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Business Standard
2 days ago
- Business
- Business Standard
Reliance Ind's solar leap prompts Nuvama's highest target price on D-Street
RIL in focus: Domestic brokerage firm Nuvama Institutional Equities (Nuvama) has raised its target price on oil-to-telecom conglomerate Reliance Industries Ltd (RIL) to ₹1,801—the highest on the Street (Dalal Street)—citing the company's entry into external sales of high-efficiency solar modules and the massive upside potential from its fast-evolving New Energy business. The brokerage expects these developments to add majorly to profits and drive a re-rating akin to the market response during the RJio rollout in 2017. At the core of this upgrade is RIL's recent commencement of sales of heterojunction technology (HJT) solar modules, a move confirmed during the company's latest analyst meet. Notably, these modules have been included in MNRE's Approved List of Models and Manufacturers (ALMM), and are fetching over 5 per cent premium over TOPCon modules, backed by a 23.1 per cent efficiency. Nuvama forecasts that the company's 10GW module and cell capacity, to be fully operational by early CY26, could contribute an incremental ₹3,800 crore to consolidated profit after tax (PAT), equivalent to 6 per cent of FY25 earnings. 'We forecast it shall add 6 per cent to PAT (a la Tata Power) and shine out a huge valuation kicker (Waaree/Premier),' Nuvama noted in its report. The brokerage also highlighted strong parallels with listed peers. 'Drawing comparison with Waaree's (13.3/5.4GW)/Premier's (4/3.2GW) solar module/cell capacity, whose enterprise value (EV) is about $10/6 billion, RIL's 20GW fully integrated solar equipment manufacturing facility could command a much higher EV. Waaree/Premier is trading at 14x/15x FY27E EV/Ebitda; ascribing 15x EV/Ebitda to RIL's modules business (20GW capacity) yields an EV of $20 billion, which could trigger a valuation re-rating for RIL—similar to the trend seen post-RJio's launch in 2017," the brokerage explained. Beyond solar, RIL's ambitions span across the green energy spectrum. The company is in the process of building a 30GWh battery storage facility and has entered a technology tie-up with Nel ASA for electrolyser manufacturing, the brokerage noted. Green hydrogen and 55 compressed biogas (CBG) plants are also part of the roadmap. 'At its AGM in August 2024, RIL had guided for a remarkable surge in the New Energy business… with expectation of its profitability equalling O2C profitability in the next five–seven years,' the report said. Currently, the O2C (Oil-to-Chemicals) segment accounts for over half of RIL's attributable PAT and around 40 per cent of Ebitda. The New Energy business, as per Nuvama, has the potential to add '50 per cent-plus to consolidated PAT' by FY30, dramatically reshaping the group's profit mix. With visibility improving on both profitability and integration in the New Energy vertical, Nuvama urges investors to 'watch out for the upcoming AGM in August/September,' which may further flesh out this transformational roadmap. The brokerage reiterated its 'Buy' rating on RIL, driven by 'potential for higher-than-expected module profits' and the valuation re-rating opportunity.
