Waaree Renewables Technologies Ltd- Research Report

 

Incorporated in 1999, Waaree Renewables Technologies Ltd is engaged in the business of generation of power through renewable energy sources and also provides consultancy services. Waaree Energy is one of the largest vertically integrated new energy companieswith 32 years of experience. It has India's largest Solar panel manufacturing capacity of 12GW at its plants in Chikhli, Surat and Umbergaon in Gujarat.Company has manufacturing capacity of 12GW Module Capacity and 5.4GW Cell capacity in India and 3 GWManufacturing capacity in US as of FY24. It is Tier 1Solar Module manufacturer and No.1 Indian Module Manufacturer in India.

Its product portfolio includes Solar Modules and Inverters (On Grid and Off Grid). The company also offers various EPC solutions such as Ground mounted solar for commercial and residential usages, Rooftop Solar for Commercial, Residential and Industrial usages and Floating Solar. Company also undertaken projects for Operation and maintenance services for Maharashtra Seamless Ltd. and Waaneep Solar Pvt. Ltd.

So far it has supplied 6 GW+Modules Globally and has exported its products to 68 countries. It has commissioned 50+ MW under 400+ Roof Top Mounted Projects, 1.9+ GWGround Mounted modules in INDIA andInternational Locations under 50+ projects. It has also completed commissioning of 270+ MW under 08 Projects in GroundMounted under IPP & SolarPark scheme and 1.2+ MW under 2 Floating SolarProjects. Company has also commissioned 600+KW of NewTechnology of Battery Storage in 1 project and 50+ MW energy under 10000+ Franchisee Projects.

Key Projects:

Ground Mounted Solar Panels:

1. Solar Panel Hero Future Energies - 44MW
2. Waaneep power(Andhra pradesh) - 50MW
3. Song Giang Solar Power , Vietnam - 49.5 MW
4. Roha Dyechem - 25MW
5. MSL (Maharashtra Seamless Limited)-14MW
6. 295.68MWp atKurnool, Andhra Pradesh (ongoing)
7. 210 MWp project atKhandwa (ongoing)
8. 154MWp project atThoothukudi, Tamil Nadu (ongoing)
9. 6.5MWp project atRaigarh, Chhattisgarh (ongoing)
10. 70MWp project at Jalna (ongoing)
11. 150MWp project atRatlam, Madhya Pradesh (ongoing)
12. 78MWp at Tamnar,Chhattisgarh (ongoing)

Rooftop Solar Panels:

1. 6.62MWp Rooftop project at Shri GodijiPlant, Chikhli (ongoing)

Floating Solar Panels:

1. NLC 200kW
2. NTPC, Kawas 1000KWP

Major EPC Projects

1. 412 MWp at Bikaner, Rajasthan
2. 980 MWp at Kurnool, Andhra Pradesh
3. 100 MWp at Jamnagar, Gujarat

Company’s order book for unexecuted projects stands at 2,365 MWp and it has successfully executed orders of 704 MWp in Fy24. Its clientele includes Private and Public sector clients on Domestic front and many other Global clients.

Clientele:

Figure 1: Source Company Presentation

Fundamentals:

CMP	Rs. 2124
52 - week high	Rs.3,038
52 – week low	Rs.193
Dividend % (consolidated)	0.01 %
ROE	93.3 %
BV(Rs.)	22.3
Sales (Rs.)	876 cr.
Debt to Equity	0.18
P/E ratio	151
EPS (consolidated)	14.2
P/B ratio	96.0
Market Cap	22,288Cr.
Face value	Rs.2
PEG Ratio	1.03

 

 

Financial Results:

Company has reported robust financial performance in FY24 with Revenue of Rs. 876.44Crs. marking 149.73% jump from previous year, PAT of Rs. 148.04Crs. marking 167.55% jump and EBITDA of Rs. 207.18Crs. marking +147.40% jump compared to same period on Y-o-Y basis.

