Solar energy stock engaged in manufacturing and supplying integrated solar cells and solar panels and also providing EPC Solutions, and O&M Solutions hit a 20 percent upper circuit in the day’s trade upon receiving a new work order worth for the supply of solar pumps
Price Action
With a market capitalization of Rs. 45,402 Crores, the shares of Premier Energies Limited closed at Rs. 1,007.20 per equity share, up 19.59 percent from its previous day’s close price of Rs. 842.20.
What Happened
Premier Energies Limited has received a new work order from the Uttar Pradesh Department of Agriculture for the supply, installation, and commissioning with 5 years comprehensive warranty of 8,085 solar water pumping systems under the PM Kusum Scheme across various districts in UP for a consideration of Rs. 215 Crores.
Also read: Ambani stock in focus after it receives PLI scheme for battery manufacturing
About the Company
Premier Energies Limited is engaged in manufacturing integrated solar cells and solar panels. The company’s product portfolio includes Cell, Solar Module, Monofacial and Bifacial, modules, EPC Solutions, and O&M Solutions.
Premier Energies Limited is the second largest solar cell manufacturer in India with an annual installed capacity of 2 GW and a 25 percent market share and it is the 4th largest manufacturer of solar modules with an annual installed capacity of 4.13 GW out of India’s 72 GW Capacity with a 6 percent market share.
Presence
It has a global presence with its products being exported to countries like the United States, Hong Kong, South Africa, Bangladesh, Norway, Nepal, France, Malaysia, Canada, Sri Lanka, Germany, Hungary, the United Arab Emirates, Uganda, Turkey, South Korea, China, Taiwan, and the Philippines.
Client Base
It has a strong clientele base with well-known players NTPC Limited, TATA Power Solar Systems Limited, Panasonic Life Solutions Private Limited, Shakti Pumps Limited, Luminous, Continuum, First Energy, Bluepine Energies Private Limited, Green Infra Wind Energy Limited, Madhav Infra Projects Limited, SolarSquare Energy Private Limited and many others.
Future Plans
It has an installed capacity of 2GW Solar cell manufacturing facility with work going on for setting up a 1GW along with goals of expanding it to 7 GW and a 4 GW Solar Module manufacturing facility with goals to expand it to 8 GW with a capex plan of Rs. 3,400 Crores by part financing it with the IPO proceeds and funds from other sources.
Blackrock and other investors in IPO
Premier Energies Limited received a stellar response for its anchor investments from big names like Blackrock, Nomura, Abu Dhabi Investment Authority, DSP India, Morgan Stanley, PNB Paribas, HDFC, ICICI, and many other Indian and global pension/equity funds.
Also read: Tourism stock jumps 12% after company forays into manufacturing of EV buses
Financials & Ratios
Its Revenue from operations grew by 117 percent YoY from Rs. 1,463.21 Crores in FY23 to Rs. 3,171.31 Crores in FY24, accompanied by a loss of Rs. 13.34 Crores to profits of Rs. 231.36 Crores.
In terms of Return ratios, it has reported a return on equity (ROE) of 43.73 percent and a return on capital employed (ROCE) of 25.65 percent. It has reported a high debt-to-equity ratio of 1.86.
Written by: Bharath K.S
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
