Additionally, it has also maintained its “buy” rating on Thermax, and raised its price target to ₹5,100. The brokerage said that there is a power upcycle that lies ahead and the advantage for that will go to incumbent leaders within their respective categories.
Here’s what it highlighted:
BHEL
UBS has initiated coverage with a “buy” rating and a price target of ₹340 per share, which implies a 38% upside from current levels.
The brokerage said that with the help of rising orders within the thermal power space, its net profit could increase by 8x by financial year 2028.
Premier Energies
Shares of Premier Energies have a potential upside of 30% from Monday’s close after UBS initiated coverage with a “buy” rating and a price target of ₹1,340.
It said that Premier is ahead of its peers in integrated expansion. Additionally, its 10 GW backward integrated capacity can help its revenue and Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) grow by 34% and 36% respectively over financial year 2025-2028.
Waaree Energies
Among the four initiations, UBS has the highest upside potential for Waaree Energies. Its coverage initiation with a “buy” rating, comes with a price target of ₹4,400, which implies a potential upside of 40% from Monday’s closing.
UBS said that Waaree’s capacity-led earnings acceleration is underway and it expects Waaree’s EBITDA margins to expand 640 basis points between financial year 2025-2028.
Suzlon Energy
Among the four stocks, UBS has ascribed the lowest potential upside on Suzlon Energy’s shares. It initiated coverage with a “buy” rating and a price target of ₹78, implying a 20% potential upside.
Suzlon Energy’s revenue and EBITDA could report a 41% and 46% CAGR respectively, over financial year 2025-2028 as annual deliveries rise from 1.5 GW to 4.2 GW during this period.
