Shares of Premier Energies have fallen 27% from record high in nine months. The solar cell and solar module manufacturer’s stock hit a record high of Rs 1387.10 on December 17 last year.
Premier Energies shares are trading below all short term and long term simple moving averages, signaling the negative trend in the green energy stock.
In the current session, Premier Energies shares slipped 3.5% to Rs 1010 against the previous close of Rs 1049.75 on BSE. Around 0.37 lakh shares changed hands amounting to a turnover of Rs 3.80 crore on BSE. Market capitalisation (m-cap) of the firm fell to Rs 45,566 crore.
In terms of net profit, the firm clocked a CAGR of 101% in the last five years. It recorded a revenue CAGR of 58.9% during the same period.
Osho Krishan, Sr. Analyst, Technical & Derivatives, Angel One said, “Premier Energies stock is placed near the cluster of its EMAs and 200 DSMA, showcasing a phase of consolidation. On the lower end, Rs 980- Rs 970 is likely to provide cushion to the counter, while on the higher end, a sturdy hurdle is placed around the Rs 1080- Rs 1100 zone. The counter is likely to gain momentum once its decisively breaks through the mentioned range on either side.”
Market expert Raghvendra Singh appears to be positive on the stock. “The stock has witnessed some profit booking and it appears that it is ready to move higher from current levels. One should hold their positions with a stop loss of Rs 990 for an upside target of Rs 1,200. Fresh buying is also advised at the current market price,” he noted.
KKunal V Parar, VP of Technical Research and Algo, Choice Broking said, “On the daily chart, the stock has been consolidating within a range, indicating the absence of a clear directional trend. Currently, the stock is trading below its 200-day moving average, highlighting a negative bias from a medium to long-term perspective. Additionally, the stock is approaching a breakdown from the lower band of a symmetrical triangle formation, which further suggests the possibility of weakness ahead.
The daily momentum indicator RSI is also trending below the 50 level, reflecting weak market breadth and bearish sentiment.
Considering the above technical structure, we expect a downside move in the stock towards the levels of Rs 960-830, while any upward move is likely to face strict resistance at Rs 1095.”
Jigar S Patel from Anand Rathi said, “Support will be at Rs 990 and resistance at Rs 1045. A decisive move above the Rs 1045 level may trigger a further upside to Rs 1080. The expected trading range will be between Rs 990 Rs 1080 in the short-term.”
According to brokerage Anand Rathi, Premier Energies proved its mettle in execution with industry leading margins and return ratios.
“With a Rs 12,000 crore capex plan, it plans to expand cell capacity threefold to 10GW and double module capacity to 11.1GW by FY28, alongside 10GW of ingot-wafer backward integration, positioning it to benefit from policy tailwinds driving indigenisation across the solar value chain; along with vertical integration into BESS and inverters,” Anand Rathi said.
The brokerage said Premier Energies is one of the few companies that cater to third-party cell sales, with a 11 per cent market share in domestic cells produced YTD. That differentiates it from existing companies.
YES Securities has a price target of Rs 1310 with a ‘Buy’ rating on the back of strong growth prospects.
According to YES Securities, “India’s target of 500GW non-fossil capacity by 2030 and the increasing share of DCR mandates (mandatory domestic sourcing) provide a strong multi-year tailwind. Key programs such as the Production-Linked Incentive (PLI) scheme for high-efficiency modules, the ALMM mandate favoring domestic manufacturers, the PM-KUSUM scheme promoting distributed solar adoption, and state-level policies incentivising open access solar projects are structurally boosting domestic demand and localization.”
Premier Energies stock made its market debut in September 2024. Shares of Premier Energies made a stellar debut on September 3. The stock listed at Rs 991 on BSE, a premium of 120.22 per cent over its issue price of Rs 450 per share. On NSE, the stock listed at a premium of 120 per cent over the issue price at Rs 990 on NSE.
Premier Energies manufactures integrated solar cells and solar panels. Its product portfolio includes cell, solar modules, bifacial modules, EPC solutions and O&M solutions. It has five manufacturing units, all of which are situated in Hyderabad, Telangana.