Waaree Energies Shares Debut with 66% Gains, Drop 9% Amid Profit Booking – Should You Buy, Sell, or Hold?

Waaree Energies made headlines with a remarkable stock market debut on October 28, 2024. The stock of this leading solar panel manufacturer surged, listing at a significant premium to its IPO price, leaving investors questioning their next move: should they buy, sell, or hold?

A Stellar Start on BSE and NSE

Waaree Energies shares opened strongly on the Bombay Stock Exchange (BSE), debuting at Rs 2,550 per share—a massive 69.66% premium over its IPO price. On the National Stock Exchange (NSE), Waaree Energies shares listed at Rs 2,500, achieving a 66.33% jump and pushing the company’s market capitalization to nearly Rs 69,000 crore. With the waaree energies ipo listing price set well above expectations, Waaree seemed primed for long-term success in the solar sector.

Profit Booking and Price Drop

After a sharp opening, Waaree Energies shares saw a quick dip as investors took profits. The waaree energies share price dropped to an intraday low of Rs 2,300 on the NSE, and nearly 10% down on the BSE, resting at Rs 2,294. This shift left many investors uncertain, given the high waaree solar share price nse today.

Expert Opinions: Buy, Hold, or Sell?

Market analysts offered mixed views on Waaree Energies’ future. Narendra Solanki, Head of Fundamental Research at Anand Rathi, recommended a hold for the long term, emphasizing Waaree’s strong market presence and the government’s renewable energy push as promising factors. Another analyst, Sagar Shetty of StoxBox, echoed this sentiment, noting Waaree’s global expansion and competitive advantage in the solar market.

Conversely, Prashanth Tapse of Mehta Equities suggested cautiousness, recommending investors book profits due to Waaree’s premium valuation and potential overvaluation following the IPO gains.

Strong Financial Growth

Waaree Energies has shown impressive growth, with its operating revenue growing at an incredible 99.8% CAGR from FY22 to FY24. The company’s profit after tax surged to Rs 1,274.3 crore in FY24, significantly up from Rs 79.6 crore in FY22, leading to a robust waaree energies share price today.

Future Outlook for Waaree Energies

Waaree Energies plans to use the funds raised from its IPO to build a 6 GW solar manufacturing facility in Odisha, aiming to expand its production of ingots, wafers, and solar PV modules. This ambitious move could further bolster Waaree Energies’ share price and reinforce its place in India’s growing renewable energy sector.

Final Thoughts

For long-term investors, Waaree Energies’ promising market position and growth plans suggest potential in holding the stock, while those looking for quick gains might consider booking profits. With mixed opinions from experts, it’s important to consider both Waaree Energies’ current valuation and future growth prospects before making a decision in this volatile market.