Economic Times
6 days ago
- Business
- Economic Times
Rayzon Solar files DRHP with Sebi for Rs 1,500 crore IPO
IPO details Use of proceeds Capacity growth and manufacturing expansion Live Events Product portfolio & clients Financial Performance IPO Book Runners and Listing (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel The company has an installed module manufacturing capacity of 6.00 GW as of March 31, 2025. Rayzon Solar is targeting the next phase of its growth by expanding into solar cell manufacturing The IPO will have a face value of Rs 2 per share and includes a reservation for eligible employees at a discounted rate. The company may also explore a pre-IPO placement of up to Rs 300 crore. If completed, this will reduce the fresh issue size the planned Rs 1,500 crore IPO, Rs 1,265 crore will be invested in its wholly owned subsidiary, Rayzon Energy Private Limited (REPL), to partially fund the establishment of a 3.5 GW solar cell manufacturing facility using TOPCon (Tunnel Oxide Passivated Contact) technology in Kathvada, Surat. The remainder will be allocated to general corporate began operations in 2017 and scaled its module capacity from 40 MW in 2018 to 6.00 GW by 2025. It currently operates two manufacturing plants in Karanj and Sava, each with 3.00 GW capacity. An additional 2.00 GW capacity at Sava is expected to become operational by October REPL, the company is building a 3.5 GW solar cell unit (operational by FY 2027) and a 19,800 MT aluminium extrusion and anodising unit via another subsidiary, Rayzon Industries, expected to go live in July company is a certified manufacturer under the Ministry of New and Renewable Energy's Approved List of Module Manufacturers ('ALMM'), with an enlisted capacity of 3.00 GW, constituting 3.8% of the total ALMM enlisted capacity as of April 21, 2025. (Source: CRISIL Report).Also read: Last chance: HDB Financial's Rs 12,500 crore IPO closes today. Should you chase 8% listing gains? The company offers a wide range of modules, including: Bifacial modules with N-type TOPCon and P-type Mono PERC cells, Monofacial and full black variants with PERC and TOPCon technology,Rayzon serves over 500 clients, including major names like Panasonic Life Solutions, Mahindra Solarize, ACME Cleantech, V-Guard Industries , and Hero Rooftop Energy. It also supplies modules under key government schemes like PM Surya Ghar Muft Bijlee Yojana and of May 31, 2025, Rayzon had an order book of 3.60 GW for PV modules and a distribution network of 68 channel partners across 59 cities in 20 states and union Solar has delivered impreesice growth over the past financial years, with revenue from operations rising from Rs 261.65 crore in FY22 to Rs 1,272.85 crore in FY24, reflecting a CAGR of 120.56%, while EBITDA surged from Rs 13.47 crore to Rs 101.41 crore (CAGR: 174.35%) and profit after tax increased from Rs 3.91 crore to Rs 60.94 crore. For the nine months ended December 31, 2024, the company reported revenue of Rs 1,957 crore and PAT of Rs 239.03 Capital Markets, Ambit Private Limited, and IIFL Capital Services are the book-running lead managers, while KFin Technologies is the registrar. The equity shares will be listed on the BSE and the NSE.
Mint
7 days ago
- Business
- Mint
HVR Solar Advances India's Solar Tech Leadership with 2GW N-Type Topcon Manufacturing Hub
Delhi, India, 26th June 2025: HVR Solar Pvt Ltd is betting big on next-generation solar technology with the launch of a 2GW annual production facility dedicated to N-Type Topcon bifacial modules in Sonepat, Haryana. The facility, operational from Q3 2025, represents a strategic pivot toward high-efficiency solar solutions as the industry grapples with evolving performance demands and technological convergence. The 6.5-acre facility will produce modules with maximum capacity of 715Wp, positioning HVR Solar in the premium segment where efficiency gains translate directly to improved project economics. The move comes as global solar manufacturers race to commercialize advanced cell technologies, with N-Type Topcon emerging as a leading candidate to replace traditional PERC technology. "We're witnessing a fundamental shift in solar technology adoption, where efficiency improvements of even 2-3% can determine project viability," said Mr. Rishabh Aggarwal, Director, HVR Solar Pvt Ltd. "Our investment in N-Type Topcon technology positions us at the forefront of this transition, offering developers a compelling value proposition in an increasingly competitive market." The technology choice reflects careful market analysis of emerging trends in solar photovoltaics. N-Type Topcon cells offer superior efficiency compared to conventional P-Type PERC cells, with lower temperature coefficients and reduced light-induced degradation. These characteristics become particularly valuable in utility-scale installations where marginal efficiency gains compound over project lifecycles. Bifacial module design adds another dimension to performance optimization, enabling