14,185 per cent returns and 1:5 stock split: Renewable energy small-cap multibagger announces bumper results; locked at upper circuit!

As of December 31, 2023, the unexecuted order book stands at 749+ MW. Additionally, the company has signed a collaboration agreement with "5B Maverick Services PTY Ltd." and has secured a 70MW capacity ground-mounted solar power project.

The ongoing earnings season has gained momentum, with a particular focus on Small-Cap stocks. One such stock that has flown under the radar but delivered exceptional results is Waaree Renewables Technologies Ltd. With a market capitalization of Rs 5,969 crore, the stock surged to an upper circuit limit of 5 per cent, closing at Rs 2,865.55.

Waaree Renewables Technologies Ltd, a subsidiary of the Waaree Group, is a key player in the Solar EPC business. The parent company, Waaree Group, boasts a remarkable track record, having successfully installed over 10,000 solar projects, accumulating to a substantial 1.2+ GW in installations. Headquartered in Mumbai, Waaree Group operates globally, concentrating on long-term investments in the commercial and industrial customer segments. This subsidiary was strategically formed to tap into the burgeoning renewable energy market.

In Q3FY24, Waaree Renewables reported an impressive 338.78 per cent YoY growth in consolidated revenue, reaching Rs 324.19 crore. EBITDA also showed robust growth, advancing by 145.30 per cent YoY to Rs 87.81 crore, while PAT surged by an impressive 158.09 per cent YoY to Rs 64.46 crore. As of December 31, 2023, the unexecuted order book stands at 749+ MW. Additionally, the company has signed a collaboration agreement with "5B Maverick Services PTY Ltd." and has secured a 70MW capacity ground-mounted solar power project.

An intriguing development is the board's announcement of a corporate action - a stock split with a face value of equity shares in the ratio of 1:5 per share, subject to shareholder approval.

India's Renewable Energy sector continues to be a linchpin in the country's pursuit of sustainable growth and energy security. As of August 2023, solar energy contributes a commendable 17 per cent to the installed power generation capacity, a substantial increase from 2.8 per cent in FY19 to 6.3 per cent in FY23 in power consumption. In line with the government's commitment to achieving a net-zero emissions target by 2070, India's solar energy sector remains at the forefront of renewable energy advancements. Key policies such as the Solar Park Scheme, PM KUSUM, Grid Connected Solar Rooftop Schemes, and other initiatives underscore the nation's dedication to expanding renewable energy sources.

The stock has experienced a remarkable surge, jumping by 494.88 per cent in the last year. Over the past three years, the company has delivered staggering returns of 14,184.90 per cent, solidifying its status as a mega multibagger stock.

To put this into perspective, an investment of Rs 10,000 in this stock three years ago would have translated to acquiring approximately 455 shares. The same investment would have grown to about Rs 13,04,000 in just three years, showcasing an astonishing financial journey.

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