Shares of solar panel manufacturer Waaree Energies fell nearly 3% on Friday, April 25, despite the company reporting a robust financial performance for the March quarter. The decline comes amid investor concerns triggered by the expiry of the post-IPO lock-in period for major shareholders.
According to analysts at Nuvama Alternative & Quantitative Research, around 15 crore shares—equivalent to 53% of Waaree’s outstanding equity—became eligible for trading today. While these shares aren’t necessarily being sold, the overhang of potential liquidation is putting downward pressure on the stock.
This is a common trend seen post lock-in expiry, especially for stocks that witnessed strong listing gains and robust valuations. It increases free-float in the market and raises supply concerns, which can lead to short-term selling pressure.
Despite the fall in share price, Waaree Energies posted excellent Q4 results. The company reported a 34.1% year-on-year jump in net profit to ₹618.9 crore and a 36.4% rise in revenue to ₹4,003.9 crore. EBITDA margins expanded to 23% from 14.3% a year ago. The full-year FY25 net profit rose 107% to ₹1,932.15 crore.
However, Trendlyne data shows that analysts remain cautious. The average target price for the stock stands at ₹2,352, implying a downside of nearly 17% from current levels. The consensus recommendation remains a ‘Sell.’
Meanwhile, shares of Waaree Energies were trading at ₹2,758 apiece, down ₹81.90 or 2.88% on the NSE at 9:36 a.m.
