Shares of India’s second largest solar company fell, know full details

Shares of India’s Second Largest Solar Company Drop

Shares of Premier Energies Limited, India’s second-largest solar module and cell manufacturer, have experienced a decline of up to 10%. This drop occurred despite the company reporting impressive financial growth in Q2FY25, with revenue soaring 149% to ₹1,527 crore and net profit increasing 287% to ₹133 crore.

However, on a quarter-on-quarter basis, revenue fell by 8%, while net profit rose by only 4%. Currently, the share price stands at ₹1,040.05, with a market capitalization exceeding ₹46,559 crore. Shares recently traded at ₹1,052, reflecting a 7% decline from the previous close of ₹1,127.70.

Reasons Behind the Share Decline

The decline in Premier Energies’ shares is attributed to increased investor caution following Donald Trump’s victory in the US elections, raising concerns over potential policy changes in renewable energy exports. Additionally, profit-booking has contributed to the dip from a recent peak of ₹1,264.90.

Strong Customer Base and Order Book

Premier Energies boasts a robust customer portfolio, including major companies like NTPC and Tata Power Solar. The company’s order book as of November 2024 totals ₹6,233 crore, with significant contributions from DCR solar modules and solar cells.

Company Overview and Future Prospects

Premier Energies manufactures bifacial monocrystalline PERC cells and ranks as the second-largest solar cell manufacturer in India, with a 25% market share. The company plans to invest ₹3,400 crore to expand its capacity to 7 GW for solar cells and 8 GW for solar modules, partially financed by IPO proceeds.

Disclaimer: This information is intended for informational purposes only and does not constitute financial advice. Investors are encouraged to conduct thorough research before making any investment decisions.