Premier Energies gains 6% on bagging multiple orders worth Rs 1,460 cr

Premier Energies gained 5.7 per cent in Wednesday's trade on BSE, logging an intraday high at Rs 1,179.2 per share. The buying in the stock came after the company secured and accepted multiple orders aggregating to Rs 1,460 crore.

 

Around 10:48 AM, Premier Energies shares were up 1.65 per cent at Rs 1,133.8 per share on BSE. In comparison, the BSE Sensex was up 0.58 per cent at 76,946.88. The market capitalisation of the company stood at Rs 50,993.85 crore. The 52-week high of the stock was at Rs 1,387.1 per share and the 52-week low was at Rs 801.6 per share. 

 

The company received orders from two large independent power producers (IPP) who were not named and others. These orders include Rs 1,041 crore for solar modules and Rs 419 crore for solar cells. The supply of these modules is scheduled to commence from May 2025. 

 

Meanwhile, recently, Kotak Institutional Securities has initiated coverage on Premier Energie with a 'Sell' call for a target price of Rs 770 per share. As per the brokerage, Premier Energies' valuation is at a premium across Indian pure-play solar equipment companies, extrapolating recent good times.

 

The brokerage believes that the current valuation of Indian solar manufacturing companies implies that the sector will continue to see exponential growth over the medium term, and estimated growth at an 18 per cent compound annual growth rate (CAGR) in capacity addition over FY2024-30E. However, the sustenance of unit economics at current levels is unlikely, given the increasing competitive intensity.

 

Analysts at Kotak further reckon that Indian solar companies are well-positioned for strong growth in domestic and US markets, aided by trade and non-trade barriers. Over the medium term, integrated Indian manufacturers and companies with local US manufacturing presence would continue to enjoy a competitive advantage over peers, resulting in superior profitability.

  Premier Energies Ltd. is Indian company specialising in renewable energy, particularly solar power. It manufactures high-quality solar photovoltaic (PV) modules for various applications, including residential, commercial, and industrial use. The company is also involved in the development and execution of solar power projects, offering end-to-end solutions, from design and installation to operations and maintenance. Premier Energies exports solar modules internationally, contributing to the global shift towards renewable energy. With a strong focus on sustainability, Premier Energies plays a key role in India’s transition to cleaner energy sources, supporting both domestic and global renewable energy goals.