Check Before You Invest : Waaree Energies Ltd

Q: Which industry/sub-sector does Waaree Energies Ltd belong to?

Waaree Energies Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Electric Equipment segment.

Q: Is Waaree Energies Ltd a good quality company?

Waaree Energies Ltd is a good quality company, based on a consistently good multi-year financial track record. This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q: Is Waaree Energies Ltd undervalued or overvalued?

Waaree Energies Ltd appears Somewhat overvalued, as its key valuation ratios are higher than their past averages. Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more. Valuation Ratios. Price to Earnings, Current: 24.69, Historic Median: -. Price to Book, Current: 7.08, Historic Median: -. Price to Sales, Current: 4.43, Historic Median: -. EV to EBITDA, Current: 14.69, Historic Median: -

Q: Is Waaree Energies Ltd a good buy now?

Waaree Energies Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Q: Revenue growth of Waaree Energies Ltd?

Waaree Energies Ltd revenue growth is 19.1% for FY-2025, which is below its 5-year CAGR of 44.49%, indicating slower growth.

Q: Gross Profit margin of Waaree Energies Ltd?

Waaree Energies Ltd Gross profit margin which is the profit after deduction of direct costs, is 21.3% for FY-2025, which is above its 5-year median of 12.1%, indicating increasing margins.

Q: Operating Profit Margin of Waaree Energies Ltd?

Waaree Energies Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 18.79% for FY-2025, which is above its 5-year median of 11.63% indicating increasing margins.

Q: Net Profit Margin of Waaree Energies Ltd?

Waaree Energies Ltd Net Profit Margin is 13.95% for FY-2025, is above its 5-year median of 7.04%, indicating increasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 21.3, Historic Median: 12.1. Operating Profit Margin (%), Current: 18.79, Historic Median: 11.63. Net Profit Margin (%), Current: 13.95, Historic Median: 7.04

Q: Return on Asset of Waaree Energies Ltd?

Waaree Energies Ltd Return on Asset is 12.53%, which is above its 5-year historical median of 9.83%, indicating improved asset utilization efficiency.

Q: Return on capital employed (ROCE) of Waaree Energies Ltd?

Waaree Energies Ltd Return on capital employed is 32.56% for FY-2025, which is in line with its 5-year historical median of 32.56%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 11.25%, indicating value creation.

Check Before You Invest : Waaree Energies Ltd

Snapshot

Q.1 Which industry/sub-sector does Waaree Energies Ltd belong to?

Waaree Energies Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Electric Equipment segment.

Q.2 Is Waaree Energies Ltd a good quality company?

Waaree Energies Ltd is a good quality company, based on a consistently good multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Waaree Energies Ltd undervalued or overvalued?

Waaree Energies Ltd appears Somewhat overvalued, as its key valuation ratios are higher than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios	Current	5-year Historic Median
Price to Earnings	24.69	-
Price to Book	7.08	-
Price to Sales	4.43	-
EV to EBITDA	14.69	-

Q.4 Is Waaree Energies Ltd a good buy now?

Waaree Energies Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

How has it performed on generating Profits?
By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.
How efficiently has it utilized Capital?
By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.
How is it managing its Debt?
By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Waaree Energies Ltd?

Waaree Energies Ltd revenue growth is 19.1% for FY-2025, which is below its 5-year CAGR of 44.49%, indicating slower growth.

Q.2 Gross Profit margin of Waaree Energies Ltd?

Waaree Energies Ltd Gross profit margin which is the profit after deduction of direct costs, is 21.3% for FY-2025, which is above its 5-year median of 12.1%, indicating increasing margins.

Q.3 Operating Profit Margin of Waaree Energies Ltd?

Waaree Energies Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 18.79% for FY-2025, which is above its 5-year median of 11.63% indicating increasing margins.

Q.4 Net Profit Margin of Waaree Energies Ltd?

Waaree Energies Ltd Net Profit Margin is 13.95% for FY-2025, is above its 5-year median of 7.04%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	21.3	12.1
Operating Profit Margin (%)	18.79	11.63
Net Profit Margin (%)	13.95	7.04

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Waaree Energies Ltd?

Waaree Energies Ltd Return on Asset is 12.53%, which is above its 5-year historical median of 9.83%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Waaree Energies Ltd?

Waaree Energies Ltd Return on capital employed is 32.56% for FY-2025, which is in line with its 5-year historical median of 32.56%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 11.25%, indicating value creation.

Q.7 Return on Equity (ROE) of Waaree Energies Ltd?

Waaree Energies Ltd Return on equity is 26.57% for FY-2025, which is in line with its 5-year historical median of 26.57%, indicating the business is making similar use of its shareholders capital.

Q.8 Cash conversion cycle of Waaree Energies Ltd?

Waaree Energies Ltd Cash conversion cycle is 34 days, in line with its 5-year historical median of 34 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover (x)	0.9	1.39
ROE (%)	26.57	26.57
ROCE (%)	32.56	32.56
Cash Conversion Cycle	34 days	34 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Waaree Energies Ltd?

Waaree Energies Ltd Debt-to-Equity ratio is 0.13, which is lower the industry average of 0.29, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Waaree Energies Ltd?

Waaree Energies Ltd Debt to cash flow from operations is 0.41, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Waaree Energies Ltd?

Q.1 Promoter shareholding and pledge status of Waaree Energies Ltd?

Promoters hold 64.19% of the Waaree Energies Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Waaree Energies Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Waaree Energies Ltd vs industry peers?

Waaree Energies Ltd revenue CAGR is 44.49%, compared to the industry median CAGR of 19.17%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	19.1	19.2
Gross Profit Growth (%)	83.5	37
Operating Profit Growth (%)	74.3	26.6
Net Profit Growth (%)	55.1	43.5

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	0.9	1.39
ROE (%)	26.57	18.91
ROCE (%)	32.56	32.56
Cash Conversion Cycle (days)	34.08	34

Valuation & price assessment

Q.1 Stock return of Waaree Energies Ltd over the last decade?

Over the last 1 year(s), the stock has delivered a CAGR of 24.54% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	-	24.5%

Q.2 Valuation ratios of Waaree Energies Ltd vs historical?

The current P/E ratio of 24.69 is higher than its historical median of , indicating that the stock is trading above its historical average valuation.

Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	24.69	-	38.08
Price to Book	7.08	-	3.97
Price to Sales	4.43	-	2.75
EV to EBITDA	14.69	-	18.75

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Check Before You Invest : Waaree Energies Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

Check more companies

Check trending companies

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