Waaree Energies’ shares dropped by over 2% following Kotak Institutional Equities’ “SELL” rating. With a target price of ₹2,550, the firm cites elevated valuations as the primary reason for their cautious outlook. Despite being India’s largest solar module manufacturer, Waaree’s expansion plans into ingots, wafers, and cells may face challenges.
As per Kotak Institutional Equities, the Indian solar sector is poised for significant growth, with an expected 18% CAGR in utility-scale solar capacity additions until FY2030. Companies with integrated manufacturing capabilities, especially those with local US production, are expected to outperform competitors.
Kotak’s report highlights that, although Waaree is well-positioned for strong growth, particularly in domestic and US markets, the stock is overvalued at current levels, leading to the downgrade.
Key Highlights:
- Target Price (TP): ₹2,550 (7% downside)
- CAGR: Waaree’s earnings expected to grow by 35% from FY2024-2030E
- Sector Outlook: Indian solar market primed for growth, especially for vertically integrated firms.
Waaree Energies shares opened at 2,755.00, reaching a high of 2,760.60 and a low of 2,712.05 during the trading session. The stock’s 52-week high stands at 3,743.00, while the 52-week low is 2,300.00.
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