JP Morgan has maintained a Neutral rating on Premier Energies, assigning a target price of ₹1,019 per share, implying limited upside from the current market price of ₹1,030.70.
The brokerage highlighted that while India’s solar cell manufacturing capacity is expected to see significant expansion, several additional projects have recently been proposed. If all these materialise, India’s total solar cell manufacturing capacity could exceed 100 GW by the end of FY27, far outpacing domestic demand.
JP Morgan cautioned that such a large oversupply scenario could erode the benefits of current government support measures like tariffs, Domestic Content Requirement (DCR) and Approved List of Models and Manufacturers (ALMM), thereby pressuring margins for domestic solar cell producers.
The report also noted that the proposed extension of ALMM norms to wafers and ingots could offer some offsetting benefits to companies investing in those segments. However, it remains in early stages of implementation and scaling up such operations could be challenging, the brokerage added.
CMP: ₹1,030.70
Target Price: ₹1,019
Rating: Neutral
Disclaimer: This article is based on brokerage research by JP Morgan and is for informational purposes only. It does not constitute investment advice. Investors are advised to consult certified financial experts before making investment decisions.
