Premier Energies set to rally 36% over next 1 year? 3 factors fuelling Anand Rathi’s bullish prediction

Renewable Stocks in Focus: Premier Energies Gets 'Buy' Rating from Anand Rathi

Despite a 27% decline in share price so far in 2025, Premier Energies has received an upgrade to 'Buy' from brokerage firm Anand Rathi, with a target price of Rs 1,321, indicating a potential upside of 36% from current levels.

• Key Reasons for the Upgrade:
• Capacity Expansion: Premier Energies is reshaping its operations to become a fully integrated solar manufacturer, handling cell production, module assembly, and ancillaries under one umbrella.
• Technology Upgrades: The company has recently added a new line in its Hyderabad plant based on TOPCon solar-cell technology, showing strong performance, and expected to reach 90% utilisation soon.
• Product Diversification: Premier Energies is expanding into related segments such as inverters, aluminium frames, and Battery Energy Storage Systems (BESS), which are expected to form ~25% of future revenue.

According to the Anand Rathi report, the combination of upgraded technology, expanded capacity, and better operational efficiency positions Premier Energies for growth in the solar sector.

• Key Developments:
• The company has consolidated its cell-manufacturing capacity in a new facility at Naidupeta, Andhra Pradesh, with a total capacity of 10.2 GW.
• Premier Energies is expected to benefit from growth in the solar sector, with a Compound Annual Growth Rate (CAGR) in revenue and profit after tax of 34% and 30% respectively for fiscal years 2025 to 2028.

The brokerage firm believes that the company can maintain margins and deliver growth, despite the competitive solar market.

What's Next for Investors?

With the upgrade to 'Buy' and a target price of Rs 1,321, investors are likely to be bullish on Premier Energies, considering the potential upside of 36% from current levels.

The company's focus on capacity expansion, technology upgrades, and product diversification positions it for growth in the solar sector, making it an attractive investment opportunity.