Premier Energies Limited

Technology — Solar · NSE

₹901.05−₹13.95 (−1.52%)

DalalBaazaar Score

71 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

Driven by moderate debt load, negative free cash flow.

In simple words: Strong business and financial position, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:49 pm

Understanding the Business

Company site ↗

The 60-second version of Premier Energies Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Premier Energies Limited, together with its subsidiaries, manufactures, sells, and trades in solar cells and modules in India and internationally.

IndustrySolar

SectorTechnology

Employees2,636

Annual revenue₹7,807 Cr

How does it make money?

Turns over ₹7,807 Cr a year. Of every ₹100 of sales, about ₹19 reaches shareholders as profit, with ₹32 left at the operating level before interest, tax and depreciation. Each of its 2,636 employees supports ₹2.96 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹2.96 Cr

Who are its competitors?

The closest listed comparisons in its industry are TATA CONSULTANCY SERV LT, INFOSYS LIMITED, HCL TECHNOLOGIES LTD, WIPRO LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Some evidence

ROCE of 27.4% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

Peer median ROE32.0%

What is the outlook?

18 analysts covering the stock expect revenue to grow about 28.6% and earnings to grow about 8.2% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+28.6%

Est. earnings growth+8.2%

Analysts18

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +447% while net margin moved -2256% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+447%

Margin effect-2256%

DalalBaazaar Score

71/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of -0.22 — historically steadier than the index
✗ Profits have swung sharply from year to year — earnings are hard to forecast
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

75/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

51/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

24.2x

2Y Median

49.2x

27 monthly readings · mean 107.3x · range 25.9x–261.3x

Sector Median

16.5x

median of 4 sector peers

🟢Current valuation is approximately 51% below its 2y median of 49.2x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

⚠️Against its sector it trades 46% above the peer median of 16.5x.

vs. its own history

Cheap

49.2x median over 27 months · -51%

vs. sector peers

Expensive

16.5x median of 4 peers · +46%

vs. generic bands

Fair

15x–35x

EV/EBITDA

17.1x

PEG

—

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 6.4% to 32.1% over 3 years.
Return on equity is rising
ROE has improved from -3.1% to 35.0%.
Return on capital is rising
ROCE has improved from 3.7% to 27.4%.
High return on capital employed
ROCE of 27.4% is the mark of a business that converts capital into profit efficiently.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

3 items require attention · 2 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 385% over 3 years, from ₹764 Cr to ₹3,707 Cr.
🔴Receivables growing faster than salesFinancial
Receivables up 1553% against revenue up 447% — sales are being booked faster than they are collected.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹1,737 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 27.4% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from 6.4% to 32.1%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 51% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.

🔴 Bear CaseWhat could go wrong?

Sales are being booked faster than collected
Receivables are up 1553% against revenue up 447%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
A premium to the sector to defend
It trades 46% above the peer median. That premium needs a reason that persists, or it closes.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Several serious flags at once
2 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 57% a year✓ 76.2% CAGR
Latest reported year was 35.3%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 30%✓ 32.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹1,737 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.5x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 24%✓ 27.4%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

10 / 12 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

5 good · 4 neutral · 2 weak

Market Cap

₹40,687 Cr

Mid Cap

Mid-sized — more growth headroom, but sharper swings than large caps

P/E (Trailing)

24.2x

Fair

Fairly valued against the generic band

P/B Ratio

9.42x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹37.2

Profitable

Profitable on a per-share basis

ROE

35.0%

Strong

Strong capital efficiency

ROCE

27.4%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.86x

Moderate

Moderate leverage

Revenue Growth (YoY)

35.3%

Healthy

Healthy top-line growth

Profit Growth (YoY)

53.0%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.08%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹1,737 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

P/E (Forward)

18.7x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

25.1%

Good

Healthy core-business profitability

Net Margin

19.7%

Good

Strong bottom-line conversion

Current Ratio

1.83

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.22

Defensive

Steadier than the market

52W Range Position

51%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

900.3 / 963.2

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

51.3

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1,427 Cr	₹3,139 Cr	₹6,511 Cr	₹7,807 Cr	+76.2%
EBITDA	₹91 Cr	₹471 Cr	₹1,821 Cr	₹2,506 Cr	+202.3%
EBITDA Margin	6.4%	15.0%	28.0%	32.1%	—
PAT (Net Profit)	-₹13 Cr	₹231 Cr	₹937 Cr	₹1,510 Cr	—
EPS	₹-0.29	₹5.18	₹21.35	₹33.63	—
ROE	-3.1%	35.8%	33.2%	35.0%	—
ROCE	3.7%	22.5%	33.3%	27.4%	—
Total Debt	₹764 Cr	₹1,401 Cr	₹1,954 Cr	₹3,707 Cr	+69.3%
Free Cash Flow	-₹239 Cr	-₹361 Cr	₹728 Cr	-₹1,737 Cr	—

🟢 Revenue has grown at 76.2% a year over 3 years.

🟢 EBITDA has grown at 202.3% a year over 3 years.

🟢 EBITDA Margin has risen from 6.4% to 32.1% over 3 years (+25.7 pts).

🟢 PAT (Net Profit) has turned positive, from -₹13 Cr to ₹1,510 Cr.

🟢 EPS has turned positive, from ₹-0.29 to ₹33.63.

🟢 ROE has risen from -3.1% to 35.0% over 3 years (+38.2 pts).

🟢 ROCE has risen from 3.7% to 27.4% over 3 years (+23.7 pts).

🔴 Total Debt has grown at 69.3% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹10,845 Cr

Total Liabilities

₹6,535 Cr

Cash & Equivalents

₹1,467 Cr

Operating Cash Flow

₹1,261 Cr

Capex

-₹2,998 Cr

Shareholding (proxy)

Institutional Holding

18.9%

Insider Holding

67.4%

Corporate Actions

Dividend Rate

₹0.75

Ex-Dividend Date

08 May 2026

Analyst Consensus

Recommendations

12 Buy · 2 Hold · 4 Sell

Target Price (Mean)

₹1,110.39

+23.2% vs CMP

Target Range

₹814 – ₹1,335

Peer Comparison

Company	P/E	ROE
TATA CONSULTANCY SERV LT	17.3x	45.6%
INFOSYS LIMITED	15.8x	32.0%
HCL TECHNOLOGIES LTD	20.4x	24.6%
WIPRO LTD	14.5x	15.9%

Recent News

1 positive3 mixed2 general

Waaree vs Premier vs Vikram Solar: Which Renewable Energy Equipment Stock Will Deliver Better Returns? TP

Goodreturns, 16 Oct

Compare with

Equitymaster, 17 Oct

Buy Suzlon, Saatvik Green; Sell Premier Energies, Emmvee Photovoltaic Power: Ambit Insights | Target price, upside

Livemint, 24 SeptAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Premier Energies JV targets 6 GWh BESS phase by FY27-28

scanx.trade, 15 OctPartnership

🟡Mixed / dependsA partnership, whose value depends entirely on terms that a headline will not carry. Worth reading the filing before assuming either way.

Premier Energies shares in focus after Q1 profit jumps 50%, revenue rises 35%

Moneycontrol.com, 07 AugResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Premier Energies Share Price rise: key price action today

Univest, 06 OctPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongBusiness Quality · Growth · Profitability

MiddlingFinancial Health · Valuation · Risk

Points for each in the Score ↑

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself. 2 high-severity red flags sit above this conclusion and should be read first.

1 of 5 tripwires tripped — Free cash flow remains positive · see Key things to watch ↑