Waaree outperforms Nifty Energy index; Nuvama sees it benefiting from rising GH2 adoption

Waaree Energies has outperformed Nifty Energy Index in the last nine and six months, but has underperformed with a wide margin in the last three-months period. According to Choice Broking's analysis, Waaree's relative performance has remained volatile lately, while the energy index has largely remained flat.

Over the 9-month period, Waaree Energies (up 40.7 per cent) has significantly outperformed Nifty Energy Index (up 11.1 per cent), indicating strong earlier momentum, possibly driven by stock-specific triggers or sector tailwinds. Similarly, Waaree's (up 4.9 per cent) has shown significant resilience against the Nifty Energy index (down 2.4 per cent).

The steep 3-month underperformance after strong 9-month gains points to profit-booking, valuation cooling, or near-term concerns. This correction does not fully erase earlier gains but signals higher volatility compared to the index. On the other hand, Nifty Energy shows stable but low-return behavior, whereas Waaree exhibits high beta characteristics.

Choice Broking, without rating the stock, visited Waaree Energies facility in Navsari, Gujarat, which is spread over 150 acres, consisting of 21 module lines, 11 cell lines and an affiliated laboratory, which manufactures up to 13.7 GW of module and 5.4 GW of cell. The modules are tested to withstand diverse climatic conditions, aligning with requirements for global markets, it said.

"Some process features observed at the facility appear comparatively advanced relative to common industry practices," it noted. "It plans to add capacity of 10 GW of cells and 10 GW of Ingot-Wafer across facilities. Waaree plans to invest up to Rs 10,000 crore for battery energy storage system, up to Rs 180 crore for inverters and up to Rs 680 crore for Green Hydrogen Electrolyser."

Nuvama Institutional Equities sees Waaree Energies among the biggest beneficiaries of green hydrogen (GH2) and ammonia (GH3) adoption. Hydrogen (H2) demand is set to double to 12mtpa by 2030 (fertilisers, refining, petchem) with other sectors (steel, CGD, etc) set to contribute to GH2 demand post-2030E, it said.

"GH2 cost, a limiting factor to demand uptick, could halve by 2030E and GNH3 tender prices are close to landed cost of NH3, implying near-viability. iv) New tech, indigenisation could cut electrolyser stack cost by 75 per cent," it added. Nuvama has a 'buy' rating on Waaree Energies with a target price of Rs 4,015.

Waaree Energies has incorporated a wholly-owned new subsidiary, Waaree Forever Energies, viz Eco Flux Renewables on December 15, 2025 with certificate of incorporation received on the other day. It belongs to the independent power producer (IPP) industry, based in Mumbai.

Emkay Global initiated coverage on Waaree Energies with 'buy' and with target price of Rs 4,260, valuing the core PV business at 14 times March 2028E EV/Ebitda. India’s solar manufacturing development has been supported by favourable regulations like ALMM, BCD, and DCR and, despite the module overcapacity now, integration of cell and wafer-ingots, it said.

Shares of Waaree Energies dropped nearly a per cent at Rs 2,942 on Tuesday, with its market capitalization slipping below Rs 85,000 mcap mark. The stock is down 24 per cent from its 52-week high at Rs 3,864.40, hit in September 2025.