Waaree Energies IPO: The good and the bad

Published: 21st Oct 2024

By: Value Research

The company

Waaree Energies is India's largest solar PV module manufacturer, with an installed capacity of 12 GW as of June 30, 2024. The company operates 5 manufacturing facilities across India. It occupies over 21 per cent of India's photovoltaic module market share.

Total IPO size (Rs cr) 4321   Offer for sale (Rs cr) 721   Fresh issue (Rs cr) 3600   Price band (Rs) 1427   -1503   Subscription dates October   21-23, 2024   Purpose of issue Offer   for sale, financing cost for Odisha facility

IPO details

43179   Net worth (Rs cr) 8072   Promoter holding (%) 64   Price-to-earnings ratio (P/E) 33   Price-to-book ratio (P/B) 5M-cap (Rs cr)

Post-IPO

2Y CAGR (%) TTM FY24 FY23 FY22   Revenue 100 11478 11397 6751 2854   EBIT 338 1364 1298 671 68   PAT 300 1295 1237 483 76   Net worth 209 4472 4075 1825 427   Total debt 23 513 553 320 363Key financials (Rs cr)

Financial history

Ratios 3Y average (%) TTM FY24 FY23 FY22   ROE (%) 34 35.5 41.8 42.6 17.7   ROCE (%) 30.3 33.7 37.7 44.9 8.4   EBIT margin (%) 7.9 11.9 11.4 9.9 2.4   Debt-to-equity 0.1 0.1 0.2 0.8

Key ratios

The good

Waaree is enhancing its capabilities by commencing in-house solar cell production at its Chikhli facility. It is also setting up a fully integrated 6 GW facility for ingots, wafers, solar cells, and solar PV modules.

The good

As the largest player in solar PV manufacturing, Waaree boasts impressive EBIT margins of 8 per cent. This success is partly attributed to their focus on exports, which increased to around 58 per cent in FY24.

The bad

Waaree operates in a competitive industry with many other large players. Plus, there are pricing pressures and dependency on government policies. Click the link below to get more information about Waaree Energies.