Stock to buy: Waaree Energies gets 22% upside target from Nuvama; here's why

Waaree Energies Ltd has received a ‘Buy’ rating from Nuvama Institutional Equities, with a target price of Rs 3,867 implying a 22 per cent upside, following the brokerage’s visit to five of its plant sites manufacturing solar modules, cells, BESS, electrolyser and inverter giga-scale facilities.
 
The domestic brokerage said stronger operating cash flow (OCF), unutilised Rs 2,100 crore in IPO proceeds and Ebitda generation of Rs 6,000 crore yearly should largely take care of higher capex of Rs 25,000 crore over the next 2–3 years, providing balance sheet strength. It suggested a target price of Rs 3,867 on the stock, which hinted at 22 per cent upside over Friday's intraday price of Rs 3,161.35.

Nuvama said strong execution at giga-scale facilities is underway and the 10GW solar cell plant progressing well. The trial production is likely by September 2026 and a ramp up over 4-6 months is likely. It cited a breakthrough in indigenous electrolyser manufacturing using base metals and suggested a commercial output by FY27. Nuvama said Waaree has received  offers from global majors for tie-ups. 

It said the LFP-based prismatic-cell (stable, cheaper and scalable) BESS facility is on track  and there is no impact of USA CV duties. "Waaree’s exports bypass the countervailing duty of 126 per cent. During our plant visit, we witnessed Waaree’s US export consignments marked as “Cells from Ethiopia” which gives us clarity on its origin and provides confidence on the levy of lower tariffs (10 per cent) on its export. Waaree’s US exports rose from Mar-26 after Jan/Feb-26 winter-led inventory build-up," Nuvama said.

Nuvama said Waaree Energies is progressing rapidly on its giga-scale manufacturing roadmap, with all projects on track for commissioning. 

It said the employee commitment and enthusiasm at the plant level was encouraging. Waaree's 10GW solar cell facility at Unn (Gujarat), spread over 110 acres, is under construction with trial production likely by September 2026 and ramp-up over 4–6 months. The 4GW TOPCon plant at Chikhli is scaling, with phased upgrade, enhancing efficiency and product superiority, Nuvama said adding that Waaree is working on various upcoming technologies like back-contact among others to enhance efficiency.

Nuvama said silver accounts for 8–10 per cent of the module cost. Waaree, it said, is working on reducing silver intake by decreasing size of fingers. It said new businesses will help record exponential three–five year growth, enabling a multi-decadal opportunity.