Premier Energies Shares Extend Decline; JPMorgan Sees 28% Upside Amid Valuation Comfort

Premier Energies Shares Extend Decline; JPMorgan Sees 28% Upside Amid Valuation Comfort​

Stock Falls for Fourth Time in Five Sessions​

Shares of Premier Energies Ltd continued their downward trajectory on Wednesday, March 4, slipping another 2 percent in line with broader market weakness. The stock has now declined in four of the last five trading sessions.

On Wednesday, the shares were trading 2.4 percent lower at ₹695.8. Over the past one month, the stock has corrected 11 percent and remains nearly 40 percent below its post listing high of above ₹1,150.

JPMorgan Maintains Overweight Rating with ₹915 Target​

Despite the recent correction, JPMorgan has reiterated its overweight rating on Premier Energies, setting a price target of ₹915 per share. This implies a potential upside of 28 percent from the previous closing price.

The brokerage stated that the correction from record highs has made the company’s valuations more attractive.

ALMM List 2 to Support Domestic Solar Cell Demand​

JPMorgan highlighted that the Approved List of Models and Manufacturers List 2 will become applicable from June 1. The measure is expected to support demand for locally manufactured solar cells.

The Approved List of Models and Manufacturers is a regulatory framework aimed at ensuring that government backed renewable energy projects use only approved solar products. According to the brokerage, this policy continues to act as a structural demand driver for domestic manufacturers.

However, it also noted that the supply of locally made solar cells is increasing rapidly. This could exert pressure on the current pricing premiums in the segment.

US Tariffs May Increase Local Cell Availability​

The brokerage added that recent US tariffs could further increase local cell availability in India.

The US Commerce Department has imposed countervailing duties on solar cells and panels imported from India, Laos, and Indonesia, citing government subsidies that allegedly provide Asian manufacturers with an unfair pricing advantage over American producers.

This action forms part of a broader effort to protect domestic solar manufacturing in the United States. It also adds to a series of trade measures introduced over the past decade targeting low cost solar imports linked largely to Chinese supply chains.

Premier Energies has clarified that it currently has no export exposure.

Capacity Expansion to Support Earnings Through 2026​

Premier Energies stated that it has material new cell and module capacities scheduled for commissioning through 2026. The company expects these additions to help sustain and potentially grow earnings, even if margins face some pressure.

Last week, Chief Business Officer Vinay Rustagi told CNBC-TV18 that the Indian solar sector continues to offer strong demand visibility. He indicated that this allows the company to remain relatively insulated from global trade disruptions.

Rustagi said the company evaluated export opportunities in Europe and the US but chose to prioritise domestic demand due to policy uncertainty in overseas markets. He reiterated that the company currently has no meaningful export exposure.

Geopolitical Tensions Add to Market Volatility​

His comments came a day before the United States and Israel launched strikes on Iran, killing its Supreme Leader Ali Khamenei. Iran responded with attacks on US naval bases in the Gulf region and launched strikes on multiple countries, including the UAE, Bahrain, and Israel.

The ongoing conflict, which the US and Israel said was aimed at preventing Iran from developing nuclear weapons, has disrupted global markets and trade flows.

Analyst Ratings Overview​

JPMorgan said that Premier Energies’ valuations appear attractive following the recent correction. The stock is currently covered by 17 analysts, of which 13 have assigned a buy rating, one has a hold rating, and three have issued sell recommendations.

With domestic policy support, expanding manufacturing capacity, and limited export exposure, Premier Energies remains closely tracked amid evolving global trade and geopolitical developments.