Anand Rathi bullish on 2 solar stocks; eyes up to 33% upside: Here's why

Domestic brokerage Anand Rathi Share & Stock Brokers has initiated coverage on two renewable energy stocks, including Waaree Energies and Premier Energies, with a Buy rating. 

 

The brokerage noted that India's solar sector is on the cusp of transformation, with the Ministry of New and Renewable Energy (MNRE) targeting 500 GW of renewable capacity by 2030. Electricity demand is projected to increase at a 5.8 per cent compounded annual growth rate (CAGR) of 2,250 billion units (BU) by 2030, with the solar energy contribution increasing from 7.9 per cent to 19.2 per cent, translating to 338GW of solar capacity required. 

 

 

At 11:30 AM, Waaree Energies shares were trading at ₹3,467, down 0.7 per cent, while Premier Energies stock was trading almost flat at ₹1,043.95.  According to analysts at Anand Rathi, policies such as the 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 vs 15 per cent for non-DCR modules," the brokerage said in a note. Ebitda stands for earnings before interest, tax, depreciation, and amortisation. 

 

Against this backdrop of sector tailwinds and resilient profitability, the brokerage has initiated coverage on Premier Energies with a Buy recommendation, valuing the stock at ₹1,321 (30x average FY27e–28e earnings), underscoring its strong execution and growth outlook that justifies a 1x PEG. The target price implies an upside of 26.5 per cent from Wednesday, September 24, 2025, closing price of ₹1,044.7.

 

"We also initiate coverage on Waaree Energies with a Buy recommendation at a 10 per cent discount to 1x PEG to arrive at our target price of ₹4,654, implying 30x average FY27e–28e earnings," the brokerage said.

 

Premier Energies is one of the first companies to establish technology and a capex-intensive cell manufacturing line. The company has proved its mettle in execution with industry-leading margins and return ratios. The target price implies an upside of 26.5 per cent from Wednesday, September 24, 2025, closing price of ₹1,044.7.

 

"With a ₹12,000 billion 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," the brokerage said.

 

Premier Energies is one of the few companies that cater to third-party cell sales, with an 11 per cent market share in domestic cells produced year-to-date (YTD). Additionally, it is fully focused on Indian demand with a 100 per cent domestic order book(OB) (₹8,500 crore, 5.5GW) that further underpins revenue assurance.

 

The market leader with 16.7GW module and 5.4GW cell capacities, Waaree Energies aims to expand respectively 25.5GW and 15.4 GW by FY27. The company is transitioning to a fully integrated player through backward integration into 10GW wafer-ingots and diversification into BESS, green hydrogen and inverters. The brokerage has set a target price of ₹4,654, implying an upside of 33 per cent from September 24 closing price of ₹3,489.9.

 

"A record 25GW order book (₹49,000 crore) ensures strong revenue assurance and execution pipeline, while its direct operations in the US insulates it from tariff hurdles," the brokerage said. 

 

With the government targeting 40GW 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.