Buy Premier Energies; target of Rs 1250: ICICI Securities

Moneycontrol • 4 days ago

Original source

Key Investment Pillars

  • Premier Energies has ramped up production, with 900MW+ of cells and 1.2GW of modules produced in Q2FY27, and a recently commissioned 7GW cell facility expected to reach 70% utilization by Mar'27.
  • The company has a strong order book of INR 166bn, executable over 12-14 months, with a mix of module and cell orders.
  • India's solar push, with a target of 200-220GW of capacity by 2030, is expected to drive demand for solar modules and cells, benefiting Premier Energies.
  • The company's financials are expected to improve, with revenue growth of 43% YoY and EBITDA growth of 31% YoY, despite margin contraction due to a higher share of non-DCR sales.

Thesis Validation Checklist

  • Investors should watch for signs of increasing capacity utilization, strong order inflows, and improving financial margins.
  • A decline in the gross spread due to rising competition is a key risk.
  • The Indian government's policies, including the PLI scheme and duties on imported modules and cells, are expected to support the domestic solar manufacturing industry.
  • Premier Energies' ability to execute on its expansion plans and maintain its market share will be crucial to the investment thesis.