Nuvama Institutional Equities has initiated coverage on Waaree Energies, a company focused on new energy, with a 'buy' recommendation and a target price of ₹2,805 per share, signaling a 25% upside. The company's long-term strategy aims at becoming a vertically and horizontally integrated New Energy player, expanding into green hydrogen, electrolysers, li-ion cells, inverters, and BESS to drive exponential growth. The brokerage sees India's New Energy sector as a significant opportunity akin to the Y2K technology boom, projecting immense growth potential in green hydrogen and green ammonia. Nuvama forecasts an EBITDA CAGR of 54% till FY27E for Waaree Energies, driven by capacity expansion, backward integration, and government support through ALMM and DCR mandates. The brokerage predicts a surge in EBITDA margin to 23% by FY27E, with a peak at 24% by FY28E. Nuvama highlights potential risks such as import tariff cuts and technological upgrades, but remains optimistic about Waaree's growth trajectory. The brokerage's target price varies based on the CAGR scenario, with a target of ₹3,844/share in a high-growth situation. Overall, Nuvama's positive outlook on Waaree Energies reflects strong potential for growth and market leadership in the renewable energy and green hydrogen sectors.