energy generation from both sides of the panel. This capability can increase energy yield by 10-30% depending on installation conditions, making it particularly attractive for ground-mounted utility projects and agrivoltaics applications. Mr. Sagar Sachdev, Executive Director, HVR Solar Pvt Ltd, highlighted the strategic rationale: "The convergence of N-Type cell technology with bifacial design represents the current sweet spot in solar module development. We're not just manufacturing products; we're delivering solutions that address real-world challenges faced by project developers in optimizing land use and maximizing energy density." The Sonepat location was selected after comprehensive analysis of logistics, infrastructure, and talent availability. Haryana's industrial ecosystem provides access to skilled manufacturing workforce while ensuring proximity to key markets in northern India. The state's supportive industrial policies and robust infrastructure development further enhance the facility's long-term viability. HVR Solar's expansion occurs against the backdrop of India's evolving solar manufacturing landscape. The implementation of ALMM regulations and PLI incentives has catalyzed domestic manufacturing growth, while rising global trade tensions have created opportunities for Indian manufacturers to capture market share previously dominated by Chinese suppliers. The company's technology roadmap extends beyond current N-Type Topcon offerings, with research and development initiatives exploring heterojunction technology & Solar Cells Manufacturing in near future. This forward-looking approach positions HVR Solar to adapt to evolving technology paradigms in the rapidly advancing photovoltaics sector. Manufacturing operations will incorporate Industry 4.0 principles, including automated quality control systems, predictive maintenance protocols, and real-time production optimization. These capabilities are essential for maintaining consistent product quality while achieving competitive manufacturing costs in the global market. The facility's design emphasizes flexibility and scalability, enabling rapid adaptation to changing market demands and technology evolution. Modular production lines can be reconfigured to accommodate different cell sizes and module configurations, ensuring long-term asset utilization despite technological uncertainties. Market dynamics favor high-efficiency module adoption, with utility-scale developers increasingly prioritizing energy density over initial cost considerations. This trend, combined with declining balance-of-system costs, creates favorable conditions for premium module technologies like N-Type Topcon bifacial designs. HVR Solar's strategic positioning targets the intersection of technological advancement and market opportunity, leveraging India's manufacturing cost advantages while delivering performance capabilities that meet global standards. The initiative represents a calculated bet on technology leadership as a sustainable competitive advantage in the commoditizing solar module market. For more information please visit:
Indian Express
22-06-2025
- Business
- Indian Express
China's solar grip tightens — Cell imports more than double; module imports barely dip despite curbs
India's imports of solar photovoltaic (PV) cells from China — for assembly into modules or panels — jumped 141 per cent, from around 1.89 billion units in 2023-24 (FY24) to 4.55 billion in FY25, official trade data shows. Imports of PV cells assembled into modules dipped only 2 per cent, from 35.98 million to 35.26 million panels, despite the Approved List of Models and Manufacturers (ALMM) order restricting the use of imported modules in most utility-scale and rooftop solar projects from April 1, 2024. India's solar module manufacturing capacity has surged from 38 gigawatt (GW) in March 2024 to 91 GW now, the Ministry of New and Renewable Energy (MNRE) told The Indian Express. 'The increase in domestic solar PV module manufacturing capacity seems to have contributed to increase in import of solar PV cells,' the ministry said. While India's solar cell manufacturing capacity has also grown — from 9 GW in March 2024 to 25 GW now — it still falls short of meeting the total demand for modules. The MNRE, which reimposed the ALMM order in FY25 after keeping it in abeyance during FY24, added that 'several exemptions' exist under the order. These include projects where the last bid submission date was before April 10, 2021, certain net metering projects applied for before October 2022, behind-the-meter captive projects, and solar installations for the production of export-oriented green hydrogen. 