Shares of Waaree Energies Ltd. are trading lower on Tuesday, July 14, after brokerage firm UBS downgraded the stock to ‘Neutral’ from ‘Buy’ and slashed its price target.
UBS lowered its price target by 30% to ₹3,100 from ₹4,400 earlier. However, the revised target still suggests a potential upside of 8% from the stock’s last closing price on Monday.
The brokerage also reduced its valuation multiple to 21x 12-month forward price-to-earnings (P/E) from 28x, citing a higher discount to industry peers and expectations of lower margins.
According to UBS, the downgrade reflects mounting near- to medium-term challenges for the solar industry as the sector enters a phase of consolidation.
The brokerage said that Waaree’s planned ₹30,000 crore capital expenditure, up sharply from ₹13,000 crore announced last year, is expected to expand its manufacturing capacity to 15.4 GW of solar modules and 10 GW of cells and ingot-wafer capacity by FY28. This would account for nearly 20% of India’s domestic manufacturing capacity.
UBS believes the investment will strengthen Waaree’s leadership position through greater backward integration. However, it also cautioned that the aggressive capacity addition across the industry could weigh on profitability.
The brokerage further mentioned execution risks associated with Waaree’s ambitious expansion plans and said visibility on returns from newer businesses such as battery energy storage systems (BESS) remains limited.
According to Bloomberg data, 19 analysts currently cover the stock. Of these, 14 have a ‘Buy’ rating, one recommends ‘Hold’, while four have a ‘Sell’ recommendation.
Waaree Energies shares ended 1.5% lower at ₹2,878.80 on Monday and have declined around 6% over the past month.
First Published: Jul 14, 2026 8:15 AM IST