Company Overview:
Waaree Energies Ltd. is the largest manufacturer and exporter of solar PV modules in India, with an aggregate installed capacity of 13.3 GW. The company operates 5 manufacturing facilities in India spread across 143+ acres of land. The solar PV modules manufactured by Waaree Energies are made using advanced technologies such as multicrystalline cell technology, monocrystalline cell technology and Tunnel Oxide Passivated Contact (TopCon), which helps to reduce energy loss and enhances overall efficiency.
Key Highlights:
1. Largest domestic Solar PV Module manufacturer: Waaree Energies is India’s largest solar PV module manufacturer with an installed capacity of 13.3 GW (1.3 GW capacity commenced at Indosolar facility post Jun’24), up from 4 GW in FY22. The company is well positioned to capture the growing demand for solar energy products domestically as well as internationally through its extensive experience, coupled with deep market penetration and significant capex.
2. Diversified Order book: The company’s strong leadership position allows it to offer competitive pricing for its products, making them accessible to a large and diverse customer base. Waaree Energies has built relationships with a wide range of customers globally and in India. Additionally, the company has a substantial order book of solar PV modules, including 16.66 GW for domestic and export orders, franchisee orders, and 3.75 GW of orders for its subsidiary, Waaree Solar Americas Inc., located in the United States.
3. Backward Integration through aggressive capacity expansions: The company currently has a 13.3 GW solar PV module capacity and plans to set up a 5.4 GW solar cell manufacturing facility by FY25. Additionally, there are plans for a fully-integrated 6 GW manufacturing facility to start operations by FY27. The company is also setting up a 1.6 GW plant at its US facility in FY25, with potential expansions to 3 GW by FY26 and 5 GW by FY27, depending on market conditions.
4. Advanced technological manufacturing facilities: The company operates five manufacturing facilities in Gujarat (Surat, Tumb, Nandigram, Chikhli) and Uttar Pradesh (Noida). These facilities are equipped with advanced technology such as Mono PERC and TopCon for higher efficiency. The Chikhli facility can manufacture solar PV modules based on the latest technologies for higher efficiency large-sized PV silicon wafer. The recently commissioned Indosolar Facility also has this capability
Valuation: At the upper price band of Rs 1,503, Waaree Energies is valued at FY24 P/E multiple of 33.9x based on its post issue capital. The company is largest manufacturer of solar PV modules in India, with an aggregate installed capacity of 13.3 GW. Going forward, the company will set up a 5.4 GW solar cell manufacturing plant (likely to commence production by FY25), a 6 GW fully-integrated manufacturing facility (likely to commence production by FY27) and a 1.6 GW plant in USA (further scalable up to 5 GW by FY27) to capitalize on the strong industry growth. Historically, Waaree Energies recorded a CAGR of 99.8%/276.7%/300.0% in Revenue/EBITDA/PAT respectively during FY22-FY24 period, showcasing the company’s robust financial performance.
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