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Waaree Energies, Premier Energies decline up to 6%; Kotak initiates 'Sell'

Kotak Institutional Securities has initiated coverage on Premier Energies and Waaree Energies with a 'Sell' call for a target price of Rs 770 and Rs 2,550 per share respectively

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Sirali Gupta Mumbai
3 min read Last Updated : Jan 08 2025 | 3:57 PM IST
Premier Energies and Waaree Energies shares slipped up to 5.6 per cent in Wednesday's trade on BSE amid competition fears. At close, Premier Energies stock price was down 3.79 per cent at Rs 1,253.9 per share on BSE, and Waaree share price was down 3.79 per cent at Rs 1,253.9 per share. In comparison, the BSE Sensex was down 0.06 per cent at 78,148.49. 
 
Kotak Institutional Securities has initiated coverage on Premier Energies and Waaree Energies with a 'Sell' call for a target price of Rs 770 and Rs 2,550 per share respectively. 
 
As per the brokerage, Premier Energies and Waaree Energies' valuations are at a premium across Indian pure-play solar equipment companies, extrapolating recent good times.
 
The brokerage believes that the current valuation of Indian solar manufacturing companies implies that the sector will continue to see exponential growth over the medium term, and estimated growth at an 18 per cent compound annual growth rate (CAGR) in capacity addition over FY2024-30E. However, the sustenance of unit economics at current levels is unlikely, given the increasing competitive intensity.
 
Analysts at Kotak further reckon that Indian solar companies are well-positioned for strong growth in domestic and US markets, aided by trade and non-trade barriers. Over the medium term, integrated Indian manufacturers and companies with local US manufacturing presence would continue to enjoy a competitive advantage over peers, resulting in superior profitability.
 
Premier Energies Ltd. is Indian company specialising in renewable energy, particularly solar power. It manufactures high-quality solar photovoltaic (PV) modules for various applications, including residential, commercial, and industrial use. The company is also involved in the development and execution of solar power projects, offering end-to-end solutions, from design and installation to operations and maintenance. Premier Energies exports solar modules internationally, contributing to the global shift towards renewable energy. With a strong focus on sustainability, Premier Energies plays a key role in India’s transition to cleaner energy sources, supporting both domestic and global renewable energy goals.

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Waaree Energies specialises in the manufacturing of solar modules and providing end-to-end solutions for solar power generation. Founded in 2007, Waaree Energies has become a prominent name in the renewable energy sector, known for its high-quality solar products and services. The company offers a wide range of solar solutions, including photovoltaic (PV) modules, solar power plants, and energy storage systems, catering to residential, commercial, and industrial sectors. 
 

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First Published: Jan 08 2025 | 12:29 PM IST

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