Multibagger Waaree Renewable stock snaps 3-day losing streak, rises 4% on solar EPC order win

Indian stock market: Waaree Renewable Technologies, the solar EPC arm of Waaree Group, saw its shares surge 4% to ₹4,650 in today's intraday trading on March 12, after the company received an order for EPC works for a solar power project. Today's rise in the stock also snaps its three-day losing streak. 

A three-member consortium, which includes Waaree Renewable Technologies Ltd., has secured a solar power project worth ₹740.06 crore. Under the project, the consortium will develop a plant with a total capacity of 125 megawatts alternating current (MWAC). The project is expected to be completed within 18 months from the date of signing the contract, according to the company's regulatory filing. 

Earlier in mid-February, the company secured a Letter of Award (LOA) for EPC work on a 40 MWh battery storage system, awarded by Continuum Green Energy Limited. The project, worth ₹40 crore, is expected to be completed in FY 2025-26.

The company is primarily engaged in renewable energy solutions, with a specific focus on solar power. It operates as a solar engineering, procurement, and construction (EPC) company and also functions as a solar developer, financing, constructing, owning, and operating solar projects.

Stock down 73% in 10 months, still a multibagger

The stock has lost 73% of its value in the last 10 months but is still up by 36,449% over the last five years. On the fundamental front, the company reported a 20% decline in its consolidated net profit to ₹64.46 crore in Q3 FY25 amid a sharp jump in operating expenses.

Revenue for 9MFY25 stood at ₹1,121.17 crore, compared to ₹603.19 crore in the same period of 9MFY24, representing 85.87% YoY growth. Its EPC segment delivered an exceptional performance, achieving customer revenue of ₹1,093.99 crore for a volume of 1,024.92 MWp, compared to ₹580.80 crore for a volume of 473.44 MWp.

Regarding the company's order book, its unexecuted order book stands at 3.4 GWp at the end of Q3FY25, expected to be executed within 9-15 months. Meanwhile, the bidding pipeline remains robust at 23.37 GWp, as per the company's Q3 earnings' report.

Looking ahead, the company plans to foray into EPC for the data center industry in India and globally. India's renewable energy sector continues to play a pivotal role in the nation's pursuit of sustainable growth and energy security.

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