Waaree Renewab. (WAAREERTL)

FairStock Score: 61/100 — STEADY

Score breakdown: P/E: 1/3 · ROCE: 2/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

Strengths

• Sales growth of 136.18% and profit growth of 124.67% show exceptional momentum.
• ROE of 131.10% and ROCE of 82.31% indicate very efficient capital deployment.
• Debt-to-equity of 0.16 gives a robust balance sheet for scaling.
• Promoter holding of 74.32% aligns ownership with minority investors.
• Piotroski F-Score of 7/9 suggests solid fundamental health.

Concerns

• P/B of 35.07 with book value of only ₹30.40 leaves no margin of safety for Graham-style investors.
• Very high ROE is inflated by a tiny equity base and may normalize as the company grows.
• Dividend yield of 0.12% means shareholders receive almost no income cushion.
• FairStock Score of 60/100 ('STEADY') suggests quality is decent, but not a screaming bargain.

AI Analysis

Waaree Renewables presents a fascinating puzzle. The business is growing at a pace that would make most companies envious: sales up 136% and profits up 125%, with a latest quarter of ₹851 Cr revenue and ₹120 Cr net profit. Returns on capital are extraordinary—ROE above 131% and ROCE above 82%—and the balance sheet is conservative, with debt-to-equity of just 0.16. Promoters own 74%, so their interests are aligned with mine. The Piotroski score of 7/9 tells me the underlying fundamentals are solid, not merely headline growth. On earnings, the P/E of 21.2 seems reasonable for this growth rate, and the PEG ratio of 0.16 suggests the market is not fully pricing in the expansion. But Graham would tug at my sleeve: book value is only ₹30.40, while the market price is ₹1,066. A P/B of 35 means I am paying a tremendous premium for future expectations. ROE of 131% is flattered by a thin equity base, and that mathematical tailwind will fade as retained earnings accumulate. The dividend yield is negligible, so total returns depend entirely on continued growth and the market's willingness to sustain this multiple. This is a fast grower, not a stalwart with decades of proven stability. I would not dismiss it, but I would demand that growth continues at a high rate for years, and I would size my position accordingly. A wonderful business can still be a poor investment if the price already embeds perfection. I watch the quarterly execution carefully; in businesses like this, the enemy is not competition alone, it is the law of large numbers.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer