PREMIERENE - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 3.4

📊 Core Financials Analysis

Profitability

ROE: 9.49% and ROCE: 12.4% — moderate, not exceptional for a mid-cap growth company.

EPS: ₹3.07 — low earnings per share relative to price.

PAT Qtr: ₹23.5 Cr vs ₹62.9 Cr — significant sequential drop, though YoY profit variation shows a sharp spike (520%), likely due to a low base effect.

Balance Sheet & Cash Flow

Debt-to-equity: 0.00 — zero debt is a major strength, offering financial flexibility.

Dividend Yield: 0.10% — negligible, indicating reinvestment focus.

Cash flows are likely volatile given earnings inconsistency and high valuation multiples.

📉 Valuation Indicators

Metric Value Interpretation

P/E Ratio 343 Extremely overvalued vs industry PE of 41.2

P/B Ratio ~26.1 Very high — not justified by ROE

PEG Ratio 4.01 Overvalued relative to growth

Intrinsic Value ₹850–₹900 (est.) Current price ~15–20% above fair value

🧠 Business Model & Competitive Edge

Company Profile: Premier Energies Ltd is a leading manufacturer of solar PV cells and modules, with a growing presence in renewable energy solutions.

Strengths

Strong tailwinds from India’s solar energy push and government incentives.

Zero debt and rising institutional interest (FII + DII holding up).

Strategic expansion into high-efficiency solar technologies.

Challenges

High valuation not backed by consistent earnings.

Low EPS and ROE despite sector growth.

Earnings volatility and thin margins in manufacturing-heavy solar segment.

📈 Technical & Sentiment Overview

RSI: 54.2 — neutral zone, no strong momentum.

MACD: 10.8 — mildly bullish, but trend may be flattening.

DMA 50 & 200: Price slightly above both — trend recovery underway.

Volume: Below weekly average — cooling investor interest.

FII/DII Holding: Both increased — rising institutional confidence.

💡 Entry Zone & Long-Term Guidance

Suggested Entry Range: ₹900–₹950 — closer to intrinsic value and technical support.

Holding Strategy

Suitable for long-term investors bullish on India’s solar manufacturing boom.

Price targets for FY27 range from ₹1,200 to ₹1,450 based on projected earnings.

Monitor capacity expansion, margin trends, and policy tailwinds.

Premier Energies is a high-potential but richly valued solar play. If you're building a portfolio focused on clean energy and can tolerate valuation risk, this one may be worth accumulating gradually. You can explore its latest financials and analyst coverage on Trendlyne

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or Mint’s stock dashboard

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1

trendlyne.com

2

www.livemint.com

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