'Despite ALMM being in force, these exemptions seem to be the reason for continued import of solar PV modules,' the ministry said. In a letter dated March 3, 2025, the MNRE asked state governments to strictly enforce the ALMM order for solar PV modules, except in cases where projects qualify for exemptions listed above or have been specifically exempted by the ministry or an authorised agency. Overall, solar cell imports rose 88 per cent — from 2.69 billion units worth Rs 15,335 crore in FY24 to 5.06 billion units worth Rs 13,905 crore in FY25 — as China's share increased from 70 to 90 per cent. Module imports, meanwhile, fell 15 per cent, from 48.48 million panels (Rs 36,134 crore) to 40.99 million (Rs 18,263 crore). Domestic cell capacity expected to surge Typically, solar cells are manufactured using wafers made from polysilicon ingots. By 2030, India aims to ramp up its solar cell manufacturing capacity to 100 GW and wafer capacity to 40 GW — a steep rise from the current 2 GW. Amit Paithankar, chief executive officer at Waaree Energies Ltd, India's largest solar module manufacturer, said there will be 'a substantial growth in cell capacity' in the coming years. 'Module manufacturing has taken off because ALMM for modules was introduced earlier and has been steadily enforced. ALMM for cells is also coming next year – that is the stated policy. So, in a very steadfast manner, cell production will keep increasing and the import content of cells will keep going down,' he told The Indian Express. The ALMM order for solar PV cells will take effect from June 1, 2026. 'When you put ALMM for modules, there's a wave — massive capacity gets set up in 2-2.5 years. Then, with ALMM for cells, too, you'll see a wave. There will always be a time shift. When there's an ALMM for ingots and wafers, you'll see a similar wave happen,' Paithankar added. A key challenge to scaling up domestic cell manufacturing, however, is sustained price dumping from China. While cell imports from China rose 141 per cent in quantity between FY24 and FY25, their value increased only 34 per cent — indicating a sharp fall in per-unit prices. The Directorate General of Trade Remedies (DGTR), India's trade watchdog, is currently investigating an anti-dumping case on Chinese solar cell imports. Sujoy Ghosh, managing director of First Solar India, which along with other manufacturers initiated the DGTR investigation, said, 'Multiple governments have found evidence of Chinese companies using anti-competitive measures, including dumping, to decimate international competition. Our view is that dumping, whether from China or through its Belt and Road Initiative partners in Southeast Asia, undermines India's goal of securing its energy technology supply chains, and must be investigated and firmly addressed.' 'The consequences of China's systemic overcapacity are plain to see from the financials of the largest Chinese solar manufacturers. Moreover, their financial results also appear to reflect the practice of selling products at prices below their cost of production,' he added. In recent quarters, several Chinese solar companies have reported heavy losses amid industry overcapacity and softening demand. Government and industry sources say another challenge in fully integrating the polysilicon-to-cell value chain is China's dominance in wafer-making equipment, which remains restricted for export to India. Sumant Sinha, chief executive of ReNew, said a solution is possible through a 'G2G (government-to-government) conversation' and that it is 'impractical' to make the equipment in India as of now. Paithankar said there is strong collaboration between various companies in India, China, and elsewhere when it comes to equipment. 'While we have good relationships with companies in China, we're also constantly looking at how to diversify that part of the supply chain,' he added. As an example of efforts to look beyond China, Vinay Rustagi, chief business officer at Premier Energies Ltd, said the company is setting up a 2 GW wafer manufacturing plant through a joint venture with Taiwan's SAS, among the world's largest silicon wafer manufacturers. Some manufacturers are using alternative technologies. 'First Solar doesn't rely on the crystalline silicon ecosystem that is currently monopolized in China, and we have invested in creating our own manufacturing ecosystem over the past 25 years… As a matter of fact, it took us just 19 months to build 3.3 gigawatts of vertically integrated nameplate manufacturing capacity,' Ghosh said. The Arizona-headquartered company, which operates a plant in Chennai, manufactures CdTe thin-film PV modules using a differentiated semiconductor and production process. 'Our advanced, highly differentiated manufacturing process allows us to transform a sheet of glass into ready-to-ship thin film solar panels in approximately four hours,' Ghosh said. Aggam Walia is a Correspondent at The Indian Express, reporting on power, renewables, and mining. His work unpacks intricate ties between corporations, government, and policy, often relying on documents sourced via the RTI Act. Off the beat, he enjoys running through Delhi's parks and forests, walking to places, and cooking pasta. ... Read More
Indian Express
17-06-2025
- Business
- Indian Express
Is Waaree Energies the next green energy multibagger?
