Why did Waaree Energies crash 9% today despite reporting robust results?

Why did Waaree Energies crash 9% today despite reporting robust results?

Shares of India’s largest solar module manufacturer tumbled 9 percent despite reporting strong quarterly results. The unexpected decline has raised eyebrows among investors, prompting questions about what’s driving the negative sentiment despite the company’s solid performance on paper.

Price Movement 

During Friday’s trading session, Waaree Energies Ltd reached an intra-day low of Rs.2,590.20 per share, falling 8.9 percent from its previous close of Rs.2,839.90 each. However, the stock recovered a bit before closing at Rs.2,668.10 apiece.

What Happened 

Waaree Energies shares came under pressure following the expiry of the shareholder lock-in period on April 25, making 15 crore shares eligible for trading. These shares account for 53 percent of the company’s outstanding equity, sparking concerns of potential sell-offs in the market.

The sharp dip in share price reflects investor caution, even though the company posted robust Q4 results with strong growth in both profit and revenue. Despite the volatility, analysts note that the unlocking does not imply all shares will be sold, but the increased float could impact near-term sentiment.

Financial Performance

In Q4 FY25, the company reported revenue of Rs.4,140.92 crore, marking a 37 percent increase from Rs.3,007.44 crore in Q4 FY24. On a quarterly basis, revenue surged 17 percent from Rs.3,545.27 crore in Q3 FY25, highlighting steady business expansion.

Net profit for the quarter witnessed a 36 percent year-on-year rise to Rs.644.47 crore, compared to Rs.475.16 crore in the similar quarter of previous year. Additionally, on a quarterly basis, net profit saw a 27 percent jump from Rs.506.88 crore in Q2 FY25, demonstrating robust earnings growth.

Business Highlights 

Waaree Energies currently has a solar module manufacturing capacity of approximately 15 GW and a cell manufacturing capacity of 5.4 GW. Its US manufacturing facility became operational in January 2025, marking a key milestone in its global expansion strategy. The company also completed its first year of operations under IndoSolar following its acquisition.

For the full year, the company reported a profit of Rs.55 crores. It holds a robust order book valued at Rs.47,000 crores and has Rs.15,550 crores in available funds, providing strong financial backing for future growth and capacity enhancements.

Expansion in Backward Integration

The company is deepening its backward integration with a 6 GW ingot and wafer facility set for FY27, alongside its existing 5.4 GW cell capacity. Its 15 GW solar module capacity will expand by 4.8 GW in FY26–27, supported by tech collaborations for Perovskite tandem cells. These steps aim to boost efficiency and control across the solar value chain.

It is also investing in energy storage, with a 3.5 GWh lithium-ion cell facility expected by FY27. In green hydrogen, the company has secured PLI approval for a 300 MW electrolyser plant, also set to be operational by FY27. These moves underline its focus on clean energy and self-reliance.

Forward Integration 

The company is actively strengthening its power infrastructure segment with the ongoing acquisition of EGPIPL. It recently won RUMSL’s 170 MW project and has secured connectivity for nearly 1 GW. A 3 GW inverter manufacturing facility, capable of producing three lakh units annually, is under construction and expected to be operational by Q4 FY26. In the EPC space, the company has 3.2 GW under execution and manages a 695 MWp O&M portfolio of solar power plant assets.

EBITDA Guidance 

The company is projecting strong year-on-year growth in EBITDA, driven by rising demand and continued operational excellence. For FY26, it has provided guidance indicating expected EBITDA in the range of Rs.5,500 to Rs.6,000 crores, reflecting confidence in its growth trajectory and efficient execution capabilities.

Written by – Ashok Kumar

Fundamentally strong stocks trading at a discount of up to 58% to add to your watchlist

Fundamentally strong stocks trading at a discount of up to 58% to add to your watchlist

Fundamentally strong stocks refer to shares of companies that are considered financially healthy and well-positioned for long-term growth. These stocks typically have strong financial performance, solid earnings, low debt, a competitive market position, and good management.

Investors often view these stocks as stable and less risky, as the companies behind them show consistent revenue growth, profitability, and potential for future success.

Listed below are some of the fundamental stocks trading at a discount of upto 57 percent.

Cochin Shipyard Limited

Cochin Shipyard Ltd is one of the largest shipbuilding and ship repair yards in India, located in Kochi, Kerala. The company specializes in constructing oil tankers, bulk carriers, and passenger vessels, along with ship repairs and maintenance services.

With a market capitalization of 38,884.65 Crores, the shares of Cochin Shipyard Limited have declined almost 50.6 percent from an all-time high of Rs. 2,977.10 to the current market price of Rs. 1468.

Cochin Shipyard Limited has an impressive Return on Equity (RoE) of  16.42 percent and a Return on Capital Employed (RoCE) of 20.99 percent, and a P/E ratio of 45.8. Furthermore, the company’s debt-to-equity ratio is 0.1.

