Premier Energies shares rose more than 2% during Wednesday’s trading session. The renewable energy stock has appreciated by almost 120% since its IPO price of ₹450. Brokerage firm Nuvama Institutional Equities has recently initiated coverage on the stock, setting a Premier Energies share price target of ₹1,270, which reflects an upside of nearly 32% from the last closing price.
Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One said that Premier Energies shares are trading in a range of ₹950 – ₹1,150 since last six months.
Bhosale believes that the next directional move for Premier Energies shares would come only on breakout beyond this range, as of now, prices are approaching key support, that has been held 3 times in past during dips, this support coincides with key bullish gap left in the May month.
Last month, Premier Energies reported impressive results for the second quarter, with consolidated net profit increasing by 72% year-over-year to ₹353.4 crore, up from ₹205.9 crore during the same quarter last year.
Revenue from operations rose by 20.3% to reach ₹1,836.8 crore, while EBITDA increased by 47.4% to ₹560.7 crore. Operating margins improved to 30.53%, compared to 25% a year prior, highlighting enhanced operational efficiency and growing demand in the renewable energy sector.
New Energy J-curve
Nuvama Institutional Equities noted that Premier Energies (Premier) is strategically shifting to take advantage of the rapid growth in New Energy, even as its core solar segment remains stable. The company’s increasing capacity, backward integration, and consistent DCR-linked revenue support the brokerage’s forecasted FY26–28E revenue/EBITDA growth rates of 49%/43%.
“Although margins are expected to soften in the medium term, a comprehensive integration—encompassing wafers, BESS, transformers, and inverters—will aid in sustaining growth and reducing risk. Initiating with a BRAVEHEART ‘BUY’ (TP: ₹1,270); be wary of imponderable risks,” added Nuvama.
The brokerage pointed out that similar to the valuation pattern of the IT sector during Y2K, Premier’s elevated 24x FY25 EV/EBITDA anticipates significant growth followed by a subsequent earnings alignment. Given their estimates of a 43% EBITDA growth rate, strong cash flow, a solid balance sheet, and an RoE exceeding 30%, we believe that the FY28E EV/EBITDA will present a prudent 10x.
Premier Energies share price performance historically
Over the last week, the stock declined by 1.54%. It has decreased by 2.32% over the past three months and has dropped 10.52% in the last year.
Premier Energies share price opened at an intraday low of ₹967.55 apiece on the BSE, the stock touched an intraday high of ₹987.90 per share.
Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.
