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solar energy, solar, solar panel(Photo: Reuters)
The market capitalisation of Premier Energies has crossed Rs 50,000 crore after the stock price of the solar cell manufacturer rallied 9 per cent to hit a new record high of Rs 1,190.35 on the BSE in Monday’s intra-day trade.
Since listing, the company’s stock has rallied 42 per cent in the past four trading days.
Currently, the market price of Premier Energies has zoomed 165 per cent against its issue price of Rs 450 per share. The company made a stellar debut on the stock markets on Tuesday, September 3. The company’s shares listed at Rs 991 on the BSE, marking a whopping 120.22 per cent premium over the issue price.
Their total annual installed capacity stands at 2 GW for solar cells and 4.13 GW for solar modules. The company also provides end-to-end solar services for ground-mounted, rooftop, floating, canal bank, canal top, and hybrid power generation systems, as well as operations and maintenance (O&M) services for executed projects.
On Thursday, September 5, Premier Energies informed that the company has received an order from the Uttar Pradesh Department of Agriculture for the supply, installation and commissioning, with five years of comprehensive warranty, of 8,085 solar water pumping systems across various districts in the state. This project, valued at Rs 215 crore, is scheduled for completion by March 2025, the company said in an exchange filing.
This initiative falls under Component-B of the PM-KUSUM (Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan) Scheme that is aimed at ensuring energy security for farmers in India, along with honouring India’s commitment to increase the share of installed capacity of electric power from non-fossil-fuel sources to 40 per cent by 2030 as part of the country’s Intended Nationally Determined Contributions (INDCs).
Analysts believe that Premier Energies is well positioned for future growth due to its strong market position, well diversified customer base along with high technical expertise. With pro-active regulations, policy support and commitments towards renewables energy by the government, the domestic solar manufacturing market is likely to witness an accelerated growth trajectory in the medium-term, according to analysts.
Solar is projected to become the preferred and most economical power source globally and is expected to overtake hydropower, followed by natural gas in CY2026 and coal in CY2027.
The key growth drivers are urbanisation and industrialisation, which are expected to drive the country’s electricity demand in the foreseeable future. That apart, the government’s initiatives such as Make in India, PLI, and Aatmanirbhar Bharat Abhiyan, among others, have further bolstered industrialisation, while India is likely to add 10,000 electric vehicle charging infrastructure by CY2025.
Premier Energies has a diversified customer base, with customer relationships spread both within India and overseas. It has a a strong order book of around Rs 6,200 crore, and relationships in a wide range of markets that bring in overseas revenues, and strong growth with consistent profitability over the past few years, noted analysts.
Manufacturers like Premier Energies with its dominant market position are well equipped to benefit from the expansion in the market. Continued restriction on trade with China by developed economies like the US and Europe would continue to provide export opportunities for the company in the medium-term.
The international solar wafer and cell prices are in declining trend since mid-2022 and current prices might be lower than FY21 levels. Declining raw material prices have positively impacted the financial performance of the company during FY24 and Q1 FY25. Thus any volatility in the raw material prices would be negative for the company, analysts at Choice Equity Broking said in the company’s IPO note.
First Published: Sep 09 2024 | 2:56 PM IST
