Premier Energies shares rally 5% amid heavy volumes; check latest price targets

Shares of Premier Energies Ltd surged more than 5.17 per cent during the trading session on Tuesday to hit Rs 1,119.80 amid heavy trading volumes. The company topped Rs 50,000 crore mark capitalization. The stock has gained more than 48 per cent from its 52-week low at Rs 755.55, hit two months ago in April 2025.

Premier Energies reported a significant rise in its net profit for the fourth quarter ended March 31, 2025, marking a 167% year-on-year increase to Rs 277.8 crore. The company's revenue also saw a substantial 43.9% jump to Rs 1,620.8 crore, bolstered by enhanced operating profitability due to higher DCR contributions and other income streams. These results exceeded expectations by 22%, reflecting Premier's strategic focus on expanding its operational capabilities and profitability.

A significant block deal took place in Premier Energies' shares on Tuesday, June 10. According to data, shares worth Rs 2,629 crore changed hands in the pre-open window, with 2.5 crore shares or 5.54% of the company's outstanding equity being traded at an average price of ₹1,052 per share. The identities of the buyers and sellers remain undisclosed.

Media reports indicate that South Asia Growth Fund II was the party offloading the shares, amounting to 5.5% of Premier Energies' equity. The block deal's floor price was set at ₹1,501 per share, representing a slight 1% discount from the previous day's closing price. This financial manoeuvre is noteworthy as Premier continues to ramp up its solar manufacturing capacity amidst national barriers against Chinese imports. GEF South Asia has recorded completely exited from Premier Energies with cumulative of 40 times return valued at $1 billion on their investments.

ICICI Securities reiterated a 'BUY' recommendation on Premier Energies with a target price of INR 1,320, based on projected FY27 earnings. The firm underscores Premier's competitive edge stemming from its process know-how, robust capital base, scale, and backward integration, which are expected to distinguish it from its peers.

Additionally, Premier Energies has launched 'Mission 2028', targeting a 10 GW integrated solar manufacturing capacity. The company plans to broaden its scope to include Battery Energy Storage System (BESS) assembly, inverter manufacturing, and aluminium frame production. This ambitious expansion reflects Premier's commitment to solidifying its market position and accommodating soaring domestic solar demand.

Nuvama Institutional Equities has noted the rapid acceleration of domestic demand driven by utility-scale projects, commercial and industrial requirements, and rooftop installations. However, they have not rated Premier Energies, highlighting ongoing strategic transitions within the company.

Kotak Institutional Equities, however, issued a 'sell' rating, setting a target price of Rs 900. Their revised estimates for FY2026/27 take into account adjustments in Premier's capacity expansion plans and profitability projections, which are expected to impact future financial performance.

Premier's industry peers are also witnessing similar market dynamics, with the company being one of the two key players advancing solar manufacturing capacity. The strategic shift is partly due to India's efforts to fortify its domestic manufacturing base against Chinese competition post-April 2024 when new barriers were enacted.