Waaree Energies shares drop 2% after Kotak Equities initiates coverage with 'Sell' rating
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Waaree Energies' shares fell 2% after Kotak Institutional Equities initiated coverage with a 'Sell' rating and set a target price of Rs 2,550, suggesting a potential downside of 6.5% from the previous closing price of Rs 2,724. "We initiate coverage on Waaree Energies with a 'Sell' rating and a DCF-based fair value of Rs 2,550, implying 13.1X March 2027E EPS," the brokerage firm said. Kotak expects Waaree to see a 12% compound annual growth rate (CAGR) for its module capacity, which is expected to reach 40 GW by 2035. Additionally, Kotak projects a 14% volume CAGR for Waaree’s modules until FY2035, driven by strong capacity addition and utilization rates. Waaree, the largest domestic solar module manufacturer in India with an 18% market share, is poised to expand rapidly. Kotak expects the company to reach 19.3 GW module, 11.4 GW cell, and 6 GW wafer capacity by 2027. Vertical integration, Kotak notes, should...