Shares of Wari Energy rose over 2% to Rs. 2,764.5, while shares of Premier Energy rose nearly 2% in the morning trading hours on Thursday to Rs. 741.60 was traded.
The stocks tumbled yesterday after the United States President Donald Trump-led administration imposed an initial 126% duty on solar imports from India, citing unfair manufacturing subsidies.
On Motilal Oswal Solar Stocks:
Motilal Oswal Financial Services highlighted that eligibility for the 126% duty depends on the country of origin of the solar cells used in the modules supplied to the US. “In effect, the 126% tariff should apply only if the solar modules supplied to the US use solar cells manufactured in India.”
A local brokerage noted that Waaree derives one-third of its revenue from the US and does not use solar cells manufactured in India for its US supply. Hence, this initial 126% CVD is unlikely to materially impact the company’s earnings.
Premier Energies, on the other hand, has limited exposure to exports, with only 1% of its revenue coming from overseas markets, the brokerage added. Accordingly, Premier Energy also remains immune to these developments, it adds.
“From a broader industry perspective, India’s cell manufacturing capacity is ~27GW under ALMM-II (vs. module manufacturing capacity 162GW as per ALMM-I) and is still in the ramp-up phase. It is primarily oriented towards supporting incremental cell capacity plus existing domestic demand to support cell surplus. Exports, meaningfully at least till FY28,” the brokerage concluded.
MK Global on Wari Energy:
MK Global Research said yesterday’s crash was driven by significant negative sentiment for Indian solar power players after the announcement. It is noted that Waaree’s management has clarified that the latest duty is unlikely to affect the company, as the measures are determined by the country of origin of the solar cells rather than module assembly.
A local brokerage noted that solar modules made from Indian solar cells account for less than 4% of total US solar module imports, suggesting that the latest duties are unlikely to have a significant impact on the market.
Emke said the 126% CVD will likely not affect Waaree, largely supported by its diversified and FEOC-compliant sourcing.
“Wari does not use Indian or any affected country cells for its US supply, and instead sources from other countries where US duties are lower, ~10%. The company has increased its US supply, supported by diversified, FEOC-compliant sourcing, while expanding its US capacity, including 1GW (potentially 1GW and 1GW) in Arizona. Total US capacity by mid-CY26 will grow to ~4.2GW, which is sufficient to meet its current order book,” it said.
The local brokerage maintained its earnings estimate and reiterated its ‘buy’ call on the stock with a target price of Rs 4,260. This indicates an upside potential of more than 57% from the stock’s previous closing price.
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