I think that this is the best time to flourish if they can’t do so in last 20 years. But intent is required. I am keeping eye on their quarterly results.

We’ve been holding this stock since my father purchased it back in 2009. Over the years, it remained in my mom’s account but is now accessible through the same stock application I use for easier management. At the time, only a small quantity was purchased at an average price of ₹5.50, and the stock remained stagnant until 2021.

Fast forward to today, we’re sitting on a staggering 15,917% return. This year, we sold 64% of the shares, leaving just around 125 shares. These remaining shares hold sentimental value, so I plan to keep them as a legacy. Whether the stock is overvalued or not is secondary to me—any 10-30% drawdown wouldn’t matter much at this stage.

With Calcom, please keep low expectations. Although the company is quite old and I know them from last 20 years,since the time they were making CRT televisions but the intent and drive is lacking. It would be great to see them do well but as an investor, please do not go overboard and manage risk with position size. They can never be the next DIXON, because Dixon has the first mover advantage and deep pockets of the erstwhile WESTON TV group.

Concall Notes – Nov 2024

Company Overview:

Waaree Energies Limited has transitioned from an instrumentation company to a solar company since 2007.
The company has a robust history of two decades in the solar industry.
Currently holds six gigawatts of Production-Linked Incentive (PLI) capacity, operational by 2027.
Manufacturing capacity includes 5.4 gigawatts of cell manufacturing nearing commercial production.

Manufacturing Facilities:

U.S. factory nearing completion; expected to begin commercial production soon.
Chikhli, Gujarat facility has one of the largest concentrations of solar PV module manufacturing in India.
370+ stores set up by franchisees and channel partners across India.

Market Dynamics:

Solar energy is the lowest cost energy globally, outperforming coal, oil, gas, and nuclear energy.
Strong demand drivers include India’s target of 500 gigawatts of renewable energy by 2030, translating to 60-70 gigawatts of solar power annually.
Diversification of supply chains is a key trend, particularly in the U.S. and India, which are moving away from over-reliance on China.

Order Book:

Current order book stands at 20 gigawatts, with a diversified customer base including exports, large customers, and retail.
Breakdown of the order book: 27.5% domestic and 72.5% overseas, indicating a strong international presence.
Retail segment is currently at 23% of overall business, with significant growth potential.

Production Insights:

H1 FY25 production reached 3.3 gigawatts, compared to 4.8 gigawatts for the entire previous financial year.
Anticipated production from the new 5.4 gigawatt cell facility to start in December 2024, with plans for full ramp-up by March 2025.

Financial Performance:

Q2 FY25 consolidated revenue: INR 36,634.63 million (up 2.95% YoY).
Q2 FY25 EBITDA: INR 6,139.37 million (up 14% YoY), with a margin of 16.76%.
H1 FY25 profit after tax: INR 7,767.84 million (up 17.98% YoY).

New Developments:

Investing INR 600 crores for renewable energy infrastructure and bidding.
Plans for electrolyser manufacturing plants to support hydrogen production.
Exploring battery energy storage systems, with a projected requirement of 70 gigawatt hours by 2030 in India.

Challenges and Headwinds:

Management acknowledges that the industry is not solely driven by profits protected through tariffs; they emphasize a need for sustainable business models.
The U.S. market dynamics and potential policy changes (IRA) are under close observation, with management committed to maintaining a presence regardless of regulatory shifts.

Strategic Outlook:

The company emphasizes that solar energy’s cost advantages will drive future growth in the U.S. market.
Plans for additional capacity in the U.S. (3.4 gigawatts of module capacity and 5 gigawatts of cell capacity) are under evaluation, depending on policy developments.
Management is optimistic about the long-term growth trajectory, highlighting a multi-decadal growth story for solar energy.