Buy Waaree Energies; target of Rs 3115: Prabhudas Lilladher

Moneycontrol • 3 days ago

Original source

Key Investment Pillars

  • Waaree Energies' revenue growth is expected to be driven by the commissioning of the 10GW solar cell facility, which will increase total cell capacity to 15.4GW and raise the cell-to-module capacity ratio from approximately 22% to 64%.
  • The company's US domestic manufacturing revenue is expected to scale up significantly in FY28, driven by the addition of 3.2GW of module manufacturing capacity in the US.
  • Margin expansion is expected due to higher utilization of US manufacturing facilities and improved US realizations following the implementation of minimum import price regulations.
  • The company's retail revenue is expected to reach INR100-110bn in FY27, accounting for a significant portion of the company's revenue.

Thesis Validation Checklist

  • Observable signals to validate the thesis include: module production and sales growth, improvement in EBITDA margin, and successful commissioning of the 10GW solar cell facility.
  • Investors should watch for any changes in the US minimum import price regulations and their impact on Waaree Energies' US manufacturing business.
  • The company's ability to achieve its FY27 operating EBITDA guidance of INR70-77bn will be a key indicator of its success in executing its growth strategy.