Waaree Energies and Premier Energies Shares fell sharply on Friday, mirroring a steep selloff in US solar and clean energy stocks after the US House of Representatives passed a controversial tax bill backed by President Donald Trump.
Waaree Energies declined 11% to an intraday low of Rs 2,666 on the BSE, while Premier Energies slipped over 6% to Rs 1,017.5.
Shares of Waaree Energies Ltd. and Premier Energies Ltd. declined on Friday, following the US House of Representatives’ narrow approval of President Donald Trump’s new tax proposal, dubbed the ‘One Big, Beautiful Bill’. The bill, which passed by a slim 215-214 margin, could have significant ramifications for the global clean energy sector, particularly solar energy.
The legislation proposes an accelerated phase-out of key clean energy incentives, including the investment and production tax credits that have underpinned solar and renewable energy growth in the United States. If passed by the Senate, it could substantially reduce support for utility-scale and rooftop solar installations.
Notably, the bill seeks to abolish the 30% federal tax credit currently available to individuals who install solar rooftop systems. It also aims to repeal grants designed to combat air pollution, cut greenhouse gas emissions, and fund electric heavy-duty vehicle purchases. Additionally, it introduces tighter compliance measures under the Foreign Entities of Concern rule.
For Waaree Energies, the development poses a potential headwind. The company derives 57% of its order book from the US, making it particularly sensitive to policy shifts in that market. While the extension of the 45 times manufacturing tax credit through 2031 offers some reprieve for Waaree’s planned US operations, the overall export opportunity could diminish sooner than expected.
click on this link to know more detail about this postPremier Energies, in contrast, is likely to see a limited short-term impact. Currently, only 3% of its revenue stems from exports. However, its plans to set up a 1.2 GW solar cell manufacturing facility in the US may now be at risk, as policy uncertainty increases and incentives potentially dry up.
While the shares of Waaree Energies fell 11.11% to Rs 2,664, Premier Energies shares were down 5.34% to Rs 1,025.60 per share. The shares pared losses with Waaree Energies and Premier Energies trading 8.21% and 3.49% lower, respectively at 10:12 a.m. This compares to a 0.82% advance in the NSE Nifty 50.
Shares of Waaree Energies have fallen nearly 6% year-to-date, while Premier Energies is down 23.88%.
What is Waaree Energies Limited company?
Waaree Energies Limited, founded in 1990 and headquartered in Mumbai, India, is the country’s largest solar module manufacturer, with an aggregate installed capacity of 13.3 GW as of June 30, 2024. Our manufacturing facilities are located in Chikhli, Surat, Tumb, Nandigram in Gujarat, and Noida.
Is Waaree Energies a good buy?
Nuvama initiated coverage on Waaree Energies with a “buy” recommendation and a price target of ₹2,805, which implies a potential upside of 25% from current levels.
Why did Waaree Energies share falling?
Shares of Waaree Energies and Premier Energies fell sharply, reflecting the decline in US solar stocks due to a proposed tax bill by Trump that may repeal clean energy subsidies. This poses a significant risk for Indian solar firms reliant on US markets.
What is the future of Waaree Energies Ltd?
Kotak has a price target of ₹2,550 for Waaree Energies. The brokerage said that it has a ‘Sell’ rating on Waaree also due to elevated valuations and it expects a 35% earnings CAGR between financial year 2024-2030. For Waaree, this is the second analyst coverage after listing.
Who is the CEO of Waaree?
Amit Paithankar, CEO of Waaree Energies Ltd, spoke about how AI boosts solar panel efficiency by detecting manufacturing faults
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