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As Waaree Energies makes waves with its high-profile IPO, its lesser-known subsidiary, Waaree Renewables Technologies, has already proved its mettle on the Street, posting jaw-dropping returns over the past few years.Waaree Renewables, an SME stock listed on the BSE SME platform, soared over 66,000% in the last five years. In the last one year period, the shares have jumped over 500%.Operating under Waaree Energies looking after the solar EPC sector, Waaree Renewables is at the crossroads of India’s ambitious renewable energy goals, specifically in solar energy. Established in 1999, it focuses on power generation through renewable sources, primarily solar power.The company has a robust order book of Rs 3,200 crore with 2.3 gigawatt (GW) unexecuted pipeline. Its portfolio covers various types of solar installations, such as ground-mounted solar, rooftop solar, and floating solar systems.The stunning rally in Waaree Renewables coincided with the robust financial performance of the company in the last few years. A loss making company in FY21, the company quickly scripted a turnaround by posting profits in the next three fiscal years. <iframe title="Waaree Energies A Clear Winner Among Peers" aria-label="Table" id="datawrapper-chart-hIZ15" src="https://et-infographics.indiatimes.com/graphs/hIZ15/2/" scrolling="no" frameborder="0" style="width: 0; min-width: 100% !important; border: none;" height="319" data-external="1"></iframe><script type="text/javascript">!function(){"use strict";window.addEventListener("message",(function(a){if(void 0!==a.data["datawrapper-height"]){var e=document.querySelectorAll("iframe");for(var t in a.data["datawrapper-height"])for(var r=0;r<e.length;r++)if(e[r].contentWindow===a.source){var i=a.data["datawrapper-height"][t]+"px";e[r].style.height=i}}}))}();</script>During FY22-24, the net profit grew at a compound annual growth rate (CAGR) of 308% to Rs 148 crore. Revenues during the same period clocked a CAGR growth of 144%. The bottom line improved further in the first quarter of FY25 with a three-fold rise in profit after tax.Given the rise to the top, valuations caught up, resulting in the decline of share price of Waaree Renewables in the last six months, falling around 36%. However, analysts are positive on the stock in the near term."Waaree Renewables has touched its trendline support at 1495, indicating signs of a potential reversal. With strong buying seen at lower levels, the stock has the potential to reach 2000 and 2050 in the near term. However, a strict stop loss of 1450 should be maintained to manage downside risk," said Riyank Arora, Technical Analyst at Mehta Equities.Will parent Waaree Energies replicate the success story?As a market leader in solar PV module manufacturing, Waaree Energies generated a significant buzz in the market ever since it announced the launch of IPO. The issue, which received a subscription of 76 times, bagged highest applications (97 lakh) for any IPO in India's primary market history.If grey market trends are to be believed, Waaree Energies is all set to deliver multibagger returns to investors on listing. Not just the listing day blitz, analysts are extremely bullish on the long term growth story with solar energy emerging as a key global theme in the transition to renewable energy.Waaree Energies is best placed to capitalize on the growing opportunity given its leading market share and strong financials. The company is also India's largest exporter of solar modules, commanding a 44% share of the domestic export market in this sector.The company boasts an order book of 13.3 gW, driven by a 6x increase in its capacity from 2 gW in FY21. In addition to this, part of the IPO funds will be used for setting up an additional 6 gW facility in Odisha, which will further its plans to expand capacity to 20.9 gW by FY27."The domestic market offers significant opportunities for WEL, as India actively promotes locally manufactured modules over cheaper imports from China. In response, several domestic players are expanding their production capacity to capture a share of this growing market. Waaree is at the forefront of this expansion," said Monarch Networth Capital.In a sector characterized by huge capex requirements, Waaree Energies has been a standout player (even among global players) with low debt levels, but at the same time, delivering the best financial performance among peers.The company's debt-to-equity at 0.08x is significantly lower to Vikram Solar D/E at 1.8x, Websol Energy at 1.7x and Premier Energies at 2.3x as of FY24.Waaree delivered a three-year revenue CAGR of 80% between FY21-24, with an EBITDA CAGR growth of 154% in the same period. In comparison, Vikram Solar and Premier Energy had a revenue CAGR of 16% and 65%, respectively. The company also leads the global players Trina Solar, JA Solar and Canadian Solar in both revenue and EBITDA growth rates."Waaree is approximately twice the size of its nearest competitor. With its ambitious expansion plans, both in India and the US, along with the goal of achieving full integration across its operations, the company is well-positioned for sustained growth," said CanaraBank Securities.However, there are some risks that could hinder Waaree's growth story. One of the major concerns is related to export seizures in the US due to labour violations, which could affect the company's supply chain. It also faces the risk of fluctuating raw material tariffs as the company is heavily dependent on solar cell imports from China and other South East Asia jurisdictions.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

NEW DELHI: Top policymakers, thought leaders and corporate bosses from across the country will come together at the inaugural edition of The Economic Times India Ascends summit on November 13 to deliberate on the country’s robust economic performance and the path ahead. Minister for petroleum and natural gas Hardeep Singh Puri, chief economic adviser V Anantha Nageswaran, Standard Chartered Bank CEO for India and South Asia Zarin Daruwala, MercedesBenz India MD and CEO Santosh Iyer, Microsoft India MD Irina Ghose and CoRover CEO Ankush Sabharwal are among those who will reflect on India’s rise as a bright spot in global economy while the rest of the world stumbles.Annual Exchange of IdeasThe latest International Monetary Fund estimates show India will grow 7% this fiscal even as the global economy continues to face multiple challenges.India Ascends is proposed as a platform to enable action-oriented discussions and track India's aspirational growth as it moves forward towards the goal of becoming a developed country by 2047, as set by Prime Minister Narendra Modi. 114518455The summit hopes to emerge as a platform for the annual exchange of ideas by key stakeholders to take stock of the year gone by and prepare for growth in the near future.Stay tuned for more updates on what will be a stimulating exchange of ideas and conversations.

