Waaree Energies Share Price Rises After Solar Firm Denies Impact of US Duties: Should You Buy, Or Sell?

Waaree Energies Share Price Today: Shares of Waaree Energies trimmed losses during Thursday's intraday trading session despite concerns about the United States' preliminary countervailing duty of nearly 126% on shipments from India. While certain solar stocks continued to slump, Waaree Energies emerged as an exception after its management clarified that the US duty is unlikely to impact the company.

Waaree Energies shares were trading 0.44% higher at Rs 2720.50 per share on BSE with a market capitalisation of Rs 78,252.71 crore at 1:35 pm. The stock had touched an intraday low of Rs 2705 per share and an intraday high of Rs 2759.95 per share.

Waaree Energies Share Price Recommendation

While the US has imposed a hefty duty on imports of solar products from India, Waaree Energies relies on solar products sourced from other countries. Waaree does not use Indian or any affected country's cells for its US supplies, and instead sources from other countries where the US duty is lower, at ~10%.

Hence, Emkay Research has maintained a 'Buy' rating for the solar stock. Waaree Energies has increased its US supplies, supported by diversified, FEOC-compliant sourcing while expanding its US capabilities, including 1GW in Arizona (acquired) and 1.6GW expansion in Texas.

Waaree Energies Share Price Target

Emkay Research has maintained a 'Buy' rating with a target price of Rs 4,260 per share. "With its diversified non-China sourcing (right from polysilicon), Waaree is well placed in the US, which is a key long-term focus market," noted Emkay. We retain our estimates; reiterate BUY with TP of Rs4,260," noted the brokerage in its report.

US Announces Levies On Solar Imports From India

The United States, on February 24, imposed a preliminary countervailing duty of nearly 126% shipments from India. The duty was announced after its trade authority made a preliminary fiumding that Indian manufacturers received unfair government subsidies.

What is Countervailing Duty?

A countervailing duty is imposed to offset subsidies provided by foreign governments that allegedly give exporters an unfair pricing advantage in the importing country.

The US Department of Commerce's 126% tariff on Indian solar products came after two Adani Group companies, Mundra Solar Energy and Mundra Solar PV, withdrew from investigation proceedings, reported Indian Express citing a preliminary anti-subsidy investigation documents. As per IE report, the Adani Group companies were 'mandatory respondents' in the proceedings and their non-coooperation triggered 'Adverse Facts Available' penalty.

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