Shares of Waaree Energies saw marginal gains of 0.46% to ₹2,709.35 on December 4, but the stock remains under pressure, having dropped 33% from its all-time high of ₹3,743 on November 6. While still 8.37% above its listing price of ₹2,500 on October 28, the steep correction has raised concerns among investors about its future trajectory.
Factors Behind the Decline
Market analysts in Singapore say the sharp fall is due to concerns over falling demand for Indian exports of solar modules, especially exports to the United States in wake of the uncertainties related to the policies on renewable energy after U.S. President Donald Trump came to power.
Trump’s victory speech hinted at possible rollbacks of renewable energy projects that could disrupt global supply chains. To Indian exporters such as Waaree Energies, for whom the U.S. is one of the biggest markets, the potential damage will be felt if those policy changes do take place.
Broader Industry Concerns
A Reuters report suggested that while President Biden’s 2022 Inflation Reduction Act (IRA) aimed to boost solar and wind energy with significant subsidies, Trump’s administration could slow these efforts. This has raised questions about the global renewable energy outlook, impacting stocks like Waaree.
Analyst Take
Analysts advised caution and a long-term view on Waaree Energies despite near-term challenges. The domestic solar energy sector in India remains strong with the government pushing for clean energy. The expertise of Waaree in solar EPC and module manufacturing can help it capitalize on the domestic opportunities even if the global demand falters.
Investors should keenly watch the developments in the policies of the U.S. energy sector. They should make phased investment in Waaree Energies for long-term growth prospectus.
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Source: Moneycontrol
News Desk
