NEW DELHI: If you are still gushing over the logic-defying returns given by the stock of , take a breath!
Another stock from the same domain has left Dalal Street awe-struck with an even better stellar show. However, analysts doubt if there is any fundamental backing to that eye-popping performance.
Waaree Renewable Technologies, rechristened recently from
, which is still its ticker name on BSE, has surged 1,240 per cent since it hit its 52-week low in July 2020. That performance eclipsed all its peers during this period.
The stock currently trades at Rs 99.40 against the 52-week low value of Rs 7.42. Even on Tuesday, the stock hit the 5 per cent upper circuit. The market values the firm at merely Rs 206.90 crore, much of which have come in the last one year.
The stock performance rivals that of Adani Green Energy, which has jumped 48 times in the last three years of its existence on the bourses, and six times in the last one year. Moreover, there is hardly any coverage of both the stocks by analysts, both domestically as well as overseas.
However, the similarities end there. Adani Green is turning into a behemoth with huge operations, pending projects and acquisitions, while Waaree Renewables barely exists, so to say.
The company reported net revenue of Rs 5.61 crore for the March quarter and Rs 7.60 crore for FY21. Net profit for these periods stood at Rs 2.39 crore and Rs 2.34 crore, respectively, data available at BSE shows. In comparison Adani Green’s March quarter’s revenue came in at Rs 2,034 crore and net profit at Rs 135 crore.
While Adani operates huge solar farms in many parts of India, Waaree Renewables counts three rooftop 400-800 KWp (kilowatt peak) installations in Karnataka, Maharashtra and Haryana, according to available information on its website. So, in essence, it is more of a service provider than a power generator. Though the company has a target pipeline for building an asset of 600 MW in next three years, the website states.
Understandably, not many analysts agreed to speak on the company. Of those, who did and knew a little about it said the stock does not warrant such interest from investors.
“The company installs rooftop solar power units. Companies which have no name but clocking such returns are meaningless. While the stock has appreciated, whatever is known about the company does not warrant it to be even looked at,” a veteran investor said.