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What is the story about?
Shares of Premier Energies Ltd. are trading nearly 6% lower despite brokerage firm Motilal Oswal initiating coverage on the stock with a bullish stance.
Motilal Oswal has initiated coverage with a 'Buy' rating and a price target of ₹1,000 per share, implying a potential upside of 21% from Tuesday's closing price.
The stock opened higher and touched an intraday high of ₹834 before reversing sharply, falling about 7% from the day's peak.
The brokerage said it is constructive on Premier Energies due to its strong capacity ramp-up, industry-leading backward integration, healthy margins, and robust order book.
As of January 2026, the company had module and cell manufacturing capacities of 5.4 GW and 3.6 GW, respectively.
These are expected to scale up to 11.1 GW and 10.6 GW by the end of FY27.
Motilal pointed to Premier's superior-backward integration, with a cell-to-module ratio of 67% as of January 2026, compared with other listed peers.
This integration has helped the company deliver industry-leading EBITDA margins of over 30%.
The brokerage also said that clarity on a potential US-India trade deal could act as a key catalyst, accelerating export growth and potentially enabling the company to establish an overseas manufacturing base.
At 10x FY28 EV/EBITDA, Motilal Oswal believes valuations remain reasonable, especially given the estimated 30% EBITDA CAGR over FY25 to FY28.
Speaking to CNBC-TV18 earlier during the Q3 earnings interaction, management said upcoming capacity additions are expected to drive revenue and profit growth, supported by strong demand momentum.
While there are concerns in the utility-scale segment due to transmission delays and slower tendering activity, demand remains robust in the rooftop and solar pump segments.
The company is also seeing improving traction in the C&I segment, alongside a sharp increase in demand from the corporate renewable market.
Motilal Oswal has initiated coverage with a 'Buy' rating and a price target of ₹1,000 per share, implying a potential upside of 21% from Tuesday's closing price.
The stock opened higher and touched an intraday high of ₹834 before reversing sharply, falling about 7% from the day's peak.
The brokerage said it is constructive on Premier Energies due to its strong capacity ramp-up, industry-leading backward integration, healthy margins, and robust order book.
As of January 2026, the company had module and cell manufacturing capacities of 5.4 GW and 3.6 GW, respectively.
These are expected to scale up to 11.1 GW and 10.6 GW by the end of FY27.
Motilal pointed to Premier's superior-backward integration, with a cell-to-module ratio of 67% as of January 2026, compared with other listed peers.
This integration has helped the company deliver industry-leading EBITDA margins of over 30%.
The brokerage also said that clarity on a potential US-India trade deal could act as a key catalyst, accelerating export growth and potentially enabling the company to establish an overseas manufacturing base.
At 10x FY28 EV/EBITDA, Motilal Oswal believes valuations remain reasonable, especially given the estimated 30% EBITDA CAGR over FY25 to FY28.
Speaking to CNBC-TV18 earlier during the Q3 earnings interaction, management said upcoming capacity additions are expected to drive revenue and profit growth, supported by strong demand momentum.
While there are concerns in the utility-scale segment due to transmission delays and slower tendering activity, demand remains robust in the rooftop and solar pump segments.
The company is also seeing improving traction in the C&I segment, alongside a sharp increase in demand from the corporate renewable market.
