Premier Energies shares hit fresh record high, multibagger stock rallies 164% from IPO price

Shares of Premier Energies Ltd, which staged a solid market debut earlier this week on Tuesday (September 3), continued their stellar run in Friday's trade. The stock surged 18.15 per cent to hit a new record high value of Rs 1,190. At this price, the multibagger scrip has ascended by 164.44 per cent from its issue price of Rs 450.

The recently listed entity has received an order from the Uttar Pradesh Department of Agriculture to supply, install and commission a five-year comprehensive warranty of 8,085 solar water pumping systems across various districts in the state. The project, valued at Rs 215 crore, is scheduled for completion by March 2025.

The counter saw high trading volume today as around 33.84 lakh shares were last seen changing hands on BSE. The figure was higher than the two-week average volume of 28.94 lakh shares. Turnover on the counter came at Rs 375.65 crore, commanding a market capitalisation (m-cap) of Rs 51,640.71 crore.

Analysts largely suggested considering booking profit at the current market price, given the sharp run-up. That said, investors with a high-risk appetite can continue with their positions, one of them said.

"The stock has been rising after a strong listing. It has been attracting investor attention due to the momentum in the green energy and EV space. At present, there is more emphasis on the alternative fuel and green energy segment. The management has given strong guidance with increased revenue share," said Kranthi Bathini, Director of Equity Strategy at WealthMills Securities.

"Investors with listing gains can take some profit from the table. Those with a high-risk appetite can consider holding on to the stock," the market expert added.

Technically, support on the counter could be seen in the Rs 1,100-995 zone. "After a stellar listing, Premier Energies looked very overvalued at the current market price. Investors should be booking profits at current levels as a daily close below support of Rs 995 could lead to a downward target of Rs 800-576 in the coming weeks," said Sebi-registered research analyst AR Ramachandran.

"One should consider booking profits at current levels. Resistance will be at Rs 1,190 and support at Rs 1,100. A drop below Rs 1,100 can trigger a further slide," said Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking.

Incorporated in April 1995, Premier Energies manufactures integrated solar cells and solar panels. Its product portfolio includes cell, solar modules, bifacial modules, EPC solutions and O&M solutions. It has five manufacturing units, all of which are situated in Hyderabad, Telangana.