Premier Energies Ltd shares turned negative after recording a sharp uptick in Tuesday's opening trade. The stock, which jumped 10.28 per cent to hit Rs 1,177.60, later plunged 15.23 per cent from the said high level to touch a low of Rs 998.20.
"Premier reported Q3 FY25 (December 2024 quarter) EBITDA at INR5bn, (+4x YoY/+35% QoQ) due to a decline in input costs and better operational efficiency. EBITDA margin was 30 per cent (+1267bps YoY/+506bp QoQ). PAT (profit after tax) was Rs 260 crore (+5x YoY/+24 per cent QoQ). Revenue share from exports was 3 crore in Q3 FY25 versus 25 crore in Q3 FY24 and 9 crore in Q2 FY25," said Nuvama Institutional Equities.
"In Q3 FY25, Premier managed to execute orders worth Rs 1,700 crore and new bookings at Rs 2,200 crore. The current order book (OB) stands at 4.5GW valued at Rs 6,900 crore of which 63 per cent is for modules, 36 per cent is for cells and 1 per cent for EPC. Given the expectation of strong demand growth, Premier plans to increase its current solar module and cell manufacturing capacity to 9.1GW/7GW by Jun-26," the domestic brokerage added.
Moreover, Nuvama underscored that Premier plans to further backwards integrate by setting up a 2GW wafer plant by FY26. "To set up 1GW of module/cell capacity, management has indicated a capex requirement of Rs 150 crore/ Rs 670 crore," it added.
The brokerage also said Premier remains optimistic about the solar sector's growth prospects in India, citing rising demand, favourable government policies and improving technology.
Nuvama said the company plans to focus on the domestic market, given the further push for demand post-implementation of ALMM for cell from Jun-26, Nuvama further said.
It is required to mention here that the brokerage has not rated the company so far. "Premier to focus on domestic market; intends to retain current revenue mix of 97 per cent/3 per cent domestic/exports. Management expects ALMM for cells from Jun-26 to raise demand from DCR market; the stock is not rated," Nuvama stated.
Premier's stock saw high trading volume on BSE today as around 4.07 lakh shares were last seen changing hands. The figure was higher than the two-week average volume of 1.88 lakh shares. Turnover on the counter came at Rs 43.47 crore, commanding a market capitalisation (m-cap) of Rs 46,481.60 crore.
Incorporated in April 1995, the company 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.