Post on Waaree Energies and the Renewable Energy Sector coming soon!

Will breakdown **Waaree Energies business model using a comprehensive checklist framework** and compare Waaree energies with global leaders like **First Solar** and **LONGi Solar** to see where it stand. You’ll get detailed insights into the renewable energy sector and industry, helping you make your own informed decision. Checklist Overview * **Economies of Scale**  * **Strong Moat**  * **High ROCE (Return on Capital Employed)**  * **High Free Cash Flow (FCF)**  * **Reasonable PE Ratio**  * **High Margin Business**  * **Pricing Power**  * **Low Capital-Intensive Business**  * **Founder-Led Culture & Leadership**  * **Reinvestment Opportunities**  * **Growth through Acquisition**  * **Consistent EPS Growth**  * **Strong Balance Sheet**  * **Longevity & Innovation**  * **Promoter’s Skin in the Game**  * **Avoiding Commodities & Poor-Quality Businesses**  * **Simplicity & Understandable Business Model**  Here’s a sneak peek of our upcoming research, going live soon! Stay tuned! **Economies of Scale Profile -- Moderate.** **Waaree Energies is India’s largest manufacturer of solar PV modules** with the largest aggregate **Installed capacity of 13.3 GW** (Source: CRISIL Report) and a proposed capacity of 20.9 GW by FY 2026-27.(Annual report).Waaree has a **25-30% in the domestic solar module market and 44% market share in exports.**  **Global Peers' Scale**  * **LONGi Solar** world’s largest manufacturers with over **50 GW of module production**.They dominate the global solar module market, especially with high-efficiency PERC (Passivated Emitter and Rear Contact) and bifacial modules. * **Trina Solar** Global capacity of **20 GW+** * **First Solar(American)** Has a **12 GW+ capacity** with a focus on thin-film technology. China Insights **China accounts for more than 80 per cent of production in all manufacturing stages (such as polysilicon, ingots, wafers, cells and modules) of solar panels.**  The production cost of solar modules in China stands at around $0.15 / watt (around Rs 12.5), which is significantly cheaper compared to other major countries. In fact, **the cost of solar PV components produced in China is around 10 per cent lower than in India,** 20 per cent lower than in the United States, and 35 per cent lower than in Europe. Solar module production is a  **energy-intensive processes** and Chinese electricity prices are about 30 per cent below global average. Another factor contributing to the reduced costs is **China’s stronghold on rare earth elements** that are essential for clean renewable energy technology.  All these factors lead to reduced costs of production over time, and some **reports estimate that module production costs in China have decreased up to 42 per cent between December 2022 to December 2023 alone.** **How has the production costs of solar modules in India evolved over the past few years?** According to Mercom India’s *India Solar Market Update Q1 2024*, **the average price of Chinese manufactured monocrystalline PERC solar modules fell by 48.3 per cent, while Indian ones saw a 41.7 per cent reduction — China leading by almost a 6.5 per cent difference.**  **India faces higher raw material costs(quadrupling of the price of Polysilicon.since 2020)**, with domestic solar modules being around 10 per cent more expensive than imported ones.**While an imported module retails for $0.16-0.17 / watt (roughly Rs 13-14 / watt), domestic modules are priced at about $0.27 (around Rs 23 / watt) in India.**   **While Waaree has a competitive scale in India, its global footprint is limited, and its capacity is much smaller compared to industry leaders**. It faces pressure in cost competitiveness due to the dominance of Chinese manufacturers like LONGi and Trina. **So the scale advantages do not translate into margin expansion and strengthening of Moat** as solar pv modules are basically commodity and the prices depend on market forces of demand and supply. Recently the prices have plummeted and this has led to decline in prices of global listed players who have 5 times the scale of saree by 50 to 70%. **World stuck in major solar panel 'supply glut'; module prices plummet: IEA** [**https://www.spglobal.com/commodity-insights/en/news-research/latest-news/electric-power/011224-world-stuck-in-major-solar-panel-supply-glut-module-prices-plummet-iea**](https://www.spglobal.com/commodity-insights/en/news-research/latest-news/electric-power/011224-world-stuck-in-major-solar-panel-supply-glut-module-prices-plummet-iea) Drop a comment below, and the post will be up in the next 24 hours!You can also check out our previous research already uploaded on r/IndiaGrowthStocks .