Waaree RTL - waiting for Sun to shine again

Rise & Fall of Waaree RTL's share price over the last 2 years

WAAREE RTL's share price saw a euphoric rise in H1-2024 when it rallied from <₹400 to ₹3000 level. Valuations ran way ahead of expected business growth.

Over last 2 years, Revenues & Profits have gone 4x, growing at humanly possible speed for this business. And the Solar EPC Order Book & flow of fresh orders suggests that growth will be strong for another 2 or 3 years before slowing down.

Coming back to valuations, at < ₹1000 share price level & MCap of ~ ₹10K crs, this business is quite attractive from investment perspective. TTM PAT was ₹229 cr & it could very well go 3x to 4x again in the next 2 years.

Considering the factors, I think the share price could retouch the highs of ₹3000 level sometime in the next 2 to 3 years.

An important point to note is that Promoter holding (Waaree Energies) continues to be over 74% & they did not sell anything even when the share price had rallied to ₹3000 level last year. Since the floating stock is low, the rise & fall in the share price is generally very sharp.

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