The renewable energy cycle that began in 2023 made Suzlon Energy, Inox Wind Energy, and KPI Green Energy multibaggers. These stocks rose 700%, 1,200%, and 600%, respectively, between 2023 and 2024. The green energy wave also made way for green energy IPOs in 2024. A prominent name among them was Waaree Energies. While Suzlon is India's largest wind turbine manufacturer, Waaree is India's largest solar module manufacturer with a 14.1% market share as of Q1 FY26. Waaree is walking on Suzlon's path to become a vertically integrated solar energy company that not only manufactures solar modules but also solar cells, grid inverters, and solar products, and constructs, operates, and maintains solar farms. The company is moving a step further to become a solar Independent Power Producer (IPP). While Waaree and Suzlon have similarities, their operating style are starkly opposite. Suzlon is expanding conservatively, focusing on the domestic market. Waaree, on the other hand, is expanding aggressively in India and the United States to tap the solar opportunity. Can Waaree Energies be the next multibagger in the solar space? Let's find out. Waaree Energies increased its solar photovoltaic (PV) module capacity sevenfold from 2 gigawatt (GW) in FY21 to 15GW in FY24 as orders flowed in. The company made its debut on the stock exchange in October 2024 and raised Rs 4,321 crore to fund its backward and forward integration strategy and become an integrated energy player. It is expanding horizontally and vertically organically and through acquisitions. Over the years, Waaree perfected its solar PV modules to meet the most stringent global quality and performance standards. Today, Waaree accounts for 44% of PV module exports from India and 21% of domestic consumption. It expanded its module manufacturing capacity last year by acquiring IndoSolar and aims to add another 4.8 GW capacity by FY27. It even expanded in the US, bringing into operation its 1.6 GW module manufacturing facility in Texas in January 2025. The company plans to expand this facility to 3.2GW by FY26 and add a battery energy storage systems plant by 2028. Waaree Energies is also expanding vertically. In backward integration, it manufactures cells, ingots, wafers, battery storage, and green hydrogen electrolysers. This backward integration capacity operates on a book-and-ship model where execution is fast and generates quick revenue. The company builds a factory only after it has a sufficient order book, ensuring capacity utilisation. Its 5.4GW cell factory at Chikhli, Gujarat, is operating at more than 90% capacity due to a strong order book. Waaree expects volume orders once the government implements the Approved List of Models and Manufacturers (ALMM) for cells from June 2026 onwards. It is also acquiring Kamath Transformers for Rs 293 crore and expects to complete the deal in FY26. In its forward integration strategy, Waaree has expanded into inverters, Engineering, Procurement, and Construction (EPC) services, and power infrastructure. It is acquiring Enel Green Power India Private Limited (EGPIPL) for Rs 792 crore to expand its IPP business, and a non-operating company, Green New Delhi Forever Energy Pvt Ltd, to hold specific power projects under the IPP framework. EPC and power infrastructure projects have longer execution times and higher working capital requirements, which leads to a higher debt level. To ensure efficient execution of all businesses across the value chain, Waaree Energies has built a comprehensive structure of eight companies. Of the eight subsidiaries, its EPC arm, Waaree Renewable Technologies, is listed on the stock exchange. Waaree Energies' Subsidiaries Across the Value Chain Waaree Energies is chasing a pipeline of around 100 GW modules, and Waaree Renewable Technologies is chasing around 30 GW of EPC contracts. Waaree has signed a power purchase agreement with Rewa Ultra Mega Solar and Madhya Pradesh Power Management Company to supply 150 MW of solar power. Such aggressive expansion is part of Waaree's broader strategy of controlling EBITDA in a cyclical and volatile renewable energy market. Waaree Energies Financial Highlights (FY23-FY26) Waaree Energies Fundamentals FY23 FY24 FY25 Revenue (Rs Crore) 6,751 11,398 14,444 YoY Growth 137% 69% 27% EBITDA Margin 15.56% 21.04% Source: Waaree Energies Earnings Presentation Raw materials make up 68% of Waaree's total operating expenses. It is looking to improve EBITDA by reducing raw material costs through backward integration. Traditionally, the company sourced solar cells for 11.5-14 cents, which will reduce to 7-8 cents when it makes its cells, said Sonal Shrivastava, CFO of Waaree Energies, in the Q4 FY25 earnings call. The uncertainty around demand and the certainty around cost make it logical for Waaree to focus on EBITDA. The decision on what the company manufactures and how much will boil down to EBITDA. For FY26, the company expects to grow EBITDA by 76-92% to Rs 5,500-6,000 crore. This guidance is backed by its Rs 47,000 crore order book, which gives a three-year revenue visibility. This order book comprises 25GW of modules and 3.2GW of EPC orders. Around 57% of orders are from overseas, and the remaining 43% are from India. However, the