Waaree Energies Ltd.
Infrastructure · NSE
52-week range
₹2,403 – ₹3,863
From 52w high
-16.4%
RSI (14)
50.0
vs SMA 50 / 200
↑ 50 · ↑ 200
Waaree Energies (WAAREEENER) is a solar module manufacturer trading at ₹3,220 with a trailing PE of 28.4x (forward PE 18.6x), reflecting a significant earnings growth expectation embedded in the price. The stock has returned 22.55% over 12 months and sits above both its 50-DMA (₹3,086.8) and 200-DMA (₹3,125.5) with RSI at 49.3 — a neutral momentum reading. Revenue has grown at a 5-year rate of ~112% annually, but this expansion has been accompanied by a debt-to-equity ratio of 21.4, which stands as the most structurally significant metric in the profile.
- ✓ROE of 31.57% ranks 1st among 6 Infrastructure peers (next highest: CGPOWER at 19.56%, L&T at 15.54%), indicating high returns on shareholder equity relative to sector.
- ✓5-year revenue growth of ~112% and 5-year earnings growth of ~71% reflect a company that has scaled rapidly through a high-growth phase of the domestic and export solar market.
- ✓Forward PE of 18.6x is 34% below the trailing PE of 28.4x, implying analyst consensus embeds substantial earnings growth into FY27 estimates — the forward multiple compresses meaningfully if those estimates are met.
- ✓Price is above both the 50-DMA (₹3,086.8) and 200-DMA (₹3,125.5), with a 52-week drawdown of 16.6% from peak — suggesting price has recovered from a deeper trough without breaking longer-term trend structure.
- ✗Debt-to-equity of 21.4 is the most elevated leverage ratio in the peer set and is on a rising trend per persistence data. FCF was positive in only 3 of the years tracked, indicating the company regularly consumes more cash than it generates at the operating level after capex.
- ✗A third-party commentary piece (Simply Wall St, May 2026) flagged concerns about issues underlying reported earnings quality — an independent signal that the headline profit margins (13.99%) may warrant closer scrutiny of accruals and non-cash items.
- ✗Consistency score of 78 and quality score of 56 suggest moderate operational reliability; while ROE is high, the combination of rising debt and selective FCF generation reduces the durability of that figure.
- ✗News corpus of 7 items over the tracked window is thin; sentiment distribution (3 positive, 2 neutral, 2 negative) is close enough that a single additional negative item would shift the overall label — making the current neutral classification fragile.
- ·Waaree Energies reported record FY26 revenue and profit growth alongside a Rs 10,000 crore fundraise announcement (April 29, 2026) — the fundraise, if equity-linked, would affect the D/E ratio directionally; if debt-linked, it would extend the leverage profile further.
- ·Motilal Oswal published a note on May 8, 2026 with a stated price target of Rs 3,850 — the stock closed at ₹3,220 as of this analysis, implying a 19.6% gap to that broker-stated target. This is one named broker view among 13 analysts tracked (mean rating 2.28 on 1–5 scale).
- ·Simply Wall St published a note on May 7, 2026 raising questions about whether WAAREEENER earnings quality is fully reflected in headline numbers — a direct counterpoint to the record-results narrative from two days earlier.
- ?Does the D/E of 21.4 reflect project-finance debt (typically ring-fenced, asset-backed) or corporate balance-sheet borrowing — and how does that distinction affect interpretation of the leverage ratio for a solar EPC and manufacturing company?
- ?If the Rs 10,000 crore fundraise is equity, how does the resulting dilution interact with the forward PE of 18.6x, and does that multiple still hold after adjusting for the expanded share count?
- ?The 5-year revenue CAGR of ~112% is exceptional, but how much of it is attributable to export orders (particularly US IRA-linked demand) versus domestic installations — and how sensitive is the order book to US trade policy changes?
- ?FCF was positive in 3 of the years tracked — in which years was it negative, and what drove those cash deficits: capacity expansion capex, working capital absorption, or both?
PE
28.4
Forward PE
18.6
ROE
+31.6%
Profit margin
+14.0%
D/E
21.40
Dividend yield
+0.1%
Quality score
56/100
ROE 5y above 15%
4/5 yrs
FCF 5y positive
3/5 yrs
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.Analysis generated 11 May 2026.