🧾 Reporting Year: FY24–25
🏭 Company: Premier Energies Ltd
📊 Stock Code: BSE 544238
💡 Sector: Renewable Energy / Solar Manufacturing
📅 Result Date: May 17, 2025
💸 CMP (As of May 19, 2025): ₹412
📈 P/E (TTM): 18.2
📉 Down from 52-Week High: 22%
🆙 Up from 52-Week Low: 64%
💥 FY25 PAT: ₹78.26 Cr ↓ 35% YoY
📦 Revenue: ₹989.1 Cr ↓ 18% YoY
💰 EPS: ₹2.49
🔮 Fair Value Estimate: ₹385
☀️ At a Glance
Premier Energies’ FY25 profit after tax slumped 35% to ₹78.26 Cr, down from ₹120.9 Cr in FY24. Revenue also dropped 18% YoY to ₹989.1 Cr. The company blamed it on execution delays and lower module prices. Ouch.
But here’s the twist — despite the fall, its EBITDA margin held up surprisingly well. And the company is still riding on a solid ₹800 Cr order book. So is this a temporary solar eclipse… or the start of a deeper correction?
🏢 About Premier Energies
- Founded: 1995, based in Hyderabad
- Business: Solar PV cell and module manufacturing
- Capacity: 2 GW module + 1.5 GW cell capacity
- Clients: NTPC, Azure, Tata Power Solar, international EPCs
- Recent Expansion: Commissioned new mono-PERC line in FY24
It’s one of India’s largest integrated solar manufacturers and part of the government’s PLI-linked growth tailwind.
🧠 Who’s Running the Show?
| Name | Role |
|---|---|
| Surender Pal Singh | Chairman |
| Chiranjeev Saluja | MD & Promoter |
| Vishal Goyal | Independent Dir. |
| Deepthi Gorthi | CFO |
Good mix of founder skin-in-the-game and professional oversight. CFO Deepthi’s shift from PwC was part of their IPO prep earlier.
💵 FY25 Financials Breakdown (Standalone)
| Metric | FY25 (₹ Cr) | FY24 (₹ Cr) | % YoY Change |
|---|---|---|---|
| Revenue from Operations | 989.1 | 1209.5 | -18% |
| Other Income | 89.36 | 80.6 | +11% |
| Total Income | 1078.4 | 1290.1 | -16% |
| EBITDA (Est.) | 181.7 | 217.3 | -16.4% |
| EBITDA Margin (%) | 18.7% | 17.9% | +80 bps |
| Profit Before Tax | 140.0 | 179.6 | -22% |
| Net Profit | 109.1 | 120.9 | -9.8% |
| EPS (Basic/Diluted) | ₹2.49 | ₹2.76 | -9.7% |
🧨 Major hits came from:
- ₹220 Cr drop in revenue due to subdued EPC orders
- Higher input cost due to imported polysilicon
- ₹11 Cr increase in other expenses
💰 Forward-Looking Fair Value (FV)
Let’s do quick math like a chai-sipping analyst:
- EPS (TTM): ₹2.49
- Assume FY26 EPS grows 15% = ₹2.86
- Peer P/E average (Waaree, Adani Solar, Borosil Renewables): ~17x
- ✅ FV Estimate = ₹2.86 × 17 = ₹48.62
But wait — FV only makes sense in context. CMP is ₹412. That means it’s already pricing in 2–3x future growth.
So either:
- Mr. Market is high on solar fumes ☀️
- Or new contracts and PLI benefits are coming soon…
🔮 Industry & Growth Outlook
- India’s solar module demand is expected to hit 50 GW by 2030
- PLI (Phase 2) subsidy is rolling out across 8+ manufacturers
- Domestic preference + BCD on Chinese imports continues
- SECI auction pipeline is heating up again
- Rooftop residential and commercial capex is increasing
But also…
- Global module prices are falling
- Inventory pile-up risk is rising
- Several new players entering (Tata Power, Vikram Solar expanding)
🧠 EduInvesting Take
“Premier Energies is like the Ranbir Kapoor of solar stocks – underrated, decent performer, but somehow never the blockbuster.”
- The company’s revenue fall isn’t ideal, but margins are stable
- FY25 net profit drop is mainly execution timing — not structural
- FY26 will be key as PLI-linked capacity kicks in
📌 Verdict: Not a multibagger rocketship yet, but a safe bet if India’s solar dream stays intact. Just don’t expect fireworks every quarter.
⚠️ Risks & Red Flags
- Module ASPs are volatile — hurting topline visibility
- PLI-linked benefits are still dependent on execution
- High working capital needs
- Heavy dependence on large EPCs & govt payments
