The share price of Waaree Energies Ltd experienced a sharp decline for the third consecutive trading session on Friday, reaching an all-time low. The stock dropped by 5.83%, closing at ₹2,207.35. Over three sessions, it has plummeted by a staggering 17.41%, raising investor concerns about its future trajectory.

Reasons Behind the Decline

Market experts attribute this downturn to unfavorable developments in the global green energy sector. Analysts at Kotak Institutional Equities cited the potential suspension of the Inflation Reduction Act (IRA) disbursements by the US administration as a key factor. This move is likely to impact American Independent Power Producers (IPPs) and Indian solar module manufacturers like Waaree Energies.

Policy changes in US green infrastructure funding are expected to create ripples across the renewable energy industry, posing short-term challenges for companies like Waaree Energies.

High Trading Volume Signals Investor Worries

On the BSE, trading volumes surged today, with 2.13 lakh shares being exchanged—significantly higher than the two-week average of 1.18 lakh shares. Despite a turnover of ₹48.82 crore, market sentiment remained bearish, with 1,67,003 sell orders far outweighing the 16,422 buy orders.

As a result, Waaree Energies’ market capitalization dropped to ₹64,612.86 crore, reflecting the ongoing sell-off.

Company Overview

Established in December 1990, Waaree Energies is a prominent Indian manufacturer of solar PV modules. The company boasts an impressive aggregate installed capacity of 13.3 GW and plays a vital role in India’s transition to renewable energy solutions.

Upcoming Quarterly Results

Investors are eagerly awaiting the company’s quarterly results, scheduled to be announced on January 30, 2025. These results could provide insights into the company’s performance amidst global policy challenges and potentially offer some relief to its declining stock price.

Outlook for Investors

Despite being a leader in solar module manufacturing, Waaree Energies faces significant risks due to macroeconomic and policy-related headwinds. Analysts warn that the stock may experience further pressure unless positive updates from the company or clarity on the US administration’s stance emerge.