Solar energy stock held by BlackRock, engaged in manufacturing and supplying integrated solar cells and solar panels, along with providing EPC Solutions related to signs MoU worth Rs 5,292 Crores with Telangana Government.
Price Action
With a market capitalization of Rs. 59,700 Crores, the shares of Premier Energies Limited closed at Rs. 1,324.40 per equity share, up 3.38 percent from its previous day’s close price of Rs. 1,281.15.
What Happened
Premier Energies Limited’s subsidiary Premier Energies Global Environment Pvt Ltd has signed a memorandum of understanding (MoU) with the Government of Telangana to establish a 4 GW Solar PV TOPCon cell and Module manufacturing facility in Sitarampur with an estimated investment of Rs 3,342 Crores.
The Telangana State Industrial Infrastructure Corporation (TSIIC) has already allocated around 75 Acres for this project, which will create 1000 jobs.
Additionally, Premier Energies is investing around ~Rs. 1,950 Crore to set up plants for ingots silicon wafers and aluminum extrusions. The facility will be located on an anticipated 125 Acres of TSIIC-allocated land in Sitarampur, which will generate 1500 additional jobs.
About the Company
Premier Energies Limited is an integrated player in the solar ecosystem engaged in manufacturing and supplying integrated solar cells and solar panels. Its product portfolio includes Cell, Solar Module, Monofacial and Bifacial modules, EPC Solutions, and O&M Solutions. As of November 6, 2024, it has a strong order book of Rs. 6,233 Crores.
Installed Capacity
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 models with an annual installed capacity of 4.13 GW out of India’s 72 GW Capacity and 6 percent market share.
Capex 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 funding from other sources.
Client Base
It has a strong clientele base with well-known players NTPC, TATA Power Solar Systems Limited, Panasonic Life Solutions Private Limited, Shakti Pumps, Luminous, Continuum, First Energy, Bluepine Energies Private Limited, Green Infra Wind Energy Limited, Madhav Infra Projects Limited, SolarSquare Energy Private Limited, and many others.
Financials and Ratios
Its revenue from operations grew by 121 percent from Rs. 701.81 Crores in Q2FY24 to Rs. 1553.59 Crores in Q2FY25, accompanied by profits of Rs. 52.86 Crores to Rs. 205.95 Crores.
In terms of Return ratios, it has reported a return on equity (ROE) of 41.56 percent, and a return on capital employed (ROCE) of 40.64 percent. It has reported a debt-to-equity ratio of 0.55.
Written by: Bharath K.S
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