Waaree Energies Shares Down After US Probes Alleged Tariff Evasion
Waaree Energies Ltd. share price fell nearly 5% during early trade on Friday after a report said the US is investigating whether India’s largest solar panel maker evaded anti-dumping and countervailing duties on solar cells from China and other Southeast Asian nations.
US Customs and Border Protection has started a formal investigation of Waaree and Waaree Solar Americas Inc. and imposed interim measures, Bloomberg News reported. The authorities suspect Waaree evaded duties when bringing merchandise into the US.
Background of the Investigation
The investigation is being launched in response to an allegation by the American Alliance for Solar Manufacturing Trade Committee that Waaree was mislabeling solar cells that originated in China as coming from India to avoid tariffs on Chinese solar products, the report said.
China is the world’s top producer of solar power equipment, and its scale allows it to sell products at cut-throat prices around the world. Domestic manufacturers of photovoltaic equipment in the US have complained about unfair Chinese subsidies and dumping.
Impact on Waaree Energies’ Share Price
Waaree Energies’ share price declined 5% intraday to Rs 3,276 apiece. The benchmark Nifty 50 was down 0.2%. The total traded volume so far in the day was Rs 153 crore. The relative strength index was at 63.
The stock has risen 47% since listing in October 2024. Six out of the nine analysts tracking Waaree Energies have a ‘buy’ rating on the stock, and three suggest a ‘sell’, according to Bloomberg data. The average of 12-month analyst price target implies a potential upside of 2% over the previous close.
Broader Implications for the Indian Solar Industry
The US Commerce Department launched a new trade probe on modules from Indonesia, Laos, and India after US makers filed a complaint. Steep duties were imposed earlier this year on solar equipment from Vietnam, Cambodia, Malaysia, and Thailand, as per Bloomberg.
The development is likely to have significant implications for the Indian solar industry, which has been growing rapidly in recent years. The Indian government has set ambitious targets for renewable energy, and the solar sector is expected to play a crucial role in achieving these targets.
What Lies Ahead for Waaree Energies and the Indian Solar Industry
As the investigation unfolds, Waaree Energies and other Indian solar companies will be closely watching the developments. The outcome of the probe could have significant implications for the company’s business and the broader Indian solar industry.
In the meantime, investors will be keenly watching the stock’s movement and awaiting further updates on the investigation. The company’s prospects and the overall sentiment in the Indian stock market will depend on various factors, including the outcome of the probe, government policies, and global market trends.
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