Renewable stocks are in focus. Premier Energies share price has declined over 27% so far in 2025. But the brokerage firm Anand Rathi has upgraded Premier Energies to ‘Buy’. It has set a target price of Rs 1,321 for the stock. This implies a potential upside of around 36% from the current levels. According to the brokerage report, several developments related to capacity expansion, technology upgrades and product diversification are shaping the case for this positive outlook.
Let’s take a look at the key reasons why the brokerage is bullish on this stock and what is the rationale behind it –
Anand Rathi on Premier Energies: Scaling up manufacturing under one roof
Premier Energies is reshaping its operations to become a fully integrated solar manufacturer such as handling cell production, module assembly and ancillaries under one umbrella.
As per the report, “Premier Energies is accelerating its growth as a vertically integrated solar manufacturer, aided by technology upgrade, cost‑efficient expansion and disciplined execution.”
Their Hyderabad plant has recently added a new line based on TOPCon (Tunnel Oxide Passivated Contact) solar‑cell technology. The report highlighted that the new line is showing strong performance. Although current utilisation is around 65-70%, Anand Rathi expects this could ramp up to about 90% soon, which would significantly improve output.
Anand Rathi on Premier Energies: Big capacity push in Andhra Pradesh
To add scale, Premier Energies is also consolidating its cell-manufacturing capacity in a new facility at Naidupeta, Andhra Pradesh.
The plant is expected to go live in phases: 4.8 GW by June 2026 and another 2.2 GW by September 2026, bringing total cell capacity to 10.2 GW.
“This consolidation should improve operational efficiency and lower power cost, aiding better margin,” added the report.
Anand Rathi on Premier Energies: Entering ancillaries and energy storage
Beyond solar cells and modules, the company is now branching into related segments such as inverters, aluminium frames and Battery Energy Storage Systems (BESS).
The report noted, “It is enhancing scale and vertical integration to expand into ancillary products like inverters, BESS and aluminium frames, which are likely to form ~25% of future revenue.”
Anand Rathi on Premier Energies: What next for investors
According to Anand Rathi report, the combination of upgraded technology, expanded capacity and better operational efficiency puts Premier Energies in a position to benefit from growth in the solar sector.
The report added, “Premier continues to strengthen its leadership in cell manufacturing through process efficiency and technology upgrades, aided by a strong execution team and consistent R&D investment.” While the solar market remains competitive, the brokerage believes the company can maintain margins and deliver growth.
With these assumptions, it forecasts a Compound Annual Growth Rate (CAGR) in revenue and profit after tax of 34% and 30% respectively for fiscal years 2025 to 2028.