Waaree Energies vs Premier Energies: Which solar panel maker may lead Q4 growth? Target prices

Solar panel makers Premier Energies Ltd and Waaree Energies Ltd have surged 25-34 per cent in the past one month amid concerns over the West Asia crisis and its impact on India's energy supplies. Ahead of the March quarter results season, a couple of brokerages expect Waaree Energies to outshine solar panel maker Premier Energies in terms of Q4 growth. They retained 'Buy' on both the stocks. 

Kotak Institutional Equities expects Waaree Energies to report a 111 per cent YoY surge in the net profit at Rs 1,310.30 crore on a 124 per cent YoY jump in sales at Rs 8,999,20 crore. Waaree's revenue growth is expected to be led by scale up of recently commissioned module facilities, improvement in utilisation of 5.4 GW cell facility, new inverter and transformer business, and surge in module pricing by $2 cents/wp due to increase in Chinese cell prices.

Premier Energies, on the other hand, is seen reporting 73.61 per cent YoY growth in profit at Rs 482.30 crore on 54.5 per cent YoY rise in sales at Rs 2,503.80 crore. Revenue growth for this solar module manufacturer is seen growing 54 per cent YoY, driven by a ramp-up in production at Premier’s 1.2 GW cell facility. 

MOFSL estimated Waaree's Q4 profit at Rs 1,134. crore, up 82.3 per cent YoY. This is against 33.3 per cent estimated rise in Premier Energies' profit at Rs 369.90 crore, the domestic brokerage said.

MOFSL estimated Waaree's sales at Rs 6,744 crore, up 68.4 per cent. Premier is seen reporting 49 per cent rise in sales at Rs 2,332 crore. This brokerage suggested 'Buy' on both the stocks, with target prices of Rs 3,071 for Waaree Energies and Rs 1,093 for Premier Energies.

On Wednesday, Waaree Energies settled at Rs 3,244 and Premier Energies at Rs 955.65.

Nuvama Institutional Equities expects Waaree Energies to beat Premier Energies in terms of revenue and profit. Premier, on the other hand, is seen reporting higher gross profit margin, despite a YoY 388 points contraction.  

It sees Waaree Energies logging its highest-ever quarterly revenue of Rs 8,050 crore in Q4, up  100 per cent YoY, while Ebitda for the solar panel maker is seen rising 62 per cent YoY to Rs 1,496.50 crore. Profit for the quarter is seen rising 51 per cent YoY to Rs 943.20 crore. Gros profit margin is seen at 37 per cent, up 185 basis points. 

In comparison, Premier is seen reporting 34 per cent YoY rise in net profit at Rs 277.80 crore on 29 per cent YoY rise in sales at Rs 1,620.80 crore. Gross profit margin is seen at 41 per cent, down 388 basis points. This brokerage has‘Buy’ on both Waaree and Premier, with targets of Rs 3,737 and Rs 1,082.