Solar Power Boom! This High-Growth Solar Stock Just Secured Rs 1,234 Crore in Orders!
With institutional investors betting big, is this the next breakout stock in renewables?
Premier Energies has received orders worth Rs 1,234 crore from existing customers for the supply of solar modules. These orders will be executed starting April 2025, reinforcing the company’s strong presence in the domestic solar energy market.
Strong Q3 FY25 Financial Performance
The company reported total revenue of Rs 17,494 million in Q3 FY25, marking a 144.76 per cent year-on-year growth. Operating EBITDA surged by 316.49 per cent to Rs 5,135 million, with margins improving from 17.30 per cent in Q3 FY24 to 29.97 per cent in Q3 FY25. Net profit saw an impressive 490 per cent rise to Rs 2,552 million, with PAT margins increasing to 14.59 per cent.
Expansion Plans and Capacity Growth
Premier Energies is aggressively expanding its production capacity. A 1-gigawatt TOPCon cell and module line is set for completion by Q1 FY26, followed by a 4-gigawatt line by Q1 FY27. By June 2026, total capacity is expected to reach 7 gigawatts per annum for solar cells and 9.1 gigawatts per annum for modules. Additionally, a 2-gigawatt wafer manufacturing facility is planned for FY26, alongside a 36,000 metric ton per annum aluminum frame manufacturing unit to boost profitability.
Growing Order Book and Market Demand
The company’s current order book stands at Rs 69 billion, with orders typically having a 12 to 15-month execution cycle. The demand for solar energy remains strong, driven by favorable government policies and technological advancements. The company expects a stable pricing environment for its products, with most contracts secured with advance payments.
Challenges and Industry Risks
Despite strong growth, the company remains cautious about potential delays in the Approved List of Models and Manufacturers (ALMM), which could impact industry operations. Other challenges include global supply chain concerns and uncertainties regarding the impact of the US Inflation Reduction Act on future expansion plans.
Stock Valuation and Investor Interest
Premier Energies has a market capitalization of Rs 44,005 crore. The company has shown TTM compound sales growth of 120 per cent and TTM profit growth of 1,656 per cent. Return on equity (ROE) stands at 43.7 per cent, while return on capital employed (ROCE) is 25.2 per cent. DIIs have increased their stake from 6.71 per cent in September 2024 to 7.95 per cent in December 2024. However, the stock is currently trading below its 50 DMA and 200 DMA.
Future Outlook
The company remains optimistic about the growing solar energy sector and is focused on completing new projects on time. With strong financials, expanding capacity, and a robust order book, Premier Energies is well-positioned to capitalize on the increasing demand for renewable energy in India.
Disclaimer: The article is for informational purposes only and not investment advice.