The significant surge in Waaree Energies’ stock price on April 23, 2025, can be attributed to a combination of factors:
- The recent trend of positive market sentiment continued as Indian equity indices, including the Sensex and Nifty rallied for the seventh straight day. This uptrend of a broader market likely helped the stock’s performance. citeturn0news0
- Imminent Q4 Results: Expectations of solid Q4 financial performance could have buoyed investor sentiments.
- Boost from Renewable Energy Sector: The renewable energy sector has witnessed increasing investor interest, and Waaree Energies, a key player, may be riding this wave.
2. Fundamental Analysis
- Revenue & Profitability Waaree Energies has consistently improved revenue and profitability, thanks to its diverse offerings in the solar energy sector.
- Debt Levels: The firm has a generally manageable debt-equity ratio and practice of good financial management
- Return Ratios: Return on Equity (ROE) and Return on Capital Employed (ROCE) are also alluring and showcase which a sturdy nurture in the usage of capital.
- Valuation: P/E ratio is reasonable compared to the rest of the industry, indicating potential value appreciation.
3. Technical Analysis
- The price has sped higher, piercing above key checks.
- Fundamental Analysis: The 50-day and 200-day moving averages have shown a bullish crossover, which is considered a healthy technical signal.
- Relative Strength Index (RSI): RSI levels are near neutral territory, indicating no immediate overbought or oversold condition.
- Support & Resistance: Immediate support lies at ₹2,100 and resistance at ₹2,400.
4. Value Analysis
- Valuation Metrics: DCF analyses of intrinsic value suggest the stock may be undervalued compared to current market price.
- Margin of Safety: Based on the company’s growth prospects and position in the industry, there is enough margin of safety for investors looking for longer-term investment.
5. Promoter’s Investment Activity
- Holding Percentage: As of December 2024, promoters hold 64.3% of the company’s shares, indicating strong insider confidence. citeturn0search3
- Pledge Status: There is no significant pledge of shares by promoters, suggesting no immediate liquidity concerns.
6. FII and DII Activities
- Foreign Institutional Investors (FII): FIIs hold 1.4% of the company, a slight decrease from the previous quarter.
- Domestic Institutional Investors (DII): DIIs hold 2.7%, also showing a minor decline.
- Mutual Funds: Significant holding includes Motilal Oswal Manufacturing Fund (3.20%) and Motilal Oswal Focused Fund (3.12%). citeturn0search2
7. Broker’s View
- Brokerage House : Waaree Energies has been assigned a strong buy recommendation by major brokerages due to its leading position and expansion potential in the renewable energy industry.
- Fundamentals and Technical: Consensus target prices indicates potential upside.
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