Synopsis:
Premier Energies Limited is in focus after Yes Securities has assigned a new target price with a Buy rating with an upside of more than 28%.
One of the leading brokerage firms, YES Securities, has maintained a ‘Buy’ rating on Premier Energies Limited, based on its strong domestic demand, supportive government policies, and robust growth and financial performance.
With the market capitalization of Rs. 46,078.16 crore, the shares of Premier Energies Limited closed at Rs. 1,022.20, down by 2.60 percent from its previous day’s close price of Rs. 1,049.50 per equity share.
What’s the News?
Yes Securities has maintained its ‘Buy’ rating on the stock with the target price of Rs. 1,310, with an upside of 28.15 percent from CMP of Rs. 1,022.20. YES Securities highlighted that India’s goal of 500GW non-fossil energy by 2030, along with rising domestic sourcing mandates, is creating strong long-term support for the sector.
Programs like the PLI scheme for high-efficiency modules, the ALMM mandate favoring local manufacturers, the PM-KUSUM scheme for distributed solar, and state policies for open-access solar are boosting domestic demand and promoting localization.
The brokerage noted that PEL currently imports most raw materials, mainly from China. With its upcoming integrated facility and plans beyond manufacturing, the company is expected to gain cost and business synergies.
While PEL is in discussions for the PLI scheme, no final plan is confirmed. YES Securities estimates that backward integration may improve EBITDA margins by about 50 basis points between FY25 and FY28.
YES Securities noted that PEL has limited exports to ~4.2 percent of FY25 revenue, prioritizing domestic execution, with an order book of Rs 8,600 crore as of June, 2025 fully backed by advances and visibility for 12–15 months. IPO proceeds of ~Rs 1,290 crore are allocated to project-specific accounts.
The brokerage expects PEL’s revenue, EBITDA, and PAT to grow at ~39 percent, 39 percent, and 42 percent CAGR respectively over FY25–28, driven by a 42.8 percent volume CAGR, and initiates coverage with a BUY rating and a target price of Rs 1,310. The stock currently trades at a PER of 22.2x/17.7x and EV/EBITDA of 13.2x/10.5x for FY27/28e.
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About the Company
Premier Energies Limited, based in Hyderabad and incorporated in 1995, manufactures and sells integrated solar cells and modules in India, including bifacial monocrystalline PERC cells, monofacial modules, and custom panels.
It also provides EPC services for solar projects, transmission line and substation upgrades, and solar products like water pumps, lighting systems, and e-vehicles, while developing its own solar power projects.
In Q1 FY26, the company reported revenue of Rs. 1,821 crore, up 9.9 percent YoY from Rs. 1,657 crore in Q1 FY25 and 12.3 percent QoQ from Rs. 1,621 crore in Q4 FY25. Profit grew 55.6 percent YoY to Rs. 308 crore from Rs. 198 crore in Q1 FY25 and 10.8 percent QoQ from Rs. 278 crore in Q4 FY25, reflecting strong quarter-on-quarter and year-on-year performance.
At the moment, the company’s P/E ratio is 45x higher as compared to its industry P/E 40.1x. The company’s ROE and ROCE are 53.6 percent and 41.1 percent respectively, and the D/E ratio of 0.69, indicates the company’s financial performance.
Written by Akshay Sanghavi
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