Solar energy stock held by BlackRock, engaged in manufacturing and supplying integrated solar cells and solar panels and also providing EPC Solutions related to it jumped 6 percent in the day’s trade upon receiving a new work order for the supply of solar modules.
Price Movement
With a market capitalization of Rs. 46,326 Crores, the shares of Premier Energies Limited were trading at Rs. 1,027.90 per equity share, up 1.5 percent from its previous day’s close price of Rs. 1,012.75.
What Happened
Premier Energies Limited’s subsidiary Premier Energies International Private Ltd, has entered into a Module Supply Agreement (MSA) with BN Hybrid Power-1 Private Limited, a Special Purpose Vehicle (SPV) of BrightNight India.
As per the agreement, Premier Energies Limited will supply 173.35 MWp of N-type bifacial solar modules featuring the latest Topcon technology for BN Hybrid Power-1 Private Limited’s 300 MW FDRE (Wind, Solar, and Energy Storage) Power Project located in Barmer, Rajasthan, and the supply of module is scheduled to be commenced in July 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 July 31, 2024, it has a strong order book of Rs. 5,926.56 Crores
Blackrock & other FII, DII Investment
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. National Pension services managed by Blackrock Institutional Trust Company subscribed 3.5 percent of the anchor portion.
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.
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.
Revenue breakdown
It generated 64.32 percent of its revenue from the sale of solar modules, 22.48 percent from the sale of solar cells, 4.3 percent from EPC Projects, and 8.21 percent from the sale of traded goods. Revenue share from the domestic market is 86.01 percent and exports were 13.99 percent.
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.
Financials & Ratios
Its Revenue from operations grew by 120 percent YoY from Rs. 1,428.53 Crores in FY23 to Rs. 3,143.79 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
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