Premier Energies Ltd
Premier Energies Ltd
Industrials F&OIncorporated in April 1995, Premier Energies Limited specializes in manufacturing integrated solar cells and solar panels. Its product portfolio includes solar cells, solar modules, monofacial and bifacial modules, as well as EPC and O&M solutions.[1]
Premier Energies delivers exceptional profit growth of 133% CAGR over 5 years with a strong ROE of 42%, supported by 58.82% buy ratings from analysts. However, the premium valuation at 11.14x book value and a PE of 31.8x warrants caution on entry timing.
Key Fundamentals
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Key Insights
Strengths
2- Company has delivered good profit growth of 133% CAGR over last 5 years
- Company has a good return on equity (ROE) track record: 3 Years ROE 45.8%
Weaknesses
2- Stock is trading at 11.1 times its book value
- Company might be capitalizing the interest cost
Growth Rate
AI Analysis — Bull vs Bear
anthropic claude-opus-4.6 3d agoPremier Energies delivers exceptional profit growth of 133% CAGR over 5 years with a strong ROE of 42%, supported by 58.82% buy ratings from analysts. However, the premium valuation at 11.14x book value and a PE of 31.8x warrants caution on entry timing.
- Extraordinary profit growth with 5-year compounded profit CAGR of 133%, indicating rapid earnings expansion in the solar energy value chain
- Robust 3-year compounded sales CAGR of 76%, demonstrating strong revenue momentum and market share gains
- Consistently high return on equity at 42% last year and 46% over 3 years, reflecting efficient capital deployment
- Strong analyst consensus with 58.82% buy ratings (10 out of 17 analysts recommending buy)
- TTM profit growth of 63% shows continued earnings acceleration even on a larger base
- Market cap of Rs 48,248 crore positions the company as a credible mid-to-large cap solar play with institutional interest
- 5-year compounded sales CAGR of 62% validates the structural demand tailwind from India's renewable energy push
- TTM sales growth of 20% on an already elevated base suggests the company is sustaining top-line momentum
- Stock trades at 11.14x price-to-book value, a steep premium that leaves limited margin of safety for new investors
- PE ratio of 31.8x is demanding and prices in significant future growth, increasing downside risk if execution falters
- 23.53% of analysts (4 out of 17) have a sell rating, indicating meaningful disagreement on valuation
- Dividend yield of just 0.09% offers negligible income return, making the stock entirely dependent on capital appreciation
- Potential capitalization of interest costs raises concerns about true profitability and reported earnings quality
- 1-year stock CAGR of only 5% despite 63% TTM profit growth suggests the market may have already priced in near-term upside
- Absence of reported debt-to-equity and EPS data limits visibility on leverage and per-share earnings trajectory
- 52-week high and low data unavailable, making it difficult to assess current price relative to trading range and support levels
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
anthropic claude-opus-4.6 1d ago- EBITDA margin contracts 300bps May 26
Q4 FY26 EBITDA margin declined 300 basis points to 30% despite revenue growth, signaling potential margin pressure from capacity ramp-up costs.
- Promoter stake drops to 58.65% May 25
Promoter group sold 2.39 crore shares (5.3% stake) at ₹955/share, reducing combined promoter holding from 63.94% to 58.65%.
- Large RPTs worth ₹76,890M sought Jun 6
Company seeks shareholder approval via postal ballot for material related party transactions aggregating ₹76,890 million for FY2026-27, requiring governance scrutiny.
- Q4 FY26 revenue up 38% YoY May 26
Revenue grew 38% YoY to ₹2,230 crore and PAT surged 64% to ₹450 crore in Q4 FY26, with EPS rising 64% to ₹10.08.
- Nomura, Capital Group buy 5.3% stake May 26
22 institutional investors including Nomura, Capital Group, Abu Dhabi Investment Authority, and Quant MF acquired ₹2,291 crore worth of shares at ₹955/share via block deals.
