Shares of Emmvee Photovoltaic Power Ltd surged more than 6% in early trade on Tuesday after global brokerage Jefferies initiated coverage on the stock with a Buy rating and a target price of ₹320 per share. At around 9:26 AM IST, Emmvee shares were trading 6.11% higher at ₹196.21.
In its note, Jefferies said India’s solar installations are expected to grow at a 24% CAGR between FY25 and FY28E, which could support demand for domestic solar manufacturers. The brokerage highlighted Emmvee’s early adoption of TOPCon technology and the impact of Domestic Content Requirement (DCR) norms on profitability as key factors supporting its outlook.
Jefferies also noted that Emmvee’s balance sheet is adequately funded, which may allow the company to scale operations without significant financial pressure. While the brokerage expects industry profitability to moderate from FY28E onwards, it said Emmvee could maintain high-teens steady-state return on capital employed (RoCE), supported by technology choices and cost controls.
The brokerage projects an EBITDA CAGR of 56% for Emmvee over FY25–FY28E and has valued the company at 9x forward EV/EBITDA. According to Jefferies, the stock is currently trading at nearly a 50% discount compared with peers.
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