In this article, we will discuss about Waaree Energies share price target 2024 to 2030, their financials, future plans and more things based on the previous history of the company and various reports of brokerage firms.
Table of Contents
IPO Details
India’s most significant solar panel manufacturing player, Waaree Energies Limited, has priced its initial public offer (IPO) for public intake of Rs 1,427 to Rs 1,503 a share. It plans to raise a significant Rs 4,321.44 crore through this IPO, Rs 3,600 crore in fresh shares and Rs 721.44 crore through an offer for sale (OFS).
The IPO for subscription opened on 21 October 2024 and closed on 23 October 2024. BSE and NSE are expected to list shares from 28.10.2024.
| Bidding Dates | 21 Oct to 23 Oct 2024 |
| Price Range | Rs 1,427- Rs 1,503 |
| Lot Size | 9 |
| Minimum Investment | 12,843 Rs |
| Issue Size | 4,321.44 Cr |
| Listing Price | Rs 2,500 |
Subscription Status
Waaree Energies IPO has subscribed 76.22x as of 23 Oct 24 at 5.00 PM.
| Qualified Institutional Buyers | 208.63x |
| Non-Institutional Investor | 62.37x |
| Retail Individual Investor | 10.61x |
| Employees | 5.07x |
| Total | 76.22x |
Industry Overview
On the increase is the demand for renewable energy sources such as solar energy, which goes on to improve the industry of solar power in India. The positive environment for its business is being provided by the strong support of the Indian government for solar projects and global efforts to curb carbon emissions, says Waaree Energies.
The solar energy sector is growing because more and more businesses and houses adopt solar energy solutions. Declining panel costs are to help drive expansion into the industry, in part because of factors from advances in technology to a need to combat climate change.
Company Overview
Waaree Energies Limited is India’s largest Solar Photovoltaic (PV) Module manufacturer. As a niche in the renewable energy sector, it has successfully established its own space, being founded under a mission to provide sustainable energy solutions.We are backed by global accreditations for having advanced manufacturing facilities to produce solar panels of top quality.
This shows us an indication of the company’s market presence from the wide range of its customers, such as domestic customers and international customers. Innovation and sustainability have been the two forces that made Waaree Energies a dominating force in the Indian solar energy segment.
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Financials
Over the years, Waaree Energies has been a financial powerhouse. A favorable debt/equity ratio (0.08x) and interest coverage ratio (22.17x) with a robust balance sheet (total borrowings Rs 317.32 crore in FY24) were the company reported. Waaree Energies has been growing its financials immensely due to the operational efficiency and healthy market demand for its products.
Further supporting the company’s prudent capital management and strategic investments in capacity expansion and technology is the company’s financial health.
Net-Profit Margin
Waaree Energies is profitable company while the company has reported Rs 1,274.38 Crore in FY24.
| Year | Revenue | Profit |
|---|---|---|
| 2024 | 11,397.61 Cr | 1,274.38 Cr |
| 2023 | 6,750.87 Cr | 500.28 Cr |
| 2022 | 2,854.26 Cr | 79.65 Cr |
Waaree Energies share price target 2024
Waaree Energies spends its time researching and developing to always provide the best research and development thus giving them the best offering in the market by providing them with a competent edge.
| 2024 | Lowest | Highest |
|---|---|---|
| 1st Price Target | 2480 | 2655 |
| 2nd Price Target | 2550 | 2780 |
Waaree Energies share price target 2025
Government provides an enabling environment for growth under government policy and programmes for renewable energy promotion.
| 2025 | Lowest | Highest |
|---|---|---|
| 1st Price Target | 2680 | 3055 |
| 2nd Price Target | 2750 | 3180 |
Waaree Energies share price target 2026
Capital-Intensive Business For growth, companies would also need to raise a lot of cash, which is very capital-intensive for the solar panel manufacturing industry.
| 2026 | Lowest | Highest |
|---|---|---|
| 1st Price Target | 3090 | 3655 |
| 2nd Price Target | 3150 | 3820 |
Waaree Energies share price target 2030
Waaree Energies is also exploring new markets and growing its international footprint to be able to earn revenues from other than the Indian market and reduce dependency on the domestic market.
| 2030 | Lowest | Highest |
|---|---|---|
| 1st Price Target | 3750 | 4555 |
| 2nd Price Target | 3850 | 4760 |
Strengths of Waaree Energies
- Strong Market Position: Like Dura Aluminum, Waaree Energies is also one of India’s largest solar panel manufacturing companies, therefore, having a huge market competitive advantage.
- Advanced Manufacturing Facilities: The company’s sophisticated manufacturing plants guarantee an excellent quality of solar panels that comply with the standards in the world.
- Diversified Customer Base: Waaree Energies has large client base covering the entire range and both the domestic and international clients, thus ensuring stable and diversified revenue stream.
Weaknesses of Waaree Energies
- High Competition: In the solar energy industry, many are players, all fighting to win market share, touching the company’s pricing power as well as profitability.
- Dependence on Government Policies: Actions of the governments, through their related policies and regulation can influence the operation of the company and its financial performance.
- Market Volatility: The personal inflation tendency of the company depends on raw material prices, exchange rates and global economic conditions changes.
Future Plans
Ambitious plans are in work at Waaree Energies to take up a leading mantle in the solar energy sector. In fact, the company has been developing a 6 GW (gigawatt) of Ingot Wafer, Solar Cell and Solar PV module manufacturing facility in Odisha.
This in turn will expand Waaree Energies reach and its capacity to meet the rising demand for solar energy solutions. The company also plans to invest in research and development to discover and advance product offerings.
Conclusion
Investors should snap up an opportunity to invest in the growth of the solar energy industry via Waaree Energies’ IPO. The ability of the company to be the leader in the renewable energy sector can be seen in the terms of the company’s strong and leading market position, state of the art manufacturing facilities, broad range of customer base and commitment to innovate.
Although decisions can and should be made carefully, investors should not overlook the competitive landscape, government policy risks and market volatility when deciding.
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Disclaimer: I am not a SEBI-registered investment adviser or research analyst. The information shared is only for educational purposes. This is not investment advice.
FAQs
1. Will Waaree Energies be a multibagger?
Yes, it is hard to predict for sure, but as it is a strong market leader with a growth strategy and clearly a good industry to make business, we can say that the company should be a multibagger if it fully executes its plans and the industry keeps growing.
2. Is Waaree Energies a debt free company?
Waaree Energies isn’t fully debt free. Company total borrowings as of FY24 Rs 317.32 crore.
3. Is Waaree Energies a viable company?
Not only has Waaree Energies achieved consistent profitability, but its revenue has grown with healthy profit margins, implying efficiency in the operations and the market demand for its products.
4. What is expected listing price of Waaree Energies?
Because of the high demand and the positive market sentiment regarding the IPO, the expected listing price of Waaree Energies’ shares may, however, be towards the upper end of the specified price band.
5. What is Gray market price of Waaree Energies?
With the latest market price of Waaree Energies at around Rs 1,500 per share, strong investor interest and a buoyant market feeling ahead of the listing on the IPO space could be seen.