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New Delhi: Domestic brokerage firm Motilal Oswal Financial Services (MOFSL) has started coverage on solar cell and module manufacturer Waaree Energies Limited (WEL). Based on the company's 'unmatched scale' and its position as a leading company in the Indian cell/module manufacturing sector, the brokerage firm seems to be bullish. The firm says that this stock will jump more than 18 percent in the coming time. The stock, which is popular amongst the retail investors, was trading at Rs 3,377.50 per equity share at the time of writing this article on November 6, 2025.
MOFSL research analysts Abhishek Nigam and Preksha Daga believe that with an operational cell/module capacity of 5.4 GW/16.1 GW in India, Waaree Energies is ahead of domestic competitors and its capacity market share in India is 21.6 percent/13.3 percent.
According to the firm, Waaree Energies has been valued through the Sum-of-the-Parts (SoTP) methodology, which has yielded a target price of Rs 4,000 per share. Also, a buy rating has been given.
Waaree Energies has responded swiftly to regulatory and macroeconomic changes. As evidenced by its move to establish domestic cell capacity ahead of competitors in response to the government's Approved List of Cell Manufacturers (ALCM) and its plans to increase US capacity from 2.6 GW to 4.2 GW (by the fourth quarter of FY 2026) in response to the changing tariff scenario, analysts wrote in their note.
Focusing on the breadth of Waaree Energies, the analysts said that the company's presence in the solar value chain, which includes EPC, BESS, inverters and green hydrogen, makes it an integrated company and makes it suitable for continuous growth.
Talking about domestic opportunities, he said that Waaree Energies encapsulates the story of India's module, where the national installed solar capacity will increase from 100 GW in the first quarter of FY26 to 160 GW by FY28.
Strong growth in utility-level bids (from 20 GW in FY23 to 69 GW in FY24) and increasing demand from PM Kusum/Suryaghar Yojna will accelerate the growth of major domestic employment modules business in FY26-27.
The Central Government has shown strong willingness to make India's green energy production indigenous through regulations that make domestically manufactured modules/cells mandatory.
The domestic module business has been valued at 15 times that of EBITTA before FY28, which indicates a premium compared to global competitors. The US module business has been valued at 12 times that of EBITTA before FY28, which is in line with global competitors.
The new business segment, of which more than 74 percent is contributed by EPC and O&M businesses, according to analysts, has been valued at 11 times EBITTA prior to FY28, which is in line with the valuation of domestic competitors. The sum of these segment valuations (adjustments for net debt) reflects the broad value of the diversified operational value of Waaree Energies.
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