Synopsis:
Premier Energies Restricted is in focus after Sure Securities has assigned a brand new goal worth with a Purchase score with an upside of greater than 28%.
One of many main brokerage corporations, YES Securities, has maintained a ‘Purchase’ score on Premier Energies Restricted, primarily based on its robust home demand, supportive authorities insurance policies, and sturdy progress and monetary efficiency.
With the market capitalization of Rs. 46,078.16 crore, the shares of Premier Energies Restricted closed at Rs. 1,022.20, down by 2.60 p.c from its earlier day’s shut worth of Rs. 1,049.50 per fairness share.
What’s the Information?
Sure Securities has maintained its ‘Purchase’ score on the inventory with the goal worth of Rs. 1,310, with an upside of 28.15 p.c from CMP of Rs. 1,022.20. YES Securities highlighted that India’s aim of 500GW non-fossil vitality by 2030, together with rising home sourcing mandates, is creating robust long-term assist for the sector.
Applications just like the PLI scheme for high-efficiency modules, the ALMM mandate favoring native producers, the PM-KUSUM scheme for distributed photo voltaic, and state insurance policies for open-access photo voltaic are boosting home demand and selling localization.
The brokerage famous that PEL at the moment imports most uncooked supplies, primarily from China. With its upcoming built-in facility and plans past manufacturing, the corporate is predicted to realize value and enterprise synergies.
Whereas PEL is in discussions for the PLI scheme, no remaining plan is confirmed. YES Securities estimates that backward integration might enhance EBITDA margins by about 50 foundation factors between FY25 and FY28.
YES Securities famous that PEL has restricted exports to ~4.2 p.c of FY25 income, prioritizing home execution, with an order ebook of Rs 8,600 crore as of June, 2025 totally backed by advances and visibility for 12–15 months. IPO proceeds of ~Rs 1,290 crore are allotted to project-specific accounts.
The brokerage expects PEL’s income, EBITDA, and PAT to develop at ~39 p.c, 39 p.c, and 42 p.c CAGR respectively over FY25–28, pushed by a 42.8 p.c quantity CAGR, and initiates protection with a BUY score and a goal worth of Rs 1,310. The inventory at the moment trades at a PER of twenty-two.2x/17.7x and EV/EBITDA of 13.2x/10.5x for FY27/28e.
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Concerning the Firm
Premier Energies Restricted, primarily based in Hyderabad and included in 1995, manufactures and sells built-in photo voltaic cells and modules in India, together with bifacial monocrystalline PERC cells, monofacial modules, and customized panels.
It additionally gives EPC providers for photo voltaic initiatives, transmission line and substation upgrades, and photo voltaic merchandise like water pumps, lighting methods, and e-vehicles, whereas growing its personal solar energy initiatives.
In Q1 FY26, the corporate reported income of Rs. 1,821 crore, up 9.9 p.c YoY from Rs. 1,657 crore in Q1 FY25 and 12.3 p.c QoQ from Rs. 1,621 crore in This autumn FY25. Revenue grew 55.6 p.c YoY to Rs. 308 crore from Rs. 198 crore in Q1 FY25 and 10.8 p.c QoQ from Rs. 278 crore in This autumn FY25, reflecting robust quarter-on-quarter and year-on-year efficiency.
In the intervening time, the corporate’s P/E ratio is 45x larger as in comparison with its business P/E 40.1x. The corporate’s ROE and ROCE are 53.6 p.c and 41.1 p.c respectively, and the D/E ratio of 0.69, signifies the corporate’s monetary efficiency.
Written by Akshay Sanghavi
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