Suzlon Energy vs Waaree Energies: India is heavily investing in renewable energy sectors to achieve a target of generating 500 GW renewable energy by 2030 along with net zero emissions by 2070. Many big players have already stepped into the renewable energy sector and are taking advantage of this huge investment by the government. Suzlon Energy and Waaree Energies are two such Companies who have emerged as key players in the renewable energy sector. Although both the companies are working in different segments, both companies are poised for significant growth in the future. Suzlon Energy works in wind energy while Waaree in Solar Energy but the real question is which company has a higher potential upside? Let’s know in detail.
Suzlon Energy and Waaree Energies: Both King and Rising Star of India
Suzlon Energy is the king of India’s wind energy producer. Suzlon is the largest wind turbine maker of India and Waaree Energies the rising superstar and India’s largest solar photovoltaic (PV) module manufacturer.
While Suzlon Energy and Waaree Energies are working for the same goal and benefiting from the Green Energy mission of India, analysts’ opinion differs on these stocks. Both the companies have different growth stories and both deal with different sets of challenges. Let’s take a closer look:
Suzlon Energy
Incorporated in 1995, Suzlon debuted on the stock market in 2005. The company peaked its all time high in 2008 and expanded its business aggressively. In 2019, the company saw its downfall after defaulting on debt. However, Suzlon is now adopting a different approach to maintain profit margin stability.
Suzlon Energy is the king of India’s wind energy with a market share of 31% overshadowing Inox Wind, Tata Power, Enercon, and Vestas Wind Systems. Suzlon’s biggest challenge is solar energy as the company’s installation of wind turbines costs a lot compared to solar energy.
In addition, the government is also much focused on solar energy because it is simpler and less expensive to set up a solar energy plant. This challenge has a great impact on Suzlon’s order book as well. The company received orders totaling Rs 12,714 crore in 2017 which dropped to Rs 2,973 crore by 2020.
Also Read: Suzlon Energy Share Price Target 2025 to 2050
Waaree Energies:
Incorporated in 1990, Waaree Energies is the new rising star of India’s Solar Energy Sector. The company made a notable capacity expansion from 2GW to 12GW between 2021 to 2024. Waaree Energies made its IPO debut in October 2024 with a fresh issue of Rs 4,321 crore capital. Waaree Energies is the leader of Solar PV module manufacturing in India and expanding its business fast.
Waaree Energies is leading both the domestic and export market with 21% and 44% market share respectively. However, the biggest challenge for Waaree Energies is that the solar energy segment is highly competitive and PV module prices are falling continuously. Apart from that big players like Adani Group and Reliance is likely to step into solar energy segment, which can be a bigger challenges for Waaree.
Stock price momentum
Suzlon Energy stock rallied nearly 880% touching a 15 year high of Rs 86 in 2024. Despite stellar Q3 Results, Suzlon has experienced massive corrections in the stock price amid broader market weakness.
Similarly Waaree Energies made a impressive debut with its IPO and touched a high of Rs 3,743 however the stock saw decent correction and now it is trading at Rs 2,099 after Donald Trump’s new tariff regulations.
Suzlon Energy vs Waaree Energies: Which has a Better Upside Potential?
When comparing the two companies, Suzlon’s PE ratio is 61.04 compared to Waaree Energys PE ratio at 48.21. This indicates that Suzlon is still overpriced. However, Suzlon has stable profitability and stable profit margins, while Waaree Energies’ aggressive expansion strategy offers bigger rewards with reduced risk.
Backed by strong order book, Suzlon appears stronger for short-term growth as its profit and revenue growth are stable. Waaree Energies has more potential in the long term as its expansion plan is ambitious and the government is increasingly interested in the solar sector.
However both the companies are doing well in their respective filed and massive potential, Investors should keep an close eye on both the stock.
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