaree is able to execute its capacity ramp-up in adjacent businesses and profitability trends sustain due to backward integration,” the brokerage said.
Waaree Energies share price trend
The company’s shares have staged a strong comeback in March, rising 17% so far and defying the broader market sell-off. If the momentum sustains through the end of the month, the stock could snap its four-month losing streak, during which it had declined 21%.
The stock debuted on the Indian stock market in October 2024, listing at ₹2,500 and crossed the of ₹3,800 mark within a year to reach a fresh record high of ₹3,864. At current levels, it is down around 18% from that peak.
Disclaimer: We advise investors to check with certified experts before making any investment decisions.
