Premier Energies shares: Analysts initiate coverage on Waaree Energies peer; check targets

Premier Energies shares: Solar cell and solar panel manufacturer Premier Energies Ltd has drawn fresh attention from a couple of brokerage firms, which have initiated coverage on the renewable energy player lately, with a positive outlook. Analysts see up to 28 per cent upside in the stock from Wednesday's lows.

Motilal Oswal Financial Services (MOFSL) has initiated coverage on Premier Energies, underscoring its accelerated capacity ramp-up, strong industry-leading integration, and high margins. Premier’s manufacturing capacity as of January 2026 stood at 5.4GW for modules and 3.6GW for cells, with projections to increase these figures to 11.1GW and 10.6GW, respectively by the end of FY27.

Premier Energies’ backward integration, featuring a cell-to-module ratio of 67 per cent at January 2026-end, setting it apart from other listed peers such as Waaree Energies Ltd at 24 per cent and Emmvee at 29 per cent. This integration has supported Premier Energies in achieving Ebitda margins of over 30 per cent, maintaining high profitability, said Motilal Oswal.

Similarly, Elara Capital also initiated coverage on Premier Energies, noting its comprehensive presence across cells, modules, inverters, and transformers. The company has made significant strides in ramping up module and cell production, with rapid adoption of TOPCon technology and forays into battery storage systems and aluminium-frame manufacturing.

According to Elara, Premier Energies remains a reliable supplier to both domestic and international markets, yet faces margin risks from increasing competition. By FY28, Premier Energies aims to achieve full integration, supported by scaling up cell capacity from 3.2GW to 11.1GW and module capacity from 5.1GW to 10.6GW.

Shares of Premier Energies declined 5 per cent to Rs 783.30 on Wednesday, commanding a total market capitalization close to Rs 35,000 crore. The stock had settled at Rs 823.80 on Tuesday. It has dropped nearly 20 per cent in the last one six months. Even after these corrections, the stock is up 7 per cent in the last one month.

Although export revenues comprised only 1 per cent during the first nine months of FY26, Motilal Oswal noted that further clarity on a potential US-India trade deal could serve as a catalyst for export growth and facilitate the company’s plans for overseas manufacturing operations.

Motilal Oswal also acknowledged operational risks, including commodity price volatility—particularly in silver—which could pressure margins. The brokerage anticipates Ebitda margins will moderate to 20 per cent by FY28 from 28 per cent in FY26. Premier Energies is expanding into allied verticals including battery energy storage systems (BESS), inverters, and transformers.

Elara projects a revenue CAGR of 35 per cent and ebitda CAGR of 27 per cent for Premier Energies during FY25-28, supported by robust expansion and backward integration. It is targeting 10GW each of ingot and wafer capacity. Elara points to strong process efficiency and backward integration as factors underpinning Premier Energies’ position in the high realisation DCR segment through FY28.

Premier Energies’ financials are robust, as Motilal Oswal estimates a 30 per cent CAGR in both Ebitda and adjusted PAT from FY25 to FY28, driven by capacity expansion and the ramp-up of new business segments.  It reported an ebitda margin of 30 per cent in the nine months ended FY26, with ROE and ROCE at 54 per cent and 32 per cent in FY25, respectively, surpassing Waaree, it said.

Shares of Premier Energies were listed in August 2024, when the company raised a total of Rs 2,830 crore via IPO by selling its shares for Rs 450 apiece. The stock surged 158 per cent from its IPO price to its all-time high but then sawa a sharp fall. The stock is still up 75 per cent from its issue price.

Motilal Oswal's valuation approach is based on a sum-of-the-parts methodology, assigning a 13 times FY28E ebitda multiple to the domestic module business—a premium to global peers—and a 10 times FY28E ebitda multiple to the new business segment, which is heavily weighted towards battery manufacturing. It has a 'buy' rating on the Premier with a target price of Rs 1,000.

Elara Capital highlights that the stock has corrected 33 per cent from its peak of Rs 1,163.50, with current valuations reflecting persistent oversupply concerns and margin compression. Elara has given it an 'accumulate' rating and a target price of Rs 886, signalling cautious optimism as the sector faces heightened competitive intensity.

Premier Energies has announced the formation of a strategic joint venture with BA Prerna Renewables to expand its presence in the EPC segment in the renewable energy sector. The joint venture will be executed through HeliosAnthos Energies, a newly incorporated company, in which Premier Energies will acquire and hold a 51 per cent equity stake, it said in the exchange filing.

As per MOSFL, upside risks include the formalisation of localisation mandates and government initiatives to support power purchase agreements and grid connectivity. It identifies downside risks such as intensifying competition from large domestic players, execution delays in expanding capacity, and the potential postponement of domestic content requirements by the government.