Adani Total Gas Limited

Adani Total Gas is a joint venture between the Adani Group and TotalEnergies, focusing on city gas distribution (CGD) across India. The company supplies piped natural gas (PNG) to residential, commercial, and industrial sectors, and compressed natural gas (CNG) for transportation.

With a market capitalization of 68,743.63 Crores, the shares of Adani Total Gas Limited have declined almost 57.7 percent from an all-time high of Rs. 1,197.95 to the current market price of Rs. 624.

Adani Total Gas Limited has an impressive Return on Equity (RoE) of  17.95 percent and a Return on Capital Employed (RoCE) of 19.51 percent, and a P/E ratio of 103.29. Furthermore, the company’s debt-to-equity ratio is 0.37.

Supreme Industries Limited

Supreme Industries is a leading Indian manufacturer of plastic products, established in 1942. The company produces a diverse range of items, including PVC pipes and fittings, molded furniture, packaging films, and industrial products.

With a market capitalization of 44,477.82 Crores, the shares of Supreme Industries Limited have declined almost 46.1 percent from an all-time high of Rs. 6,482.40 to the current market price of Rs. 3546.70.

Supreme Industries Limited has an impressive Return on Equity (RoE) of  20.56 percent and a Return on Capital Employed (RoCE) of 26.88 percent, and a P/E ratio of 43.79. Furthermore, the company’s debt-to-equity ratio is 0.01.

KEI Industries Limited

KEI Industries is a prominent Indian manufacturer specializing in cables and wires. The company offers a wide range of products, including power cables, control cables, and instrumentation cables, catering to various sectors such as infrastructure, power, and construction.

With a market capitalization of 28,489.96 Crores, the shares of KEI Industries Limited have declined almost 40.7 percent from an all-time high of Rs. 5,040.40 to the current market price of Rs. 2978.2.

KEI Industries Limited has an impressive Return on Equity (RoE) of  18.05 percent and a Return on Capital Employed (RoCE) of 23.41 percent, and a P/E ratio of 45.21. Furthermore, the company’s debt-to-equity ratio is 0.1.

Written by Ashok Kumar

Steel stock under ₹70 jumps after Damani acquires stake in the company

Steel stock under ₹70 jumps after Damani acquires stake in the company

 

During Thursday’s trading session, the shares of a company engaged in the manufacturing of secondary steel products are in focus on the stock exchanges, after a prominent investor Ashok Kumar Damani bought stake in the company via a bulk deal on the NSE.

Price Movements

With a market cap of Rs. 420 crores, the shares of Manaksia Steels Limited hit an intraday high at Rs. 68.96 on BSE, up by nearly 1 percent, as compared to its previous closing price of Rs. 68.25.

The stock has delivered positive returns of over 14 percent in one year, and has gained around 26 percent in the last one month.

What’s the News

As per the latest bulk deal available with the NSE, a prominent investor Ashok Kumar Damani bought 5.25 lakh equity shares in Manaksia Steels Limited through an open market transaction, representing a 0.8 percent stake. The deal was valued at approximately Rs. 3.74 crores, executed at an average price of Rs. 71.3 per share.

Financial Performance

Manaksia Steels reported a marginal growth in revenue from operations, experiencing a year-on-year increase of nearly 20 percent, rising from Rs. 133.6 crores in Q3 FY24 to Rs. 160.5 crores in Q3 FY25.

However, during the same period, the company’s net profit declined from Rs. 4.8 crores to Rs. 2.3 crores, representing a fall of around 52 percent YoY.

EBITDA for Q3 FY25 decreased by 6.5 percent YoY to Rs. 5.8 crores, down from Rs. 6.2 crores in Q3 FY24, while the EBITDA margins also reduced from 4.65 percent to 3.62 percent, over the same timeframe.

Key Financial Ratios

In terms of key financial metrics, Manaksia Steels currently has a Return on Equity (RoE) of 8.62 percent and a return on capital employed (RoCE) of 10.2 percent. Additionally, the company’s debt-to-equity ratio stands at 0.44.

About the company

Manaksia Steels Limited is primarily engaged in the business of manufacturing value-added secondary steel products like cold rolled sheets, galvanised corrugated sheets, galvanised plain sheets, colour coated (pre-painted) sheets, and related products. The manufacturing units of the company are located at Haldia & Bankura (West Bengal).

Written by Ashok Kumar

Defence stock to buy now for an upside of more than 20%; Do you own it?

Defence stock to buy now for an upside of more than 20%; Do you own it?

The shares of the Defence company specializing in manufacturing bulk explosives, packaged explosives, and initiating systems for the mining, infrastructure, and construction industries, are in focus after a leading Indian brokerage firm, ICICI Securities, initiated a revised  Buy target on it with a 23 percent Upside Potential.

Price action

With a market capitalisation of Rs. 1,17,834.34 crores on Thursday, the shares of Solar Industries India Ltd jumped upto 1.5, making a high of Rs. 13281.00 per share compared to its previous closing price of Rs. 13081.25 per share.

