Solar Stocks In Red: Suzlon, Premier Energies, Waaree Energies Shares Decline. Buy, Sell Or Hold?

Solar stocks, including Suzlon Energy, Premier Energies and Waaree Energies, traded lower on Wednesday amid weakness in the broader Indian stock market.

Waaree Energies emerged as the biggest laggard among the three, declining as much as 2.03% on the BSE. Premier Energies followed with a 1.17% decline, while Suzlon Energy shares fell as much as 0.8%.

The stocks have also remained under pressure over the past month. Suzlon Energy share price has declined more than 12%, while Waaree Energies and Premier Energies shares have fallen 9% and over 7%, respectively.

Here's what brokerages have to say on these stocks after their announcement of Q1 results.

Suzlon Energy

Suzlon Energy delivered a strong start to FY27, reporting its highest-ever Q1 deliveries of 506 MW, up 14% YoY. Revenue in Q1FY27 grew 22.3% YoY to Rs 3,829 crore, led by a 27.2% rise in Renewable Energy Solutions revenue to Rs 3,147 crore, while RE AMS revenue increased 8.1% YoY to Rs 632 crore. 

The company's margin in the June quarter fell 358 bps YoY to 15.5%, with flat EBITDA of Rs 595 crore, as Suzlon 2.0 investments and deferred deliveries diluted operating leverage.

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Given its net-cash balance sheet, ~19% ROE and ~25% earnings CAGR, brokerage firm Geojit Financial Services values Suzlon Energy stock at 28x FY28E Adjusted EPS of Rs 2.0, implying a target price of Rs 56.

After the announcement of Q1 results, the brokerage firm upgraded Suzlon Energy shares to ‘Buy'. 

Premier Energies

Premier Energies reported a strong set of results in the June quarter. It produced solar cells of 0.84 GW, up 89% YoY, and modules of ~1 GW, up 35% YoY. Also, it expanded its module capacity by 5.6 GW, with aggregate capacity reaching 11 GW by the end of June 2026. Furthermore, it is expanding capacity for cell and wafer to 10.6 GW and 10 GW by Q2FY27 and FY28. 

As a result, the company's revenue grew by 35% YoY to Rs 24.6 billion, EBITDA grew by 30% YoY to Rs 7.1 billion, and earnings grew by 53% to Rs 4.7 billion.

ICICI Securities believes that the wafer-to-cell spread remains healthy, while the spread on cell-to-module has declined sharply. The order book (OB) stands at Rs 150 billion, up 74% YoY, with order inflow (OI) during Q1 at Rs 33 billion, up 67% YoY.

The brokerage firm maintained a ‘Buy' call on Premier Energies shares with an unchanged target price of Rs 1,250 apiece.

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Waaree Energies

Waaree Energies' reported quarterly performance was complemented by Rs 3.5 billion reciprocal tariff reversal, masking a weak operational quarter characterised by subdued utilisation and softer exports, analysts said. 

While the company's management expects a stronger H2FY27, led by higher DCR cell production, normalisation of US shipments and commercialisation of BESS business, execution will continue to remain critical. 

“In our view, the investment debate has shifted from capacity creation to earnings delivery,” said Anand Rathi.

Accordingly, the brokerage firm trimmed its estimates and valuation multiple for FY27 and FY28. It maintained a ‘Buy' call on the stock with Waaree Energies share price target of Rs 3,333, supported by its integrated manufacturing platform, record Rs 615 billion order book and long-term structural growth drivers.

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