Waaree Energies: Mitigating Risks in the US Market

Overview

Emkay Global Financial's research report on Waaree Energies highlights the company's ability to navigate the recent imposition of preliminary Countervailing Duty (CVD) on solar PV imports from India, Indonesia, and Laos by the US Department of Commerce. This development has led to a sharp stock correction among Indian players.

Key Developments

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Waaree Energies' management has clarified that the company's US supplies are unlikely to be impacted by the CVD/ADD measures, as they source solar cells from countries with lower US duties, approximately 10%. The company has diversified its sourcing to countries outside of India and the affected nations, ensuring compliance with Free and Open Market Obligations (FEOC).

Capacity Expansion

Waaree Energies has ramped up its US supplies, with significant capacity expansions in Arizona and Texas. The company has acquired 1 GW of capacity in Arizona and is expanding its operations in Texas by 1.6 GW. This expansion is expected to take the company's total US capacity to approximately 4.2 GW by mid-CY26, sufficient to meet its current order book.

Outlook

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With its diversified non-China sourcing, Waaree Energies is well-positioned in the US market, a key focus area for the company. Emkay Global Financial retains its estimates and reiterates a BUY rating with a target price of Rs 4260.