company sees 80% of its FY26 revenue to come from India and 20% from overseas. This gap in revenue and order book shows the company will continue to tap domestic retail and utility orders with an execution timeline of two months to 12 months in FY26 and FY27. Beyond FY27, the overseas orders with an execution timeline of 1 year, 2 years, and 2.5 years could take a larger share. Uncertainty has been brewing in the US market since November 2024, when Donald Trump was elected the President. His stance on green energy created uncertainties around India's renewable energy exports. Since Waaree's 58% of FY24 revenue came from exports, the stock was particularly hit. The tax bill passed on May 22 will pause the 30% federal tax credit households get on rooftop solar in 2025 and phase down other subsidies in 2028 instead of 2029. What others see as a threat, Waaree Energies sees as an opportunity. The company's CEO, Amit Paithankar, noted that tax credit restrictions are on products linked to 'foreign entities of concern (FEOC),' mainly China. This restriction puts Waaree at an advantage to replace FEOC. The US opportunity was visible in June 2025 as Waaree Energies secured a 599 MW solar module supply order in the US over and above the 586 MW solar modules contract, bringing new US deals in the first quarter of FY26 to around 1,200 MW. Paithankar is also optimistic about discussions between India and the US over resolving the tariff situation. These policy changes could delay the US order execution by a year or two, but not cancel it, as most of them are long-term contracts and Waaree has already received advance payments. In the meantime, the company looks to offset weak international demand with strong domestic demand as it did in FY25, increasing its revenue by 27% and improving its EBITDA margin to 21% from 15.5% a year ago. Despite policy changes, the US remains a key market for Waaree from a long-term perspective as the country is home to some of the biggest data centres in the world. Big Tech is investing billions of dollars in artificial intelligence (AI)-enabled data centres, which consume more electricity. According to an International Energy Agency report, almost half of the growth in US electricity demand by 2030 will come from data centres. Data Centre Electricity Consumption by Region 2020-2030 Waaree believes an AI data centre could accelerate the adoption of clean energy, presenting an opportunity for solar energy to power these centres. Waaree Energies' share price rose 55% between October 24 and November 4, 2024, but reversed course after Trump was elected. The next growth cycle of over 40% was also short-lived when Trump paused retaliatory tariffs. The US policy uncertainty has slowed its sales and earnings growth. The stock is trading at a price-to-earnings ratio of 43.6x, lower than Premier Energies' 48.7x. Brokerages have a mixed rating on Waaree Energies as weak exports and high capex keep its free cash flow negative. Analyst Ratings on Waaree Energies Post FY25 Earnings Analyst Rating Price target post FY25 earnings (Rs) Previous Target (Rs) Upside from market price Rs 2,840 Rating Nuvama Institutional Equities 3,622 2,805 28% Buy Jefferies 2,100 2,030 -26% Underperform Cholamandalam Securities 3,600 27% Buy Kotak Institutional Equities 2,600 -8% Sell Source: Brokerage reports Solar plays an important role in India's renewable energy story, and Waaree is well-positioned to tap this growth. Most multibaggers were beneficiaries of a demand spurt from the product-linked incentive (PLI) scheme, government subsidies, strong execution, and operational efficiencies. Waaree Energies' stock has the potential to pick up momentum once the US policy uncertainty ends. After all, the US makes up for more than half its order book. Cell manufacturing presents a growth opportunity in the domestic content requirement (DCR) space. However, increasing competition could dilute its revenue growth rate. To become a multibagger, Waaree needs the secular trend of solar power demand from AI data centers to materialise. An order win from a data centre, especially from a global tech company, could set the ball rolling for the multibagger gains. Waaree Energies is an interesting stock to add to the watchlist as its growth story is just beginning. Note: We have relied on data from throughout this article. Only in cases where the data was not available, have we used an alternate, but widely used and accepted source of information. Puja Tayal is a financial writer with over 17 years of experience in the field of fundamental research. Disclosure: The writer and his dependents do not hold the stocks discussed in this article. The website managers, its employee(s), and contributors/writers/authors of articles have or may have an outstanding buy or sell position or holding in the securities, options on securities or other related investments of issuers and/or companies discussed therein. The content of the articles and the interpretation of data are solely the personal views of the contributors/ writers/authors. Investors must make their own investment decisions based on their specific objectives, resources and only after consulting such independent advisors as may be necessary.
