Waaree Energies Correction: Mutual Funds Most Exposed to the Stock

Waaree Energies, India's largest solar PV module manufacturer and one of the country's leading exporters of solar modules, saw a sharp correction on 25 February 2026.

The stock fell nearly 15% in a single trading session, drawing strong attention from investors.

The immediate trigger came from the United States. On 24 February 2026, the US Department of Commerce announced preliminary countervailing duties of around 126% on solar cell and module imports from India, citing unfair subsidies.

Since Waaree earns nearly 32.6% of its total revenue from overseas markets, the announcement raised concerns about potential disruption in export demand, especially from the US.

This led to heavy selling pressure across solar stocks, with Waaree falling sharply intraday.

However, the recent fall was not an isolated event. The stock has been facing pressure since early 2026 due to multiple developments.

The resignation of the company's CEO, who stepped down to explore opportunities outside the organisation is another reason for the pressure on the stock.

The stock was included in the Futures & Options (F&O) segment. Thus, trading volumes increased significantly, with turnover rising well above previous averages, which also added to volatility.

Adding to this were regulatory developments such as a GST notice and the recent US trade action.

Together, these events have gradually impacted investor sentiment and contributed to the correction seen in the stock.

If we look at the stock price movement over the past two months, it reflects how these triggers unfolded:

Waaree Energies' share price showed volatility during January-February 2026, rising toward early-February before witnessing a noticeable pullback toward the end of the period.

Mutual funds that hold Waaree Energies in their portfolios are also affected by this volatility. When a stock sees sharp price swings, it directly impacts the fund's Net Asset Value (NAV), depending on how much exposure the fund has to that stock.

Mutual Funds with the Highest Exposure to Waaree Energies

#1 Motilal Oswal Large & Midcap Fund

Motilal Oswal Large & Midcap Fund is an equity scheme investing in large and mid-cap stocks.

In terms of portfolio allocation, around 37% of the fund is invested in large-cap stocks, while nearly 34% is allocated to mid-cap companies.

As of January 2026, the fund had invested approximately 3.94% of its total AUM in Waaree Energies.

#2 JM Focused Fund

JM Focused Fund is an equity scheme that invests in a maximum of 30 stocks across large-cap, mid-cap, and small-cap companies.

As of January 2026, the fund has the highest allocation to large-cap stocks at 56.65%, followed by 28.65% in mid-cap stocks and 12.66% in small-cap companies.

The fund has invested approximately 3.34% of its total AUM in Waaree Energies.

#3 JM Large and Mid Cap Fund

JM Large and Mid-Cap Fund is an equity scheme that aims to generate long-term capital growth by investing mainly in large-cap and mid-cap stocks.

As of January 2026, around 49.20% of the portfolio is invested in large-cap stocks, 38.11% in mid-cap companies, and nearly 9% in small-cap stocks.

The fund has invested approximately 2% of its total AUM in Waaree Energies.

#4 Kotak Energy Opportunities Fund

Kotak Energy Opportunities Fund is an equity scheme that aims to generate long-term capital appreciation by investing predominantly in companies engaged in energy and energy-related activities.

As of January 2026, around 55.37% of the portfolio is invested in large-cap stocks, 22.05% in mid-cap companies, and 14.34% in small-cap stocks.

The fund has invested approximately 1.66% of its total AUM in Waaree Energies.

#5 Kotak Manufacturing in India Fund

Kotak Manufacturing in India Fund aims to generate capital appreciation by investing in a diversified portfolio of companies aligned with the manufacturing theme.

As of January 2026, around 58.54% of the portfolio is invested in large-cap stocks, 23.23% in mid-cap companies, and 17.16% in small-cap stocks.

The fund has invested approximately 1.29% of its total AUM in Waaree Energies.

What This Means for Mutual Fund Investors

While Waaree Energies is just one stock within these portfolios, it's important to understand that even a single stock can influence a fund's short-term performance if the allocation is meaningful.

Mutual funds typically hold a diversified basket of stocks across sectors and market capitalisations. This diversification helps reduce the overall impact of volatility in any one company.

However, exposure levels still matter. When a stock sees sharp price movements, funds with higher allocation to that stock may experience a noticeable impact on their NAV.

While short-term corrections in individual stocks can create temporary pressure, the broader portfolio strategy remains the bigger driver of long-term returns.

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here...