- Massive capacity expansion underway May 25
Cell capacity expanding from 3.6 GW to 10.6 GW (4.8 GW by Jun 2026, 2.2 GW by Sep 2026), with aggressive FY27 capex of ₹5,100 crore across cells, batteries, and inverters.
- ALMM policy boosts domestic demand May 25
MNRE retained June 1, 2026 ALMM List-II deadline requiring domestically approved solar cells, creating structural demand catalyst and stronger pricing power for domestic manufacturers.
- Grade A global solar ranking Jun 4
Wood Mackenzie ranked Premier Energies among Top 3 Indian and Top 25 global Grade A solar PV module manufacturers in its 2026 ranking.
- Order book up 66% YoY May 26
Growth order book stands at ₹14,010 crore, up 66% YoY, with ₹2,577 crore in new Q4 FY26 orders for 1,600 MW solar cells and modules for execution in FY27-28.
- Bullish technical breakout pattern Jun 4
Canara Bank Securities recommends buying at ₹1,061.50 with targets of ₹1,137.50-1,223.30 after rounding bottom and bullish flag pattern breakouts above key moving averages.
- Transformer capacity up 7x by Jul May 26
Transcom subsidiary expanding transformer capacity nearly sevenfold to 16.75 GVA by July 2026, focusing on high-margin HV and EHV segments.
- ₹742 Cr block trade on NSE May 25
Block trade of approximately 77.69 lakh shares executed at ₹955/share worth ₹741.95 crore during NSE pre-open session, reflecting institutional rebalancing.
- No promoter share encumbrance in FY26 Jun 4
Company disclosed zero encumbrance on promoter shares in FY26, with total promoter holding at 289.6 million shares representing 63.94% pre-block deal.
- Investor meets scheduled for June Jun 4
Premier Energies will hold investor meetings in Mumbai and London in June 2026, with discussions limited to publicly available information.
TL;DR: Premier Energies is firing on all cylinders with 38% revenue growth, 64% PAT growth, and a 66% YoY increase in order book, backed by massive capacity expansion from 3.6 GW to 10.6 GW in cells. Institutional confidence is strong with Nomura, Capital Group, and sovereign wealth funds buying ₹2,291 crore in promoter stake. Key risks include EBITDA margin compression (down 300bps) from ramp-up costs and execution risk on ₹5,100 crore capex. The trend is firmly improving with ALMM policy tailwinds, Grade A global recognition, and technical breakout patterns suggesting continued upside momentum.
Quarterly Results
| Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 611 | 694 | 712 | 1,127 | 1,657 | 1,527 | 1,713 | 1,621 | 1,821 | 1,837 | 1,936 | 2,230 |
| Expenses | 540 | 595 | 589 | 942 | 1,299 | 1,147 | 1,200 | 1,092 | 1,272 | 1,276 | 1,343 | 1,555 |
| Operating Profit | 71 | 99 | 123 | 184 | 358 | 381 | 514 | 528 | 548 | 561 | 593 | 675 |
| OPM % | 12% | 14% | 17% | 16% | 22% | 25% | 30% | 33% | 30% | 31% | 31% | 30% |
| Other Income | 6 | 8 | 2 | 12 | 12 | 26 | 36 | 59 | 49 | 84 | 30 | 44 |
| Interest | 18 | 21 | 37 | 45 | 45 | 42 | 47 | 43 | 37 | 32 | 47 | 41 |
