Waaree Renewable Technologies Ltd.
ISIN: INE299N01021 • Market Cap: ₹9,194 Cr
The 5-Pillar Quality Audit for Waaree Renewable Technologies Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (19.1%), Return on Capital Employed (63.0%), and equity compounding (50.3%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 0.06 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (118.3%) and 3Y PAT CAGR (109.7%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 18.09 vs PEG of 0.95 and Dividend Yield of —.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 74.3%, backed by 2.1% institutional ownership.
Key Fundamental Strengths
Superior Capital Efficiency (ROCE: 63.0%)
Waaree Renewable Technologies Ltd. generates exceptional return on capital employed of 63.0%, reflecting pricing power and competitive moat.
Robust Equity Compounding (ROE: 50.3%)
Shareholder equity compounds at a healthy 50.3%, exceeding average Indian equity benchmarks.
Fortress Balance Sheet (D/E: 0.06)
The company operates virtually debt-free, shielding net margins from interest rate cycles and monetary tightening.
Strong Topline Expansion (3Y Sales CAGR: 118.3%)
Revenue has expanded at 118.3% CAGR over 3 years, signaling industry market-share gains.
High-Velocity Profit Compounding (3Y PAT CAGR: 109.7%)
Net earnings have compounded at 109.7% annualized, demonstrating operating leverage.
Attractive Valuation Margin (P/E: 18.09)
Trading at a P/E multiple of 18.09, the stock offers a favourable risk-reward entry for quality compounding.
Areas to Watch & Potential Risks
Sectoral & Macro Headwinds (Capital Goods)
Subject to broader cyclical demand, raw material price shifts, and regulatory frameworks governing the Capital Goods space.
Quantitative Strategy Eligibility
Checking WAAREERTL against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Passes Saurabh Mukherjea's Coffee Can rule: 10%+ sustained revenue growth and 15%+ ROCE/ROE.
Quality Factor Screener (High RoIC + Low Debt)
Qualifies for Indian Quality Indices with overall score of 90/100 and clean gearing.
GARP / Value-Growth Blend
Provides balanced valuation margin with strong profitability scores.
Capital Goods Sector Peer Comparison
Compare WAAREERTL directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| Waaree Renewable Technologies Ltd. (WAAREERTL)Current | 90/100 | ₹9,194 Cr | 18.09 | 63.0% | 0.06 | — |
| Hindustan Aeronautics Ltd. (HAL) | 70/100 | ₹3.35 Lakh Cr | 35.94 | 13.9% | 0.00 | View |
| Bharat Electronics Ltd. (BEL) | 80/100 | ₹2.99 Lakh Cr | 48.61 | 32.7% | 0.00 | View |
| Tata Motors Ltd. (TMCV) | 71/100 | ₹1.76 Lakh Cr | 42.02 | 31.3% | 0.38 | View |
| ABB India Ltd. (ABB) | 72/100 | ₹1.57 Lakh Cr | 52.48 | 28.7% | 0.00 | View |
| Hitachi Energy India Ltd. (POWERINDIA) | 76/100 | ₹1.50 Lakh Cr | 129.99 | 26.7% | 0.00 | View |
Frequently Asked Questions: Waaree Renewable Technologies Ltd.
Q:What is the 5-Pillar Fundamental Score for Waaree Renewable Technologies Ltd. (WAAREERTL)?
Waaree Renewable Technologies Ltd. has a RupeeTools Fundamental Score of 90/100, placing it in the 'Exceptional Quality' category. Its pillar scores are: Profitability (95/100), Financial Health (91/100), Growth (99/100), Valuation (90/100), and Ownership Quality (65/100).
Q:Is WAAREERTL fundamentally strong for long-term investment?
Yes, WAAREERTL exhibits solid fundamental strength with a 90/100 score, driven by a return on equity of 50.3% and a debt-to-equity ratio of 0.06.
Q:Does WAAREERTL pass the Coffee Can Investing filter?
Yes! WAAREERTL satisfies both core pillars of Coffee Can Investing: achieving consistently high capital returns (ROCE/ROE >= 15%) alongside double-digit multi-year revenue growth.
Q:How does WAAREERTL compare against other Capital Goods peers?
Within India's Capital Goods sector, WAAREERTL trades at a P/E of 18.09 and generates an ROCE of 63.0%. Compare its 5-Pillar score of 90/100 against top sector peers like Hindustan Aeronautics Ltd. (70/100), Bharat Electronics Ltd. (80/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.