Shares of Premier Energies Ltd. gained as much as 5% after it received a coverage initiation from brokerage firm ICICI Securities with a ‘Buy’ rating on Thursday, February 13. The stock has risen in six out of the last 10 trading sessions.

The brokerage has ascribed a price target of ₹1,228 on the stock, which implies a potential upside of 31% from current levels.

ICICI Securities wrote in its note that Premier Energies has catapulted itself in the last three years to emerge as the third largest player in solar cell manufacturing in India.

The government recently bolstered its support for the sector with a slew of measures – among other outcomes, it has been able to fend off Chinese competition.
The current set of import barriers, despite being significant, are still limited. The new set of barriers would effectively limit competition in the domestic market to Indian solar integrated cell and module manufacturers, post June 2026.

Separately, opportunities from export markets, especially US, are aiding Indian manufacturers.

Over the next two years, Premier Energies is expected to expand its existing cell and module capacity of 2GW and 3GW to 7GW and 8GW, respectively. As a result, earnings will likely grow at a 90% CAGR over FY24–27E.

Premier Energies manufactures integrated solar cell and solar panel. The company’s product portfolio includes Cell, Solar Module, Monofacial modulesBifacial modules, EPC Solutions and O&M Solutions.

Premier Energies is trading at 30 times its financial year 2027 earnings estimate.

Shares of Premier Energies are trading 3.30% lower on Thursday at ₹1,002.65. The stock still remains below its post-listing high of ₹1,388.