Brokerage firm Nuvama Institutional Equities has reaffirmed its contrarian Braveheart ‘Buy’ rating on Waaree Energies. Nuvama said the stock has run up 30% since its initiation.
The brokerage has now raised its price target by 29% to Rs 3,622 given strong prospects and guidance. Nuvama earlier had a price target of ₹2,805 on the counter.
The new target implies a potential upside of 20% from Wednesday’s closing levels. However, its still below Waaree’s recent post-listing high of ₹3,743, from where the stock is down nearly 20%.
Waaree reported strongest-ever quarter with EBITDA and profit at Rs 920 crore and Rs 620 crore. EBITDA margin at 23%, up 879 basis points on-year, due to start-up of 1.4 GW cell facility, enabling entry into high-priced DCR modules. Q4 production was robust at 2.1GW (up 53% year-on-year).
Nuvama reckons that Waaree’s free cash flow would turn positive from FY27 given stronger operating cash flow, which is expected to largely take care of its higher capex requirements.
With ₹15,500 crore of funds at its disposal, Waaree’s balance sheet remains strong.
The brokerage has also raised its FY26 and FY27 earnings per share estimates by 25% and 8%, respectively, to factor in strong prospects and management guidance.
On the flip side, global brokerage house Jefferies has downgraded Waaree Energies to ‘Underperform’ from its earlier rating of ‘Hold’, despite a strong fourth quarter performance and FY26 guidance.
The downgrade follows a sharp 25% rally in the stock over the past month. However, Jefferies has raised its price target on the stock to ₹2,100 from ₹2,030 earlier.
The foreign brokerage said that Waaree’s orderbook fell to 25 GW from 26.5 GW sequentially. Overseas, almost entirely the US, accounts for 57% of the orderbook. Management expects overseas to contribute only 17-22% of FY26 revenues suggesting rising salience of US market dynamics on Waaree’s operating performance by FY27.
Waaree Energies will see the end of its six-month shareholder lock-in tomorrow (April 25).
As per a Nuvama Alternative & Quantitative Research note, as many as 15 crore shares will become eligible to be traded as its shareholder lock-in ends. The number of shares that become eligible to be traded, amount to 53% of the company’s outstanding equity.
It must be made clear that the end of the shareholder lock-in does not mean that all the shares will be sold in the open market but they only become eligible to be traded.
Shares of Waaree Energies are trading 4.43% lower Thursday at ₹2,873. The stock is flat so far in 2025.
