Waaree Energies, Premier Energies: Anand Rathi initiates coverage with buy, says this
Premier Energies received a 'Buy' recommendation and a target of Rs 1,321, which is 30 times FY27–28 earnings. Waaree Energies was valued at a 10 per cent discount to arrive at target price of Rs 4,654.
- Sep 24, 2025,
- Updated Sep 24, 2025 1:29 PM IST
Brokerage Anand Rathi on Wednesday said India’s solar sector is on the cusp of transformation, with the Ministry of New and Renewable Energy (MNRE) targeting 500GW of renewable capacity by 2030. Electricity required is projected at a 5.8 per cent CAGR to 2,250 billion units (BU) by 2030 with the solar energy contribution surging from 7.9 per cent to 19.2 per cent, translating to 338GW of solar capacity required.
Anand Rathi said policies such as Approved List of Models and Manufacturers (ALMM I/II/III) will mandate domestic content in solar-panel manufacturing. While such integrated capacities come on-stream and optimise the production process, we believe that DCR modules would continue to command a $0.08/Wp premium and deliver 34 per cent Ebitda margins against 15 per cent for non-DCR modules.
Against this backdrop of sector tailwinds and resilient profitability, it initiated coverage on Premier Energies with a 'Buy' recommendation, valuing the stock at Rs 1,321, which is 30 times average FY27e–28 earnings. The target underscored Premier's strong execution and growth outlook that justify a 1 time PEG, Anand Rathi said.
"We also initiate coverage on Waaree Energies with a Buy recommendation at a 10 per cent discount to 1 time PEG to arrive at our target price of Rs 4,654, implying 30 times average FY27–28 earnings," Anand Rathi said.
Premier Energies One of the first companies to establish technology and a capex-intense cell manufacturing line, Premier Energies proved its mettle in execution with industry leading margins and return ratios, Anand Rathi said.
"With a Rs 12,000 crore capex plan, it plans to expand cell capacity threefold to 10GW and double module capacity to 11.1GW by FY28, alongside 10GW of ingot-wafer backward integration, positioning it to benefit from policy tailwinds driving indigenisation across the solar value chain; along with vertical integration into BESS and inverters," Anand Rathi said.
The brokearge said Premier Energies is one of the few companies that cater to third-party cell sales, with a 11 per cent market share in domestic cells produced YTD. That differentiates it from existing companies.
Further, it is fully focused on Indian demand with a 100 per cent domestic order book(OB) that further underpins revenue assurance.
Waaree Energies Waaree, Anand Rathi said, is a market leader with 16.7GW module and 5.4GW cell capacities, Waaree aims to expand to respectively 25.7GW and 15.4GW by FY27. It is transitioning to a fully integrated player through backward integration into 10GW wafer-ingots and diversification into BESS, green hydrogen and inverters. A record 25GW order ensures strong revenue assurance and execution pipeline, while its direct operations in the US insulates it from tariff hurdles.
"With the government targeting 40 GW of annual solar additions and policies promoting indigenisation, Waaree is set to lever backward integration and a rising DCR-revenue mix to drive strong, sustainable growth," Anand Rathi said.
Brokerage Anand Rathi on Wednesday said India’s solar sector is on the cusp of transformation, with the Ministry of New and Renewable Energy (MNRE) targeting 500GW of renewable capacity by 2030. Electricity required is projected at a 5.8 per cent CAGR to 2,250 billion units (BU) by 2030 with the solar energy contribution surging from 7.9 per cent to 19.2 per cent, translating to 338GW of solar capacity required.
Anand Rathi said policies such as Approved List of Models and Manufacturers (ALMM I/II/III) will mandate domestic content in solar-panel manufacturing. While such integrated capacities come on-stream and optimise the production process, we believe that DCR modules would continue to command a $0.08/Wp premium and deliver 34 per cent Ebitda margins against 15 per cent for non-DCR modules.
Against this backdrop of sector tailwinds and resilient profitability, it initiated coverage on Premier Energies with a 'Buy' recommendation, valuing the stock at Rs 1,321, which is 30 times average FY27e–28 earnings. The target underscored Premier's strong execution and growth outlook that justify a 1 time PEG, Anand Rathi said.
"We also initiate coverage on Waaree Energies with a Buy recommendation at a 10 per cent discount to 1 time PEG to arrive at our target price of Rs 4,654, implying 30 times average FY27–28 earnings," Anand Rathi said.
Premier Energies One of the first companies to establish technology and a capex-intense cell manufacturing line, Premier Energies proved its mettle in execution with industry leading margins and return ratios, Anand Rathi said.
"With a Rs 12,000 crore capex plan, it plans to expand cell capacity threefold to 10GW and double module capacity to 11.1GW by FY28, alongside 10GW of ingot-wafer backward integration, positioning it to benefit from policy tailwinds driving indigenisation across the solar value chain; along with vertical integration into BESS and inverters," Anand Rathi said.
The brokearge said Premier Energies is one of the few companies that cater to third-party cell sales, with a 11 per cent market share in domestic cells produced YTD. That differentiates it from existing companies.
Further, it is fully focused on Indian demand with a 100 per cent domestic order book(OB) that further underpins revenue assurance.
Waaree Energies Waaree, Anand Rathi said, is a market leader with 16.7GW module and 5.4GW cell capacities, Waaree aims to expand to respectively 25.7GW and 15.4GW by FY27. It is transitioning to a fully integrated player through backward integration into 10GW wafer-ingots and diversification into BESS, green hydrogen and inverters. A record 25GW order ensures strong revenue assurance and execution pipeline, while its direct operations in the US insulates it from tariff hurdles.
"With the government targeting 40 GW of annual solar additions and policies promoting indigenisation, Waaree is set to lever backward integration and a rising DCR-revenue mix to drive strong, sustainable growth," Anand Rathi said.