☀️ At a Glance
Premier Energies is India’s #2 integrated solar cell and module player, riding the clean-tech megatrend. With insane growth (5Y profit CAGR of 91%, ROE of 54%), it’s now spending ₹12,500 Cr to become a vertically integrated solar monster. But with a 50x P/E and wafer-thin dividend, is this stock already priced like a sunrise or still pre-dawn?
1. Introduction with Hook
India’s solar boom is real. And while Adani Green and Waaree grab headlines, Premier Energies has quietly 10X’d its revenue in just 3 years. It’s now doing everything – from cells to modules to frames to wafers – and plans to be the Reliance of Solar by 2028. No kidding. But here’s the question: Is the market already charging a premium for future sunshine?
2. WTF Do They Even Do? (Business Model)
Premier Energies is a solar cell and module manufacturing company with forward and backward integration goals. Here’s what they’re into:
- ✅ Solar Cells – 3.2 GW TOPCon cell capacity (as of Jun 2025)
- ✅ Solar Modules – 3.36 GW module capacity (monofacial + bifacial)
- ✅ EPC & O&M – Engineering + maintenance services
- ✅ JV with Nuevosol – Making aluminium solar frames (80% owned)
- ✅ JV with SAS – 2 GW wafer facility (74% owned)
- ✅ BESS Subsidiary – New Battery Energy Storage biz
Basically: They want to own every damn piece of the solar value chain.
3. Financials – Growth, Profit, Margins
Let’s just say this company is not here to make ₹2 profits on ₹200 sales:
| Metric | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Revenue (₹ Cr) | 701 | 743 | 1,429 | 3,144 | 6,519 |
| PAT (₹ Cr) | 26 | -14 | -13 | 231 | 937 |
| OPM % | 8% | 4% | 5% | 15% | 27% |
| ROE % | 0.9% | -0.5% | -0.5% | 37% | 54% |
🧠 TL;DR: From losses in FY22–23 to ₹937 Cr PAT in FY25, and a sexy 27% OPM — this is a rare solar player with real margins.
4. Valuation – Cheap, Meh, or Crack?
- Current Price: ₹1,057
- P/E: 50.8x
- Book Value: ₹62.6 → P/B: 16.88x
- ROE: 54%
📉 So… not cheap. But maybe justifiable for a company growing 306% profit YoY, with insane ROCE (41%) and fully funded capex.
💡 Fair Value Range Estimate (FY26E EPS ~ ₹32–₹36):
- At 35x–45x P/E → ₹1,120–₹1,620
Stock’s already in that band. So unless the 10GW+ vision comes true, no margin of safety here.
5. What’s Cooking – News, Triggers, Drama
🛠️ Massive Expansion Plans:
- ₹12,500 Cr capex by 2028
- 10 GW capacity target across value chain
📦 New JVs:
- Aluminium frame factory with Nuevosol
- 2 GW wafer plant with SAS
🔋 Battery push:
- Announced entry into BESS (Battery Energy Storage Systems)
🚀 Order book? Strong. ₹1,234 Cr worth of solar modules bagged recently.
💬 Analyst Meets + Concall tone: Ultra bullish.
6. Balance Sheet – How Much Debt, How Many Dreams?
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| Total Assets (₹ Cr) | 2,110 | 3,537 | 6,841 |
| Borrowings (₹ Cr) | 765 | 1,402 | 1,954 |
| Net Worth (₹ Cr) | 411 | 646 | 2,822 |
| D/E Ratio | ~1.8x | ~2.2x | ~0.7x |
🧾 TL;DR: Earlier debt-heavy, but raised equity in FY25 → now relatively de-leveraged.
7. Cash Flow – Sab Number Game Hai
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| CFO (₹ Cr) | ₹37 | ₹90 | ₹1,348 |
| FCF (Rough est.) | Negative till FY24 | Turning positive FY25 | |
| CFI (Capex burn) | ₹-304 Cr | ₹-447 Cr | ₹-2,410 Cr |
They’re spending like Ambani in 2006. But FY25 CFO spike shows the biz is now self-sustaining.
8. Ratios – Sexy or Stressy?
- ROCE: 41.5% 🚀
- ROE: 54% 🔥
- Working Capital Days: Increased from 47 to 80 😬
- Inventory Days: 121 → Still heavy
- Cash Conversion Cycle: 78 days → Needs watching
⚠️ Stress Point: As topline grows, they must avoid WC bloat.
9. P&L Breakdown – Show Me the Money
- Gross Sales: ₹6,519 Cr
- Operating Profit: ₹1,781 Cr
- Net Profit: ₹937 Cr
- EPS: ₹20.79 (FY25)
⚡ Important: Quarterly OPM jumped from 12% (Q1FY24) → 33% (Q4FY25). That’s next-level operating leverage.
10. Peer Comparison – Who Else in the Game?
| Company | Sales (Cr) | ROE | OPM | P/E | Market Cap |
|---|---|---|---|---|---|
| Waaree Energies | 14,445 | 27.6% | 18.8% | 47x | ₹88,000 Cr |
| Premier Energies | 6,519 | 54.0% | 27.3% | 50.8x | ₹47,600 Cr |
| Waaree Renewables | 1,597 | 64.9% | 19.4% | 43.8x | ₹10,200 Cr |
| Shilchar Tech | 623 | 52.8% | 29.6% | 43.8x | ₹6,441 Cr |
📌 Verdict: Premier is punching way above its size, matching or beating peers on margins and ROE.
11. Misc – Shareholding, Promoters
- Promoter Holding: 64.25% (stable)
- FII stake rising: 4.38% in Jun 2025 (from 2.31% in Dec)
- DII stake: Jumped to 12.96% in Jun 2025
📢 Number of shareholders = 3.8 Lakh+. That’s retail darling territory.
12. EduInvesting Verdict™
Premier Energies isn’t a “solar story.” It’s a solar empire in the making. Crazy topline growth, killer margins, JVs in every direction, and batteries on the horizon. But with a 50x P/E and 17x P/B, you’re paying up for 2027 dreams today.
⏳ If they execute — this is a 10GW beast.
💸 If they stumble — you’re left holding sunshine.
🔍 Fair Value Range (FY26 EPS ₹32–36) = ₹1,120 – ₹1,620
Anything above ₹1,600 is pricing in perfection.
✍️ Written by Prashant | 📅 9 July 2025
Tags: Premier Energies, solar stocks India, renewable energy, clean tech, BESS, solar module manufacturers, TOPCon, IPO stocks, Waaree vs Premier, stock analysis