On quarterly basis company has reported Revenue of 273.25 Crs. in Q4Fy24 marking 344.38% up from 61.49 Crs. in Q3Fy23. Its PAT & PAT Margin also increased from 12.28 Crs. and 19.96% respectively in Q3Fy23 to 54.18 Rs. and 19.83% respectively in Q4Fy24 showcasing 341.4% jump in PAT. Company EBITDA reached Rs. 75.30 Crs. in Q4Fy24 from 22.29% in Q3Fy23 which is 237.38% upside.

Key Updates:

1. Waaree Energies has launched solar modules to support energy requirements of services like refrigeration in electric vehicles. These modules are indigenously designed to be portable, flexible, lighter, durable and more efficient, making them ideal for vehicles and also increases efficiency by 10-25%.
2. Company has also won a contract to set up 1 MWp Green hydrogen Plant integrated with ecosystem on BOB basis.
3. The company has set up 14 solar power centres in West Bengal. The main objective of these centres spread over 14 districts is to make inroads into solar projects segment.The company is also a leader in the Engineering, Procurement and Construction (EPC) and rooftop segment. It was an EPC player in 15 MW power project at the airport, 3.3 MW at the Metro, 8.89 MW with leading steel industry, 830KW leading FMCG and 800 KW with WBSEDCL.
4. The company has recently launched India’s first 400 Wp cut cell module series called Super 400 which is touted to be the future of rooftop solar. The Super 400 series is a Mono PERC Module, with a 400Wp output and the Super 400 Pro Module, which is a Bifacial module, with up to 30% higher output. In case of partial shadow, the Super 400 series provide enhanced power output, i.e. over 50% higher than regular best-in-class modules. Manufactured at Waaree’s 1.5 GW module manufacturing plants in Gujarat, the module has a life of minimum 25 years, and comes with Waaree Energies’ acclaimed maintenance service.
5. On Global front, Companyhas bagged a contract to set up 60-megawatt (MW) ground mounted solar project in Vietnam.The project, which is being developed in association with a leading utility scale provider, on turnkey basis, will marks Waaree Energies’ expansion to South East Asia market.
6. The company recently entered into an agreement with Mahindra Susten a renewable independent power producer (“IPP”) player for the provision of 280 MW of solar modules. Waaree Energies Limited will supply 280 MW of AHNAY Series, Bi-55 545Wp modules to Mahindra Susten and delivery is expected during third quarter of Fiscal 2025.
7. Company has recently the obtained from the Bureau of Indian Standards (BIS) certification for Topcon Modules, specifically glass to back sheet, with a of up to 625Wp. The certification falls under the category of “Crystalline Silicon Terrestrial Photovoltaic (PV) Modules (Si wafer based). This certification positions the Company at the forefront of innovation in manufacturing of solar power solutions. With an adherence to stringent quality standards, the Company aims to deliver highly reliable solar solutions incorporating latest available technologies.
8. The company has recently commissioned 87.5MW/122.5 MWp out of 150 MW/210 MWp EPC solar power project for UPC Renewable Energy Pvt Ltd.’s subsidiary M/s. Masaya Solar Energy Pvt. Ltd. in the Khandwa district of Madhya Pradesh.The solar power project is spread across 651 acres of undulated land terrain, with power being evacuated at a 220 kV voltage level and connected at PGCIL 400 kV/220 kV SS through the ISTS (inter-state transmission system) network. A total of 5,08,072 SPV modules, ranging from 335 Wp Polycrystalline to 540 Wp Monocrystalline, with an inverter capacity of 3.125 MW were installed.
9. The company has also developed 39.98 MWp solar power generating assets under IPP contract.
10. The company hasalso introduced high performance WSM-345 Monocrystalline solar modules which uses high efficiency monocrystalline cells. This Module delivers an Industry leading 17.8% efficiency with positive power tolerance. WSM-345 modules have lower LID (Light Induced Degradation) and offers higher return on investment with more watts-per-module. Its best-in-class efficiency ensures savings on balance-of-system and the space required for installation. These module have undergone rigorous in-house tests, exceeding International standards to withstand various operating conditions.
11. Company has also received a letter of award (LOA) to set up a 180 MW DC solar power plant in the Indian state of Tamil Nadu.
12. It has also received LOAfor setting up a 140 MW DC solar power plant in the state of Gujarat.
13. The company has commissioned 2.5 MW ‘group captive’ solar project for Raymond. The open access plant was set up on turnkey engineering, procurement and construction basis with the fashion retailer holding 26% ownership of the plant.
14. The company recently entered into a strategic partnership with 4CSolar, a proven technology solutions provider based in California specializing in floating solar arrays. 4CSolar has developed patent-protected technologies to enable highly reliable, low-cost and eco-friendly installations of floating solar power plants on lakes, dams, and near-shore seawater.  This product is now available for demonstration and sale through SunMount Engineering Pvt. Ltd., a wholly-owned subsidiary of Waaree Energies.
15. The Honourable Prime Minister of India, Shri Narendra Modi recenetlu inaugurated a number of Solar Power Plants in Surat, with a collective capacity of 1 MW, by Waaree Energies. The Solar power plants are located at various locations in the city, which include three water distribution plants and 18 municipal schools, and cumulatively account for 1 MW of energy generation. With the latest addition of the plants, the Surat Municipal Corporation has become the first Municipal Corporation in the country which is not dependent on any electricity company for water distribution.
16. In past company has also launched its first plug and play solar park in India, the 150 acre ‘Sunbless Solar Park’ at Murtizapur, near Akola, Maharashtra which has a capacity of up to 30 MW. This park provides land and evacuation facility to the nearest 132/33 kV GSS via double circuit transmission line. It offers facilities such as approach road, fencing, water supply, common infrastructure support and resources. The area receives a GHI of 1881.8 kWh/m2. The park location offers excellent connectivity by road/ rail and provides great economies of scale resulting in reduced total cost of ownership.

