Bernstein has initiated coverage on Waaree Energies with an ‘Underperform’ rating and a target price of ₹1,902, despite recognizing the company’s early leadership in the Indian solar PV industry. The brokerage applauded Waaree’s strong execution and ability to scale rapidly in a high-growth segment, but warned that current returns may not be sustainable.
Bernstein emphasized that much of the solar industry’s profitability is currently supported by regulatory arbitrage, which could narrow going forward. While acknowledging Waaree’s strategic diversification plans into batteries and downstream solar applications, the firm believes it is too early to ascribe full valuation credit.
“Supernormal returns rarely last in heavily regulated markets,” Bernstein noted, highlighting that valuations remain elevated, even as large conglomerates eye a greater share of the renewables pie.
