Waaree Energies IPO Review

Waaree Energies Limited ("WEL”) is India’s largest manufacturer of solar PV modules with the largest aggregate installed capacity of 12 GW, as of June 30. WEL commenced operations in 2007 focusing on solar PV module manufacturing with an aim to provide quality, cost-effective sustainable energy solutions across markets, and aid in reducing carbon foot-print paving the way for sustainable energy thereby improving quality of life. 

The Chairman, Managing Director and one of the Promoters, Mr. Hitesh Chimanlal Doshi has over 23 years of experience in the engineering industry. Mr. Viren Chimanlal Doshi, one of the Promoters and Whole-time Director, has over 15 years of experience in the engineering industry. Mr. Hitesh Pranjivan Mehta, the Whole-time Director, is a qualified chartered accountant with more over 24 years of experience in the field of engineering, solar and oil industries.

Financially, Revenue in Fiscal 2023, Fiscal 2022 and Fiscal 2021 was ₹68,603.64 Million, ₹29,458.51 Million and ₹19,830.09 Million, respectively. The EBITDA for the Fiscal 2023, Fiscal 2022 and Fiscal 2021 were ₹9,441.34 Million, ₹2,025.32 Million and ₹1,257.19 Million respectively. The Profit after Tax for the Fiscal 2023, Fiscal 2022 and Fiscal 2021 were ₹4,994.55 Million, ₹798.71 Million and ₹457.30 Million respectively. This indicates steady growth in financial performance.

For the Waaree Energies IPO, the company is issuing shares at a pre-issue EPS of ₹21.57 and a post-issue EPS of ₹16.80. The pre-issue P/E ratio is 69.68x, while the post-issue P/E ratio is 89.46x against Industry P/E ratio is 151.13x. The company's ROCE for FY23 is 31.61% and RoE for FY23 is 26.26%. These metrics suggest that the IPO is fairly priced.

The Grey Market Premium (GMP) of Waaree Energies showing potential listing gains of 30% - 33%. Given the company's financial performance and the valuation of the IPO, we recommend only Risky Investors to Apply to the Waaree Energies Limited IPO for Listing gain or long term investment purposes.

Disclaimer: The information provided in this IPO review is for educational and informational purposes only and should not be construed as financial advice or an offer to buy or sell securities. The review must not be used as a singular basis of any investment decision. The views herein are of a general nature and do not consider the risk appetite or the particular circumstances of an individual investor; readers are requested to take professional advice before investing. Nothing in this document should be construed as investment advice. The content is based on publicly available information and market perceptions as of the date of publication and is subject to change. Neither the author nor the website is responsible for any losses or damages arising from the use of this information. 

About the Author
CA Abhay Kumar (Also known as CA Abhay Varn) is a qualified Chartered Accountant by profession and cleared CA at age 21. He is a SEBI Registered Research Analyst with Registration Number - INH300008465. He Possesses 8+ years of experience in the Stock Market Field and has also worked in Big CA firms during the training period. He is good at Technical analysis and Fundamental Analysis and uses both Technical and Fundamental analysis along with five other important factors that affect the movement of the Market namely Global Market Analysis, Upcoming Event Analysis, Institutional Money Analysis, Derivative Data Analysis, and Emotions and Sentiment of Traders and Investors in his Framework called - Technical Fundamental GUIDE to find the winning Trades.
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