Waaree Energies shares dive 6% to hit all-time low; analysts see more pain

Shares of Waaree Energies Ltd continued their sharp fall for the third straight session in Friday's trade. The stock slipped 5.83 per cent to hit a record low of Rs 2,207.35. At this price, it has tumbled 17.41 per cent in just three trading sessions.

Analysts at Kotak Institutional Equities said the new US administration's move to halt the inflation reduction act (IRA) disbursements and other green infrastructure funding initiatives may hit both American IPPs (Independent Power Producers) and Indian module manufacturers, including Waaree Energies.

Given the temporary nature of this order, we have not factored in any impact on Waaree and our fair values for Waaree currently remain unchanged, the domestic brokerage stated. Based on our scenario analysis, a complete repeal of IRA will result in a reduction in fair values for both Waaree to Rs 2,000 (Rs 2,550 in the base case), it added.

A few technical analysts also suggested that the counter could remain pressured in the short term.

"The stock has broken below the major support zone of Rs 2,300, which indicates that the stock can fall further. So, investors should exit at current levels," Kiran Jani, Head of Technical Research at Jainam Broking, told Business Today.

"It appears that Rs 2,300 was the last support level and a further decline below the said level will disrupt the near-term outlook, said Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One.

The scrip saw high trading volume on BSE today as around 2.13 lakh shares were last seen changing hands. The figure was higher than the two-week average volume of 1.18 lakh shares. Turnover on the counter came at Rs 48.82 crore, commanding a market capitalisation (m-cap) of Rs 64,612.86 crore. There were 1,67,003 sell orders today against buy orders of 16,422 shares.

Incorporated in December 1990, Waaree Energies is an Indian manufacturer of solar PV modules with an aggregate installed capacity of 13.3 GW. The company is scheduled to declare its quarterly results on January 30, 2025.