PREMIERENE - Investment Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Investment Rating: 4.5

📊 Fundamental Analysis of Premier Energies Ltd (PREMIERENE)

Premier Energies is a high-growth renewable energy company with strong profitability and aggressive expansion plans. Here's how it stacks up

Metric Value Interpretation

ROE 54.0% Exceptional shareholder return

ROCE 41.5% Outstanding capital efficiency

PEG Ratio 0.15 Deeply undervalued relative to growth

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P/E Ratio 45.3 High, but justified by growth and margins

Dividend Yield 0.05% Minimal, typical for reinvestment-focused growth stocks

Debt-to-Equity 0.69 Moderate leverage, manageable for capex-heavy sector

EPS ₹23.2 Strong earnings base, improving YoY

Qtr Profit Var +55.3% Excellent quarterly growth momentum

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📈 Technical & Valuation Insights

Current Price: ₹1,053

52W High/Low: ₹1,388 / ₹756

DMA 50 / DMA 200: ₹1,051 / ₹1,021 — trading near both, indicating consolidation

RSI (47.2): Neutral zone, no strong momentum

MACD (5.90): Slightly bullish crossover

Volume: Below average, suggesting low volatility

📉 Intrinsic Value Estimate: ₹1,103.17 — currently undervalued by ~3%

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🎯 Ideal Entry Price Zone

Based on valuation and price trends

₹980–₹1,020: Ideal accumulation zone, near 200 DMA and support levels

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₹920–₹950: Strong buy zone if broader market corrects or stock dips

Avoid chasing above ₹1,150 unless there's a breakout with volume confirmation.

🧭 Exit Strategy / Holding Period

If you already hold PREMIERENE

Holding Period: 5–10 years to benefit from solar expansion, vertical integration, and policy tailwinds

Exit Strategy

Partial Exit: Near ₹1,350–₹1,500 if price rallies to 52W high or valuation stretches

Full Exit: If ROE drops below 25% or PEG rises above 1.5 without earnings growth

Stop-Loss: ₹920 to protect downside

🚀 Long-Term Growth Catalysts

Vertical Integration: 2 GW silicon wafer JV with SAS, 3.2 GW TOPCon cell line

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Capacity Expansion: Targeting 11.1 GW module capacity by 2026

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Diversification: Entry into battery storage (6 GWh) and solar inverters (3 GW)

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Margin Strength: 27.3% EBITDA margin in FY25, up from 15.6%

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Strong Order Book: ₹8,603 Cr (5,545 MW) ensures revenue visibility

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⚠️ Risks to Monitor

Capex Intensity: ₹4,500 Cr planned; execution risk exists

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Technology Obsolescence: Rapid innovation in solar may require upgrades

Low Dividend Yield: Not ideal for income-focused investors

High P/E: Valuation premium must be justified by sustained growth

Would you like a comparison with peers like Waaree, Adani Green, or Borosil Renewables to assess relative positioning?

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www.ainvest.com

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www.alphaspread.com

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in.tradingview.com

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