Solar energy stock held by BlackRock, engaged in manufacturing and supplying integrated solar cells and solar panels, along with providing EPC Solutions related to it jumped upto 4 percent in the day’s trade upon receiving work order worth Rs. 1,087 Crores for the supply of Solar Cells & Modules.
Price Action
With a market capitalization of Rs. 49,948 Crores, the shares of Premier Energies Limited were trading at Rs. 1,108.05 per equity share, up 1.45 percent from its previous day’s close price of Rs. 1092.20. BlackRock Managed fund has made investment in the company through Anchor Book
What Happened
Premier Energies Limited’s subsidiaries Premier Energies Global Environment Private Limited, Premier Energies International Private Limited, and Premier Energies Photovoltaic Private Limited have received multiple work orders from 2 Large IPP customers and 1 Domestic Customer.
The said work order involves the supply of Solar PV Cells worth Rs. 123 Crores and Solar PV Modules worth Rs. 964 Crores for a total consideration of Rs. 1,087 Crores and the supply is scheduled to commence from January 2025.
About the Company
Premier Energies Limited is an integrated player in the solar ecosystem that manufactures and supplies integrated solar cells and solar panels. Its product portfolio includes Cell, Solar Modules, 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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