1,06,700% Gain: India's Biggest Multibagger Stock - From Rs 1.80 to Rs 1,922; Key Trigger Explained

Among the numerous stocks that turned into multibaggers, one stock has stood out as India's biggest multibagger.

The Indian equity market has witnessed remarkable growth since the low of March 2020. Among the numerous stocks that turned into multibaggers, one stock has stood out as India's biggest multibagger: Waaree Renewables Technologies. This stock has soared from Rs 1.80 to Rs 1,922, delivering an astonishing gain of 1,06,700%.

Waaree Renewables Technologies is engaged in generating power through renewable energy sources and providing consultancy services in this sector. The company is a major player in the renewable energy space, boasting India's largest solar panel manufacturing capacity of 12 GW across its plants in Chikhli, Surat, and Umbergaon in Gujarat.

Key Triggers Behind the Phenomenal Surge:

1. Robust Financial Performance:

Waaree Renewables Technologies has showcased impressive profit growth, with a compound annual growth rate (CAGR) of 145 per cent over the past five years. Additionally, the company has maintained a strong return on equity (ROE) track record, with a three-year ROE of 87.3 per cent.

2. Sectoral Advantages:

India is a global leader in renewable energy, ranking 4th in renewable energy installed capacity (including large hydro), 4th in wind power capacity, and 5th in solar power capacity, according to the REN21 Renewables 2024 Global Status Report. The country's ambitious target of achieving 500 GW of non-fossil fuel-based energy by 2030, announced at COP26, has created a favorable environment for renewable energy companies like Waaree.

3. Significant Order Book:

Waaree Renewables Technologies boasts a robust order book of 2.3 GW.

4. Outstanding Financial Growth:

For the full year FY24, Waaree reported revenue of Rs 876.44 crore, marking a year-on-year growth of 149 per cent from Rs 350 crore in FY23. The EBITDA for FY24 stood at Rs 207 crore, up 147 per cent from Rs 83.75 crore in FY23. The profit after tax (PAT) for FY24 was Rs 148 crore, a 167 per cent increase from Rs 55.33 crore in FY23.

Conclusion:

Waaree Renewables Technologies has emerged as India's biggest multibagger stock due to its exceptional financial performance, strategic positioning in the renewable energy sector, and effective execution of its order book. The company's ability to capitalize on government initiatives and sectoral growth opportunities has played a crucial role in its meteoric rise from a penny stock to a multibagger.

Disclaimer: The article is for informational purposes only and not investment advice.