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Tell me your best earning stocks in last one year and what was thought process while buying it?
My Stock Market Experience When I buy stocks, I first look at key metrics like market capitalization, price-to-earnings ratio, and recent news, especially about new orders or developments related to the stock. After this analysis, I rely on my instincts to make a final decision. While I often make profits, there are times when I incur losses. However, over the last six months, my losses have outweighed my gains. One stock where I had an interesting experience was Waaree Energies. My Journey with Waaree Energies I initially invested in this stock during its IPO. After receiving some shares in the IPO allotment, I bought additional shares on the listing day. I sold all my holdings at ₹2,500 a few days later. However, the stock rallied further to ₹3,800, leaving me regretting my early exit. Later, when Donald Trump was elected as the U.S. President, the stock saw a downturn due to his policies. Trump frequently expressed his intent to impose duties on imports from China and India, impacting the renewable energy sector. I began buying the stock at ₹3,000, averaging down to ₹2,600, which brought my overall purchase price to ₹2,800. Eventually, I sold my holdings at ₹3,340, making a substantial profit. Why I Chose Waaree Energies I was exploring renewable energy stocks because of the increasing adoption of solar panels in households. The Indian government provides a ₹78,000 subsidy under the PM Suryaghar Yojana for installing household solar systems, which has boosted demand. Despite some concerns over the stock’s valuation, I believed in Waaree because it has the largest solar module manufacturing capacity in India. My bet paid off. An Important Learning While I profited, I discovered that Waaree primarily generates revenue through exports rather than domestic household solar installations. This is because the government subsidy of ₹78,000 applies only to solar systems that comply with Domestic Content Requirements (DCR). When I explored installing a solar system for my household, I was surprised that the installer did not have Waaree panels. Despite being a market leader, Waaree did not have DCR-compliant panels in the widely preferred N-type TOPCon bifacial technology. Currently, Waaree has introduced DCR-compliant panels but still lags in some advanced technologies. I believe the company will eventually produce the best panels in the industry. If the government relaxes DCR compliance rules, Waaree’s stock price could skyrocket. My Current Outlook The recent sell-off in Waaree’s stock has created another potential buying opportunity. I’m considering reinvesting in the company as I foresee strong growth in the renewable energy sector. --- Disclaimer: This is not a recommendation to buy or sell any stock. It is purely a record of my personal experiences and observations. ---1
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