Waaree Energies shares: Brokerages remain upbeat on growth outlook; potential targets up to Rs 4,260

Brokerages reiterated their positive stance on Waaree Energies Ltd, citing strong positioning in the US market, diversified sourcing and expansion into new green energy segments.

Motilal Oswal Financial Services Ltd (MOSFL) said concerns around the preliminary 126 per cent countervailing duty (CVD) are unlikely to materially affect the company. "Waaree Energies (WEL), which earns roughly a third of its revenue from the US, does not use solar cells manufactured in India for its US supplies; therefore, the preliminary 126% CVD (countervailing duty) is unlikely to have a material impact on WEL's earnings," it noted.

MOFSL added: "The valuation of WEL has been derived through a sum-of-the-parts (SoTP) methodology, resulting in a TP of Rs 3,514/share. The domestic module business is valued at 13x FY28E EBITDA. The US module business is valued at 12x FY28E EBITDA, which is in line with global peers. The new business segment, valued at 10x FY28E EBITDA, is consistent with domestic peer valuations. The sum of these segment valuations (adjusting for net debt) results in a TP of Rs 3,514/share."

Nuvama Institutional Equities highlighted Waaree's diversification strategy. "Waaree signed its first electrolyser/GH2 supply order, $30 million investment in Oman for polysilicon supply to move away from an only module/cell play. Its ~70 per cent revenue share from retail (20–25 per cent), exports/US manufacturing (30–35 per cent) and EPC/O&M (18–20 per cent) provides a strategic decade-long moat. Moreover, its foray into new green businesses to post exponential growth over the next 3–5 years. At CMP, it trades at 18/17x FY27/28E EPS. 'BUY'; TP: Rs 3,867," it said.

Emkay Global also maintained its constructive view. "Waaree does not use Indian or any affected country's cells for its US supplies, and instead sources from other countries where the US duty is lower, at ~10 per cent. The company has ramped up its US supplies, supported by diversified, FEOC-compliant sourcing while expanding its US capabilities, including 1GW in Arizona (acquired) and 1.6GW expansion in Texas; this is likely to take total US capacity to ~4.2GW by mid-CY26, sufficient to meet its current order book. With its diversified non-China sourcing (right from polysilicon), Waaree is well placed in the US, which is a key long-term focus market. We retain our estimates; reiterate BUY with TP of Rs 4,260."