Waaree Energies Limited is the largest manufacturer of solar PV modules in India with the largest aggregate installed capacity of 12GW, as of June 30, 2024. They commenced operations in 2007 focusing on solar PV module manufacturing. Over the years, they have significantly expanded the aggregate installed capacity from 4 GW in Fiscal 2022 to 12GW, as of June 30, 2024. Subsequent to June 30, 2024, they have commissioned 1.3 GW of solar module manufacturing facility at Noida, Uttar Pradesh through the subsidiary, Indosolar Limited. The solar PV modules are currently manufactured using multicrystalline cell technology, monocrystalline cell technology and emerging technologies such as Tunnel Oxide Passivated Contact ('TopCon'). The portfolio of solar energy products consists of the following PV modules: (i) multicrystalline modules; (ii) monocrystalline modules; and (iii) TopCon modules, comprising flexible modules, which includes bifacial modules (Mono PERC) (framed and unframed), and building integrated photo voltaic (BIPV) modules. As of the date of this Red Herring Prospectus, they operated five manufacturing facilities in India spread over an area of 143.01 acres. They operate one factory each located at Surat ('Surat Facility'), Tumb ('Tumb Facility'), Nandigram ('Nandigram Facility'), Chikhli ('Chikhli Facility') in Gujarat, India and the IndoSolar Facility, in Noida, Uttar Pradesh. The sales and revenue channels include: (i) Direct Sales to Utilities and Enterprises; (ii) Export Sales, which includes solar PV module sales to international customers as well as international EPC revenue; (iii) Retail Sales (comprising franchisee sales), which includes solar PV module sales through the extensive franchisee network focused on rooftop and MSME customer business vertical as well as franchisee EPC revenue; and (iv) Other Revenue from Operations, which includes EPC services for domestic utilities and enterprise customers, O&M services, trading in ancillary products, export incentives, generation of electricity from renewable resources and scrap sale. As of March 31, 2022, 2023 and 2024 and as of June 30, 2023 and June 30, 2024, the total numbers of customers served by them in India were 716, 566, 378, 836 and 1,067 while they served 26, 33, 36, 20 and 12 customers outside India in the same periods, respectively. An increase in Export Sales from Rs 6,578.22 million representing 23.05% of the revenue from operations in Fiscal 2022 to Rs 46,165.39 million representing 68.38% of the revenue from operations in Fiscal 2023, which further increased to Rs 65,690.96 million representing 57.64% of the revenue from operations in Fiscal 2024 and was Rs 24,412.07 million and Rs 13,400.94 million, respectively, for the three months ended June 30, 2023 and June 30, 2024, representing 73.35% and 39.31%, respectively, of the revenue from operations for the three months ended June 30, 2023 and June 30, 2024. As per financial performance, Waaree Energies Limited has posted total income / net profits of Rs 2,945.85 Cr / Rs 79.65 Cr (FY22), Rs 6,860.36 Cr / 500.28 Cr (FY23), Rs 11,632.76 Cr / Rs 1,274.38 Cr (FY24) and Rs 3,496.41 Cr / Rs 401.13 Cr (Q1 FY25). So as per previous financials data, company has shown good growth. Company has an average EPS of Rs 31.76 and average RoNW of 30.36% for last three fiscals. Issue is priced at a P/BV of 8.84 as per NAV of Rs 169.94/- as on 30.06.24. If we attribute latest earnings of FY23, FY24, TTM and annualised FY25 on fully diluted equity post issue then asking price is at a P/E of around 86.31, 33.88, 32.29 and 26.91 respectively. As per RHP, comparison between listed peers is shown in above table. On BRLM's front, seven lead managers are associated with this IPO, and have handled around 119 IPOs in last three fiscals. As per financials, Waaree Energies Limited has shown good results, RoNW is 30.36% and P/E is 86.31, 33.88, 32.29 and 26.91 respectively as per FY23, FY24, TTM and annualised FY25 earnings. So, issue looks fairly priced. Company is in business of manufacturing of integrated solar cell and solar module, which is a very fragmented and competitive business segment. As GoI is giving push to green energy, so we may see good growth for next couple of year. Performance of BRLM is good. So, we give SUBSCRIBE rating with hold for long term for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.
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