Jefferies has initiated coverage on Waaree Energies with a ‘Hold’ rating and set a target price of ₹2,030, indicating a limited downside from the current market price of ₹2,125.20. The brokerage acknowledges strong industry tailwinds but believes that long-term risks could weigh on valuations.
India’s solar installations are expected to grow at a 24% CAGR over FY24-30, supported by government policies favoring domestic solar modules. Additionally, US restrictions on Chinese modules have further strengthened the economics for domestic manufacturers like Waaree, which benefits from backward integration. However, Jefferies foresees a potential oversupply scenario in India by late 2027, along with the US nearing self-sufficiency, which could impact pricing power and growth prospects.
The brokerage values Waaree based on normalized profits and notes that stronger-than-expected solar installation trends or policy shifts could pose upside or downside risks to its estimates. Given the near-term demand drivers but longer-term uncertainties, Jefferies has opted for a cautious ‘Hold’ stance on the stock.
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