Domestic brokerage Nuvama has initiated a buy call on Premier Energies with a target price of Rs 1,270 per share, implying an upside potential of approximately 32 per cent from the current market price of Rs 961.70.
The brokerage is betting on the solar module manufacturer’s strategic pivot to capture strong J-curve growth in the new energy segment, while its core solar business remains solid.
Nuvama expects Premier Energies to deliver robust revenue and EBITDA CAGR of 49 per cent and 43 per cent respectively over FY26-28, driven by higher capacity additions, backward integration initiatives and stable Domestic Content Requirement (DCR) realisations.
Addressing market concerns, the brokerage noted that fears of overcapacity in the solar manufacturing space are exaggerated, given the tough funding conditions that are likely to constrain aggressive capacity additions by smaller players.
While Nuvama acknowledged that margins may ease going forward, it highlighted that the company’s integration into wafers, battery energy storage systems (BESS), transformers and inverters supports long-term growth and lowers business risk through diversification.
The brokerage justified a higher valuation for Premier Energies, citing the early-stage, high-growth nature of the industry cycle that the company is well-positioned to capitalise on.
Shares of Premier Energies closed at Rs 961.70 on the exchanges.
Disclaimer: This article is for informational purposes only and should not be construed as investment advice. Stock market investments are subject to market risks. Readers are advised to consult their financial advisors before making any investment decisions. The views expressed by the brokerage are their own and do not represent the opinions of this publication.
