Waaree Energies Ltd (WAAREEENER.NS) stock analysis

In our weekly check, Waaree Energies Ltd is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 17 pass, warnings: 3, red flags: 5.

About Waaree Energies Ltd

Waaree Energies Ltd is an Energy company (Solar) based in India, listed on NSE as WAAREEENER.NS.

What our checks show for WAAREEENER.NS

Red flags

• Operating profit does not cover the interest bill (0.2x): interest is paid from cash or new debt.
• Analysts expect the net margin to shrink by 3.9 points from today's 14%.
• Free cash flow is negative (-11% of revenue): the business spends more cash than it brings in.
• The dividend takes 147% of profit: little cushion if profit falls.
• Pay in shares equals 0% of free cash flow: it dilutes shareholders.

Warning signs

• Operating cash flow is only 0.53x net profit: part of the reported profit does not arrive as cash.
• The price swings a lot: 36.4% annual volatility. Expect large ups and downs.
• The stock has fallen as much as 42% from a peak. Would you have held through that?

Strengths

• Debt is low: 0.33x equity.
• The net margin rose by 11.3 points over 5 years, to 14%.
• The gross margin is 25.9% and has risen by 10.6 points: pricing power is holding.
• Analysts expect earnings per share to grow about 11.8% a year over the next years.
• Analysts expect revenue to grow about 21.3% a year over the next years.
• Revenue grew 57.8% a year over the last 3 years.

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Questions

What grade does Waaree Energies Ltd (WAAREEENER.NS) have?

In our weekly check, Waaree Energies Ltd is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 17 pass, warnings: 3, red flags: 5. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of WAAREEENER.NS stock?

This week's biggest flags for Waaree Energies Ltd: Weak interest cover, Margins expected to shrink, Weak free cash flow. In total 8 of 25 checks show a warning or a red flag.

What does Waaree Energies Ltd do?

Waaree Energies Ltd is an Energy company (Solar) based in India, listed on NSE as WAAREEENER.NS.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-31

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