Waaree Energies’ share price has delivered 6% gains so far this year, but Emkay Global is bullish about the stock going forward. It has retained its ‘Buy’ rating on Waaree Energies and sees as much as a 41% increase over the next 12 months. They have set the target price at Rs 4,260. Waaree Energies announced the acquisition of United Solar Holding Inc (USH) for $30 million for 5.37 million Series B Preferred Shares.
This deal would provide the company with a stake in USH’s major advanced 100 ktpa polysilicon plant in Oman. This, along with likely anchor customer status, enables backwards integration upstream in the PV value chain.
Emkay Global on Waaree Energies: Stake buy to help domestic units
While the percentage stake is not disclosed, however, the brokerage expects the ownership to be under 5, based on publicly available information and an estimated project cost of $1.6 billion. The plant has the capacity to produce 40GWpa of modules, hence a sizable portion of its 10GW Nagpur wafer-ingot requirement is likely to be met.
Emkay Global on Waaree Energies: Geographically strategic placement
Being one of the major non-Chinese plants globally and located in the Sohar Freezone (FTA with US, India, etc), the cost curve (though higher than Tier 1 Chinese players’) could be much lower vs other parts of the world, while also meeting the US and EU’s traceability requirement. Waaree has stated this is a strategic investment for supporting the rapidly expanding US and global footprint. The plant may be near commissioning, and ramp-up to full capacity may happen in 1 year.
Emkay Global on Waaree Energies: Important upstream solar PV value chain move
Emkay said that this partnership is an important move in the upstream solar PV value chain. The project may be near Commercial Operation Date (CoD), though further details with respect to Waaree’s volume visibility and stake in this project are still awaited. The signing of this deal was part of the recent India-Oman Comprehensive Economic Partnership Agreement.
“We await more details from the management, but view this positively. Waaree Energies also commissioned 5.1GW of module capacity in Gujarat in Q3FY26,” said Emkay Global.