Mumbai: Global investment bank Goldman Sachs has downgraded India's stock ratings to 'neutral' from 'overweight' citing slowing economic growth and weak corporate earnings. High valuations and a less supportive backdrop could limit the near-term upside for Indian stocks, the report said. Goldman is the first foreign brokerage to downgrade Indian equities this year.Goldman Sachs has also lowered its 12-month Nifty target from 27,500 to 27,000, implying a 10.5% upside from Tuesday's close."While we believe the structural positive case for India remains intact, economic growth is cyclically slowing down across many pockets. Worsening earnings sentiment, an accelerating pace of earnings-per-share cuts and a weak start to the September-quarter results season indicate an impact on profits," the report said.The downgrade comes amid continuous selling by foreign portfolio investors (FPIs), who have offloaded Indian stocks for 17 consecutive days. So far this month, FPIs have sold shares worth ₹89,200 crore. The MSCI India index declined by 6.38% in October, compared to a 2.45% fall in the MSCI Emerging Market index and a 0.22% gain in the MSCI World index."A large 'price correction' is less likely given support from domestic flows, but markets could 'time correct' over the next three to six months," said the report.Domestic institutional investors have pumped in more than ₹89,300 crore so far this month and a record ₹4.3 lakh crore in stocks during the calendar year.The benchmark Nifty currently trades at 20 times its 12-month forward earnings, above its five-year average of 19.4 times, according to Bloomberg.According to Goldman Sachs, Nifty is likely to correct to around 24,500 in three months and then gain 3% to 25,500 in the following six months.The financial services giant remains overweight on automobiles, telecom, and insurance and has upgraded the realty and internet sectors to 'overweight'. The brokerage has downgraded cyclicals such as industrials, cement, chemicals, and financials.In November last year, Goldman Sachs upgraded Indian shares to 'overweight' from 'market weight', citing strong economic growth prospects, steady domestic mutual fund inflows and a potential supply chain shift from China.The firm then said that Indian markets would continue to gain in 2024, supported by steady earnings growth and macroeconomic stability in what would otherwise be a "tricky" period in the Asia Pacific region.Last month global research firm CLSA said India is the most expensive market in the world on absolute valuation plus relative to history on price-to-earnings multiples.

Mumbai: A potential slowdown in the core sectors of the economy and a win in the protracted and attritional war over inflation were the arguments incoming member of the monetary policy committee (MPC), Nagesh Kumar, used to seek a rate cut during the early October review, where the six-member panel voted 5:1 to maintain status quo despite an unexpectedly oversized reduction in US policy rates mid-September. Other MPC members of the Reserve Bank of India (RBI) expressed concerns over the current global and domestic economic uncertainty, underscoring the need to remain vigilant about food inflation and sustained growth. This made the case for keeping the repo rate unchanged, showed the minutes of the last MPC review published Wednesday by the central bank."Given that inflationary expectations have been successfully anchored, and industrial demand in both domestic as well as export markets is flagging, a rate cut could help to revive demand and help boost private investment," said Nagesh Kumar, director of the Institute for Studies in Industrial Development, defending his first vote as MPC member. "I think that it is an opportune moment for RBI to start the process of normalizing the monetary policy," said Kumar, the lone member to seek a cut in rates.Nevertheless, among those who voted for a pause, deputy governor Michael Patra said that the second-quarter slowdown could be temporary, attributing it to "idiosyncratic factors like unusually heavy rainfall in the retreat of the southwest monsoon and pitrupaksha".In the October 6-9 policy statement, five out of the six members voted to keep the repo rate unchanged at 6.50% for the 10th consecutive bi-monthly meeting of the MPC. All six members unanimously voted for a change in stance to 'neutral' from 'withdrawal of accommodation'."The change in stance to neutral provides space to watch out for the uncertainties on the horizon - ranging from heightened geopolitical tensions, volatile commodity prices and risks of adverse weather in food inflation," said RBI Governor Shaktikanta Das. "At this stage of the economic cycle, we cannot risk another bout of inflation. The best approach now would be to remain flexible and wait for more evidence of inflation aligning durably with the target," he said.The committee is taking a gradual wait-and-assess approach, as reducing restraint too quickly may negate the progress made on disinflation. Enterprises also expect demand conditions to pick up for manufacturers, services and infrastructure.With the consumer price index (CPI) expected to be higher, the confidence of CPI coming to the target of 4% in the near future comes from the household inflation expectations survey which has been lower in the latest print, according to the minutes.