Waaree Energies up 3% on order win, strategic green hydrogen expansion

Waaree Energies share price rose 3 per cent to the day's high of ₹3,003.7 per share on the National Stock Exchange (NSE) in Tuesday's intra-day trade.

Waaree Energies share price today

Shares of Waaree Energies experienced buying momentum on Tuesday following a order win and strategic collaboration in the green hydrogen space. The stock rose 3 per cent to the day’s high of ₹3,003.7 per share on the National Stock Exchange (NSE). 

 

As of 2:20 PM, Waaree Energies share price was trading 2.5 per cent higher at ₹2,990.50, as compared to a 1.1 per cent decline in the Nifty 50 index. Around 1.6 million shares of the company changed hands on NSE so far. 

 

In the last 12 months, Waaree Energies share price rose 33.8 per cent, as compared to a 1.4 per cent decline in the Nifty 50 index. 

 

 

Why did Waaree Energies share price rise today?

The buying activity in Waaree Energies shares was fueled by a major solar module supply contract and a strategic expansion in the green hydrogen sector through its subsidiary.

 

Order win

 

The company secured a supply order for its solar modules from a renowned customer who is a solar power developer and engaged in the business of an independent power producer, Waaree Energies said in an exchange filing. 

 

As part of the order, Waaree Energies will supply 500 megawatt solar modules in the financial year 2027. It is a one-time order. 

 

Waaree Energies did not disclose the name of the orderer. 

 

Collaboration with Zero Footprint Industries

 

Waaree Energies’ wholly-owned subsidiary, Waaree Clean Energy Solutions Private Limited signed an electrolyser as a service (EAAS) agreement with Zero Footprint Industries for a 2.5 megawatt (MW) Alkaline Electrolyser for the latter's planned capacity addition for green hydrogen in Uttar Pradesh. 

 

Waaree Clean Energy Solutions also signed a memorandum of understanding (MoU) with Zero Footprint Industries to supply 50 megawatts of electrolysers through the EAAS route for its multiple decentralised small green hydrogen projects across North India. 

 

At its Dungri plant in Gujarat, Waaree Clean Energy Solutions will design, engineer, supply, install, commission, own and operate a 2.5 MW alkaline electrolyser systems. The company will also supply hydrogen and oxygen to Zero Footprint Industries for its expansion in Uttar Pradesh under a long-term contract of 15 years.

 

The project will produce 4.1 million normal cubic metre (NM³) of green hydrogen and a 2.0 million of NM³ of green oxygen annually. This will help in providing a cost-neutral alternative to grey hydrogen to Zero Footprint Industries’ customers in mentha oil, chemical, steel, and pharma industries, Waaree Energies said in the press release. 

 

Analyst view

 

Waaree Energies continues to demonstrate strategic momentum across its core solar PV manufacturing and broader clean energy portfolio. The company’s recent 500 MW module supply order underlines sustained demand in both domestic and IPP segments.  However, valuation and execution on large capex projects will be key to future earnings delivery, said Harshal Dasani, business head, INVAsset PMS.

 

The most recent profit-taking from the ₹3,214 levels found support in the gap zone created during the February 3 rally. At the current juncture, Waaree Energies is showing initial signs of price stability and seems to be heading towards ₹3,200 levels. A decisive close above ₹3,200 will open the floor for a further upward move towards ₹3,500 levels, said Vipin Kumar, assistant vice president, technical and derivatives research at Globe Market.  

==============

Disclaimer: View and outlook shared belong to the respective brokerages/analysts and are not endorsed by Business Standard. Readers discretion is advised.