| Depreciation | 15 | 16 | 28 | 37 | 79 | 90 | 152 | 177 | 158 | 146 | 70 | 79 |
| PBT | 44 | 71 | 61 | 115 | 246 | 275 | 351 | 368 | 403 | 467 | 505 | 598 |
| Tax % | 28% | 25% | 29% | 9% | 19% | 25% | 27% | 25% | 24% | 24% | 22% | 24% |
| Net Profit | 31 | 53 | 43 | 104 | 198 | 206 | 255 | 278 | 308 | 353 | 392 | 457 |
| EPS in Rs | 1.19 | 2.01 | 1.64 | 3.95 | 5.93 | 4.57 | 5.66 | 6.16 | 6.83 | 7.8 | 8.65 | 10.08 |
Profit & Loss
| Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|
| Sales | 947 | 701 | 743 | 1,429 | 3,144 | 6,519 | 7,824 |
| Expenses | 853 | 648 | 713 | 1,350 | 2,666 | 4,738 | 5,447 |
| Operating Profit | 94 | 54 | 30 | 78 | 478 | 1,781 | 2,377 |
| OPM % | 10% | 8% | 4% | 5% | 15% | 27% | 30% |
| Other Income | 19 | 35 | 25 | 36 | 29 | 134 | 207 |
| Interest | 35 | 22 | 43 | 69 | 121 | 177 | 158 |
| Depreciation | 17 | 12 | 28 | 53 | 96 | 498 | 452 |
| PBT | 61 | 56 | -16 | -8 | 289 | 1,240 | 1,973 |
| Tax % | 26% | 54% | -8% | 72% | 20% | 24% | 23% |
| Net Profit | 45 | 26 | -14 | -13 | 231 | 937 | 1,510 |
| EPS in Rs | 1.5 | 0.94 | -0.55 | -0.49 | 8.78 | 20.79 | 33.33 |
| Div. Payout % | 0% | 0% | 0% | 0% | 0% | 2% | 1% |
Balance Sheet
| Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|
| Equity Capital | 25 | 25 | 26 | 26 | 26 | 45 | 45 |
| Reserves | 206 | 197 | 368 | 385 | 620 | 2,777 | 4,262 |
| Borrowings | 256 | 347 | 455 | 765 | 1,401 | 1,954 | 3,707 |
| Other Liabilities | 342 | 406 | 491 | 934 | 1,489 | 2,065 | 2,830 |
| Total Liabilities | 828 | 975 | 1,340 | 2,110 | 3,537 | 6,841 | 10,845 |
| Fixed Assets | 263 | 425 | 479 | 592 | 1,203 | 978 | 1,747 |
| CWIP | 21 | 0 | 114 | 349 | 20 | 242 | 2,144 |
| Investments | 6 | 9 | 55 | 59 | 9 | 845 | 670 |
| Other Assets | 538 | 541 | 693 | 1,110 | 2,305 | 4,775 | 6,285 |
| Total Assets | 828 | 975 | 1,340 | 2,110 | 3,537 | 6,841 | 10,845 |
Cash Flow
| Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|
| Operating | -66 | 237 | 5 | 37 | 90 | 1,348 | 1,261 |
| Investing | -56 | -353 | -218 | -304 | -447 | -2,410 | -2,156 |
| Financing | 134 | 109 | 279 | 252 | 549 | 1,608 | 1,559 |
| Net Cash Flow | 13 | -7 | 66 | -16 | 192 | 546 | 664 |
| Free Cash Flow | -90 | -83 | -178 | -237 | -359 | 728 | -1,736 |
| CFO/OP | -50 | 467 | 57 | 60 | 24 | 98 | 70 |
Ratios
| Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|
| Debtor Days | 74 | 84 | 71 | 15 | 71 | 45 | 46 |
| Inventory Days | 56 | 44 | 135 | 197 | 157 | 121 | 159 |
| Days Payable | 76 | 114 | 168 | 124 | 152 | 88 | 90 |
| Cash Conversion Cycle | 55 | 14 | 38 | 88 | 76 | 78 | 115 |
| Working Capital Days | 52 | -24 | -28 | -58 | -12 | -22 | 27 |
| ROCE % | — | 13% | 4% | 6% | 25% | 41% | 33% |
Documents
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Company Information
Incorporated in April 1995, Premier Energies Limited specializes in manufacturing integrated solar cells and solar panels. Its product portfolio includes solar cells, solar modules, monofacial and bifacial modules, as well as EPC and O&M solutions.[1]