Shares of market leader solar stock soared 3 percent after the announcement of major investments in green energy initiatives, including manufacturing electrolyzers, lithium-ion storage cells, and inverters. These projects, aimed at boosting renewable energy infrastructure, cost a total of Rs.3,644 crore and will be funded through a mix of debt and internal accruals.
Price Movement
During Tuesday’s’ trading session, Waaree Energies Ltd. reached an intra-day high of Rs.2,965.00 per share, rising 1.01 percent from its previous close of Rs.2,932.45 each. The shares have retreated since then and are currently trading at Rs.2,926.40 apiece. From the IPO price, the shares have delivered over 95 percent returns.
What happened
Waaree Energies Ltd plans a capital expenditure of Rs.551 crores, along with an investment of Rs.200 crores, to establish a 300 MW Electrolyser manufacturing facility under its wholly-owned subsidiary Waaree Clean Energy Solutions Private Limited, as part of the PLI tender by MNRE through SECI.
Additionally, the company has allocated Rs.2073 crores in capital expenditure and Rs.650 crores in investment to set up a 3.5 GWh Lithium-Ion Advanced Chemistry Storage Cell manufacturing plant under Waaree Energy Storage Solutions Private Limited.
Both projects will be financed through a combination of debt and internal accruals. Furthermore, Rs.130 crores is earmarked for the inverter business through its subsidiary Waaree Power Private Limited, with Waaree Energies Ltd contributing up to Rs.40 crores.
Also read….
Capacity Enhancement
As of September 30, 2024, the company’s unexecuted order book stands at 1,702 MW (1.7 GW), indicating strong demand for solar energy solutions. These projects are expected to be completed within 9 to 12 months. Waaree also has an active bidding pipeline of 17.8 GW, highlighting its potential for securing additional contracts.
Waaree is India’s largest manufacturer of solar PV modules with an installed capacity of 13.3 GW. To meet increasing demand, the company is expanding its production capacity, including a new U.S. facility that will begin at 3 GW and ramp up to 6 GW by 2027, aligning with India’s renewable energy goals and the ALMM initiative.
Financials
In its latest financial update, the company reported a revenue of Rs.3,574 crore in Q2 FY25, rising 1 percent from Rs.3,537 crore in Q2 FY24. Similarly, the company reported a net profit of Rs.376 crore in Q2 FY25, rising 18 percent from Rs.320 crore during the same period.
About the Company
Waaree Energies Limited, founded in 1990 and headquartered in Mumbai, is India’s largest manufacturer of solar photovoltaic (PV) modules, boasting an operational capacity of 12 GW. The company focuses on providing sustainable energy solutions and has a significant international presence, exporting approximately 70 percent of its products to markets like the US and Canada.
Written by – Siddesh S Raskar
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
Start Your Stock Market Journey Today!
Want to learn Stock Market trading and Investing? Make sure to check out exclusive Stock Market courses by FinGrad, the learning initiative by Trade Brains. You can enroll in FREE courses and webinars available on FinGrad today and get ahead in your trading career. Join now!!
