Waaree Renewables Share Price: Stunning 68,000% Rally, Recent Order Cancellation Impact, and Future Outlook
Waaree Renewables has delivered a record-breaking 68,000% return in 5 years. But a recent order cancellation raises questions about its valuation and future prospects. Here is a detailed analysis of its share price, business fundamentals, and what investors should watch now.
Table of Contents
Introduction
Waaree Renewables has captured headlines after its staggering 68,000% share price rise over the last five years. However, a recent update regarding cancellation of a significant order has rattled investors. This article provides an in-depth analysis of the company’s fundamentals, reasons behind the rally, recent news impact, and whether it remains an attractive investment.
Waaree Renewables: Company Overview
Waaree Renewables, a part of the Waaree Group, is among India’s leading renewable energy companies, with a focus on:
Solar EPC (Engineering, Procurement, Construction)
Rooftop solar solutions
Utility-scale solar projects
The company has expanded rapidly in the last decade, backed by India’s growing renewable energy targets and supportive government policies.
Share Price Performance – The 68,000% Phenomenon
The Unprecedented Rally
According to LiveMint, Waaree Renewables’ share price has delivered a 68,000% return in just five years, making it one of the best-performing stocks in the Indian market. To put this in perspective:
5 years ago: The stock traded at around ₹5
Today: It trades at ₹3,400+ (approximate recent price)
Reasons Behind This Surge
Massive growth in India’s solar sector
Aggressive project wins and order book expansion
Strategic focus on rooftop solar and utility projects
Strong branding in solar panels and EPC solutions
However, such meteoric rises often trigger valuation concerns and require deeper scrutiny into company fundamentals.
Recent Developments: Order Cancellation News
What Happened?
On Monday, Waaree Renewables shares were in focus due to the cancellation of an earlier announced order. The company informed exchanges that:
“An EPC order worth ₹1,400 crore has been cancelled by the client, leading to readjustment in revenue projections for FY25.”
Market Impact
Immediate decline of 5-8% in intraday trading
Investor concerns about order execution risks
Questions on long-term revenue visibility
Investor Sentiment & Market Reactions
While the stock faced temporary selling pressure, many analysts believe that the order cancellation does not significantly dent the company’s strong order book. However, it may affect near-term earnings growth projections.
Financial Performance Analysis
Key Metrics (FY24)
Revenue: ₹2,875 crore (approximate)
Net Profit: ₹510 crore
EBITDA Margin: ~18%
Debt-to-Equity: 0.42 – manageable leverage
Strengths
Strong brand recall in solar sector
Consistent project execution track record
Policy support for renewables
Risks
High valuations with P/E over 80x
Project execution delays or cancellations
Competition from global solar module suppliers
Expert Opinions on Future Outlook
Brokerages and market experts are divided:
| Brokerage | View |
|---|---|
| ICICI Direct | Hold with cautious approach due to valuation premium. |
| HDFC Securities | Positive on long-term prospects but near-term correction likely. |
| Motilal Oswal | Structural growth story intact, but prefer adding on dips. |
Should You Buy, Hold, or Sell Waaree Renewables?
Buy
If you believe in India’s solar sector exponential growth and are ready to take valuation risks for potentially strong returns.
Hold
If you are an existing investor with significant gains, holding through short-term volatility may be wise while monitoring order book updates.
Sell
If you are risk-averse or uncomfortable with high valuation multiples and recent news impact.
FAQs
Q1. Why is Waaree Renewables’ share price in focus recently?
Because of a recent EPC order cancellation worth ₹1,400 crore, which impacted investor sentiment.
Q2. What is Waaree Renewables’ current share price?
It trades around ₹3,400+, having delivered a 68,000% return in five years.
Q3. Is Waaree Renewables a good investment for the long term?
It has strong fundamentals and sector growth prospects, but investors should watch valuation risks.
Q4. What does Waaree Renewables do?
The company provides solar EPC solutions, rooftop solar installations, and utility-scale solar projects.
Helpful Resources
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Conclusion
Waaree Renewables’ 68,000% rally has been a remarkable story in India’s renewable energy market. While the recent order cancellation news raises caution, the company’s strong fundamentals and renewable sector tailwinds continue to support its long-term growth potential. Investors should remain vigilant on order execution and valuation levels before fresh allocations.
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