Nuvama recommends 'buy' for Waaree Energies shares

Nuvama Institutional Equities has started recommending Waaree Energies shares, giving it a 'buy' rating. The firm believes that the company has a strong future ahead as it aims to expand into new energy markets. They set a target price of ₹2,805 per share, suggesting a 25% increase from the current price of ₹2,250.55. Waaree Energies is not only focused on solar energy but is also diversifying into areas like green hydrogen and advanced technologies. This strategy aims to boost its capacity and create new growth opportunities. The company is taking steps to become a comprehensive player in the renewable energy sector. Nuvama projects that Waaree's earnings before interest, taxes, depreciation, and amortization (EBITDA) will grow at a rate of 54% per year from 2024 to 2027. They attribute this growth to the expansion of the company's production capabilities and the effective use of its solar modules. They also expect that government support will help improve profit margins. However, Nuvama warns that new industries come with unpredictable risks. These include changes in import tariffs and potential oversupply in the market. While their conservative estimates suggest a long-term annual growth rate of 17%, a more optimistic outlook could raise the target price to ₹3,844 per share. Investors are encouraged to consult financial experts before making any investment decisions.