Stocks to buy: Domestic brokerage firm Motilal Oswal, in its latest note, has initiated coverage on Premier Energies, the country’s second-largest integrated manufacturer of solar cells and modules, with a ‘buy’ rating and has set a target price of ₹1,000 apiece, which indicates an upside potential of 28.2% from the stock’s latest closing price.
While the stock has remained under pressure in recent months, the brokerage’s optimistic outlook is driven by the company’s strong capacity ramp-up, industry-leading backward integration, and a robust order book.
Amid rising demand for renewable energy—fuelled by increasing power requirements and policy initiatives aimed at reducing dependence on fossil fuels—the brokerage expects the company’s module and cell manufacturing capacities to scale up to 11.1 GW and 10.6 GW, respectively, beyond FY27, from the current 5.4 GW and 3.6 GW as of January 2026.
Higher cell-to-module ratio strengthens competitive edge
It also underlined superior backward integration compared with other listed peers. The company had a cell-to-module ratio of 67% at the end of January 2026, which is higher than Waaree Energies and Emmvee Photovoltaic Power, which had 24% and 29%, respectively, at the end of 3QFY26. Motilal said this has been key to delivering an industry-leading EBITDA margin of over 30%.
It further stated that clarity on a US-India trade deal could act as a key catalyst for PEL by accelerating export growth and enabling the company to set up a manufacturing base overseas.
While commodity price volatility, particularly in silver, has raised some concerns, the brokerage has already factored in a moderate EBITDA margin of 20% by FY28, down from 28% in FY26.
“At 10x FY28 EV/EBITDA, we believe valuations are reasonable, given the 30% EBITDA CAGR over FY25-28,” said Motilal Oswal.
Industry-leading operational and profit metrics
“At 30% in 9MFY26, PEL’s EBITDA margin was significantly ahead of peers, while ROE and ROCE also stood at 54%/32% in FY25, ahead of Waaree Energies. The superior margin profile is a function of high utilization of both its cell/module capacities, coupled with its strong presence in the domestic cell segment, where limited capacity has kept profitability well above normalized levels,” said the. brokerage.
Going forward, Motilal expected the company to remain one of the most integrated module manufacturing players, with a projected cell-to-module capacity ratio of 95% (by FY27-end), which augurs well for sustaining high utilization and healthy margins.
Premier Energies share price history
Premier Energies’ share price has remained under pressure recently, closing lower for the last three consecutive months and losing 34% of its value during this period.
The decline has resulted in a 44% correction from its peak of ₹1,384 pieces. Despite the sharp fall, the stock continues to trade 74% above its ₹450 per share”>IPO price of ₹450 per share.
The stock debuted on Indian exchanges on September 3 at a massive 120% premium to its IPO price. The strong momentum continued for the next three months before cooling off and eventually turning into a sharp correction.
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