'Buy' Premier Energies Shares Maintains ICICI Securities Post Q2 Results On Strong Tailwinds

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ICICI Securities Report

Premier Energies Ltd.’s operating profit was 10% higher than consensus expectations.

Highlights:

1. Volume growth of 50% YoY (modules).

2. Rs 5.6 billion Ebitda – up 47% YoY.

3. Sharp increase in orderbook of Rs 132 billion.

4. It is bringing forward its cell expansion from 10GW in FY27 (vs FY28 earlier).

It is in process of building vertically and horizontally. It is building its wafer and ingot business while investing in batteries and aluminium frames.

In Q2, it further acquired existing companies in inverters and transformers. It has acquired KSolare (inverter) and Transcon (transformer company) at Rs 2.5 billion and Rs 5 billion, respectively.

Note that it has also increased its cell to 3.2GW and is looking to expand to 10GW cell by FY27E.

We reiterate Buy with target price of Rs 1,320 (based on 35x FY27E earnings).

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