The shares of the second-largest solar module and cell manufacturer fell up to 10 percent despite the company’s net profit and revenue magnified by 288 percent and 120 percent YoY, respectively in Q2FY25.
With a market capitalization of Rs 47,421.46 crore, the shares of Premier Energies Ltd were trading at Rs 1,052 apiece, decreasing around 7 percent as compared to the previous closing price of Rs 1,127.70 per share.
Matter Explanation:-
The shares of the company have seen bearish movement after Premier Energies Ltd announced its financial performance in which revenue magnified by 149 percent on a year-on-year basis from Rs 694 crore in Q2FY24 to Rs 1,527 crore in Q2FY25. However, on a Quarter-on-Quarter basis, revenue soared by 8 percent from Rs 1,657 crore in Q1FY25 to Rs 1,527 crore in Q2Y25.
Moreover, net profit is stretched by 287 percent on a yearly basis from Rs 36 crore in Q2FY24 to Rs 133 crore in Q2FY25, meanwhile, on a quarter-on-quarter basis, net profit also jumped by 4 percent from Rs 198 crore in Q1FY25 to Rs 206 crore in Q2FY25.
Reason for fall:-
Donald Trump’s U.S. election victory has raised investor caution, affecting renewable stocks like Premier Energies due to concerns over potential export policy shifts. Following Premier’s peak at ₹1,264.90, profit booking drove a 6.08% decline over the past month as investors reacted to shifting sentiment.
Prominent client & Footprint:-
The company has stronge clientele including NTPC, TATA Power Solar Systems Limited, Panasonic Life Solutions Private Limited, Continuum, Shakti Pumps, First Energy, Bluepine Energies Private Limited, Luminous, Hartek Solar Private Limited, Green Infra Wind Energy Limited, Madhav Infra Projects Limited, SolarSquare Energy Private Limited and Axitec Energy India Private Limited.
The company has exported its products around the globe includes, 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 Philippines.
Order Book:-
As of November 2024, the company had an order book of Rs 6,233 crore This total included Rs Rs 3,943 crore for DCR solar modules, Rs 1,915 crore for solar cells, and Rs 375 crore for EPC projects.
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.
BlackRock and Other prominent investors:-
The company 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.
Capex Plans:-
The company 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.
Company profile:-
Premier Energies is a manufacturer of solar cells and modules, with its core operations centered around the production of solar photovoltaic (PV) cells, specifically bifacial monocrystalline PERC cells using the M10 wafer size in a 182mm x 182mm format which could be assembled into solar modules.
Written by:- Abhishek Singh
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.