Company Overview

Solar Industries India Limited (SIIL), founded in 1995, has become the leading manufacturer of industrial explosives in India, commanding around 30 percent of the market share. The company operates the world’s largest facility for packaged explosives and has a strong export presence, supplying products to 65 countries.

What Happened 

Solar Industries India Limited, engaged in manufacturing bulk explosives, packaged explosives, and initiating systems for the mining, infrastructure, and construction industries, is in focus after a leading indian brokerage firm, ICICI Securities, initiated revised a Buy Target of Rs. 16,000 (Earlier Rs. 13,720) on it with an upto 23 percent Upside Potential.

The reasons for the “Buy” target

Defence Business Expansion: The company is significantly scaling its defence operations, with its order book growing from INR 26bn to INR 130bn in FY25. This includes supplying systems and platforms, diversifying away from consumables, and capitalising on global trends like the European rearmament and ammunition shortages.

Global and Domestic Tailwinds: The company is well-positioned to take advantage of global defence trends, with a growing share of export orders (around 50 percent) reducing execution risks and customer concentration.

Healthy Financial Position: SOIL is expected to be net cash positive by FY25E and maintain low working capital days (under 90). This allows the company to invest up to INR 150bn by FY30E, supporting robust growth without excessive debt.

Strong Return Metrics: SOIL’s RoCE and RoE remain strong (27.3% and 35.2% respectively in FY25E), indicating efficient capital usage and high profitability, which supports a premium valuation multiple.

Strong EPS Growth: SOIL is expected to achieve a 35% CAGR in EPS through FY27E, driven by its expanding defence business, high-margin segments, and continued market leadership in explosives and defence products.

Rising P/E Multiple: Given the company’s sustained growth prospects, particularly in the high-margin defence segment, the analysts raised the P/E multiple to 70x (from 60x), justifying a higher target price of INR 16,000.

Product Offerings

Solar Industries India Limited offers a wide range of products, including industrial explosives, explosive initiating systems, defence explosives, and export products, catering to both domestic and international markets.

Industrial Explosives as per recent data (86 percent in FY24 vs 91 percent in FY22): The company manufactures bulk explosives, packaged explosives, and initiating systems, finding applications in the mining, infrastructure, construction, Defence, and Space sectors.

Order Book

As of  Q3FY25 solar Industries Company Limited has maintained an order book of Rs. 7,122 crore, which includes orders from defence and CIL (Coal India Limited) & SCCL (Singareni Collieries Company Limited), and many more.

Financials 

The company’s revenue rose by 37.6 percent from Rs. 1,440.05 crore to Rs. 1,982.62 crore in Q3FY24-25. Meanwhile, the Net profit rose from Rs. 203.33 crore to Rs. 314.87 crore during the same period.

Written by Ashok Kumar

Gold stock hits 5% upper circuit despite FII sold stake in the company via Bulk deal

Gold stock hits 5% upper circuit despite FII sold stake in the company via Bulk deal

During Wednesday’s trading session, the shares of a company engaged in the retail jewellery business hit a 5 percent upper circuit on NSE, despite a foreign investor offloading a 0.68 percent stake in the company through an open market transaction on NSE.

Price Movements:

With a market cap of Rs. 159.5 crores, the shares of Kabra Jewels Limited hit a 5 percent upper circuit at Rs. 152.1 on NSE, as compared to its previous closing price of Rs. 144.9.

The stock hit its 52-week high at Rs. 265 on 23rd January 2025, and compared to its current price levels, the stock is trading at a discount of nearly 43 percent.

What’s the News:

As per the latest bulk deal available with the NSE, foreign portfolio investor (FPI) Necta Bloom VCC – Necta Bloom One offloaded 71,000 equity shares in Kabra Jewels through an open market transaction, representing a 0.68 percent stake. The deal was valued at approximately Rs. 99.4 lakhs, executed at an average price of Rs. 140 per share.

Previously, on 21st April, Necta Bloom VCC had divested 1 lakh shares in the company, or equivalent to a 0.95 percent stake, in a deal worth around Rs. 1.4 crores at a price of Rs. 140.54 per share.

Financial Performance:

Kabra Jewels reported a significant growth in revenue from operations, experiencing a year-on-year increase of nearly 34 percent, rising from Rs. 122 crores in FY23 to Rs. 163 crores in FY24.

Similarly, during the same period, the company’s net profit increased from Rs. 4 crores to Rs. 9 crores, representing an impressive growth of around 125 percent YoY.

About the company:

Kabra Jewels Limited is engaged in operating in the retail jewellery sector, offering gold, diamond, and silver ornaments, and other offerings include gold and silver coins, utensils and other artefacts.

The primary expertise of Kabra Jewels is designing and marketing under the brand name ‘KK Jewels’. The company works on diverse products including rings, earrings, pendants, bracelets, chains, necklaces, bangles and other wedding jewellery.

Written by Ashok Kumar