JPMorgan has maintained a Neutral rating on Premier Energies, with a target price of ₹1,148. The stock currently trades at ₹1,329.80, reflecting a downside potential of approximately 13.6%.
Domestic supply to grow but challenges persist
- The report highlights that the supply of domestic solar cells is expected to increase at a faster pace, potentially impacting pricing and margins in the segment.
- Premier Energies may benefit from List II policies, which could help sustain local pricing premiums for a longer period.
Margins under pressure
- Despite the anticipated supply growth and policy support, JPMorgan notes that it is challenging to justify higher margins or EBITDA for the company in the current competitive landscape.
The stock’s current valuation and supply dynamics make it difficult for the brokerage to adopt a bullish stance, warranting a Neutral rating.
Disclaimer: This article is based on JPMorgan’s report and is for informational purposes only. Please consult your financial advisor before making any investment decisions.
