The brokerage said Premier Energies is looking to capture a strong J-curve-like growth in the new energy segment, while its core solar segment remains solid.
Rising capacity, backward integration and stable domestic content requirement (DCR) realisations will drive the company’s revenue and earnings before interest tax depreciation and amortisation (EBITDA) to grow at a compounded annual growth rate (CAGR) of 49% and 43%, respectively, over financial year 2026-2028, according to Nuvama.
The brokerage added that overcapacity concerns are exaggerated, given the tough funding conditions.Nuvama is of the view that Premier Energies’ margin may ease, but its integration into Wafers, battery energy storage system (BESS), transformers and inverters supports the firm’s growth and lowers its risk.
Being at an early stage and the high-growth industry cycle calls for a higher valuation for the company, the brokerage added.
Of the 11 analysts who have coverage on the stock, seven have a “buy” rating and two each have a “hold” and “sell” rating, respectively.
Shares of Premier Energies ended the previous session 2.8% lower at ₹961.7 apiece. The stock has declined 12.6% in the last month and 27.8% this year, so far.
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