Premier Energies

Basis of our Recommendation

Premier Energies is positioned for significant growth, driven by India's aggressive solar capacity targets and supportive domestic manufacturing policies. Management's positive outlook is underpinned by a robust order book of INR 150 billion and strategic expansions into the transformer business, which is expected to triple in size by FY28. The company's aggressive capital expenditure phase, including the commissioning of a 7GW TOPCon cell facility, is anticipated to enhance revenue growth and maintain stable margins. Despite facing competitive pressures and potential regulatory shifts, the outlook remains strong due to high visibility in government-backed solar schemes and planned capacity additions. Vista's financial outlook reflects expectations of accelerating revenue growth and stable margins, supported by the company's strategic initiatives and favorable market conditions. The solar energy sector's growth, driven by increasing demand and improving pricing power, further bolsters this outlook. Over the next 12-24 months, key opportunities include successful execution of capacity expansions and diversification into battery manufacturing, while watchpoints include potential execution delays and industry oversupply risks