Company has generated 994.67 % in 1 year and 346.30% in last 3 years, compared to Benchmark indices in same period.

Ministry of New and Renewable Energy targets 500 GW non-fossil-based electricity generation by 2030, as per the Prime Minister's COP26 announcement, with an added installation of 13.5 GW renewable energy capacity in 2023, corresponding to an investment of around Rs. 74,000 crores (US$ 8.90 billion).In the Interim Budget for 2024-2025, The fiscal allocation for solar power grid infrastructure development surged to Rs. 8,500 Crore (US$ 1.02 billion), a significant rise from the previous year’s Rs. 4,970 Crore (US$ 0.60 billion).

The Central Electricity Authority estimates India’s power requirement to grow to reach 817 GW by 2030 and most of the demand is expected to come from real estate and transport sectors.India's installed renewable energy capacity is expected to increase to about 170 GW by March 2025 from the level of 136.57 GW as of December 2023, according to research agency ICRA.The installed solar energy capacity of India has increased by 30 times in the last 9 years and stands at 82.63 GW as of Apr 2024 and it is estimated to be 748 GWp by National Institute of Solar Energy (NISE).

Government of India has been implementing the Production Linked Incentive (PLI) Scheme for National Programme on High Efficiency Solar PV Modules, for achieving manufacturing capacity of Giga Watt (GW) scale in High Efficiency Solar PV modules with outlay of Rs. 24,000 crore. This Scheme has provision for Production Linked Incentive (PLI) to the selected solar PV module manufacturers for five years post commissioning, on manufacture and sale of High Efficiency Solar PV modules and under this scheme company has received PLI amount of Rs. 1923.24 Crs. in Trance II. Further, India and Saudi Arabia has also signed an MoU for green hydrogen supply chain and power grid interconnection during MENA Climate Week in Riyadh. The agreement aims to foster cooperation in renewable energy, electrical interconnection, and green hydrogen production. Even Rs. 17,490 crores (US$ 2.10 billion) were allocated for the Green Hydrogen Mission and the Strategic Interventions for Green Hydrogen Transition (SIGHT) Program by GOI.

Looking towards the sea of opportunities in Solar sector for the company and company being the leading player in Solar EPC, one can expect many more orders coming for the company paving way for higher revenue and PAT in upcoming years. Considering company’s proven financial track record, outstanding order book positions, PLI scheme benefits, GOI initiatives, growing demand for solar modules and related products and bright future of Solar Sector in India in upcoming years, investors can invest in this company for long term period with buy in dips strategy.

 

ANALYZED BY-HET ZAVERI

MAIL - info@smartinvestment.in

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