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Renewable energy stocks to buy: India’s module capacity has increased significantly higher than the annual demand. The demand-suppy mismatch indicates that cell oversupply has arrived earlier than expected, according to a recent Ambit Insights report.
Given the current scenario, Premier Energies and Emvee Photovoltaic Power may see potential downside, highlighted Ambit Insights in its report released on Thursday, September 24. Meanwhile, the brokerage continues to remain bullish on Saatvik Green and Suzlon Energy.
Ambit Insights gave a ‘Buy’ rating for Suzlon Energy share price with a target price of ₹59 per share. “We model Suzlon using DCF. Our TP of ₹59 implies 31x FY28 EPS,” stated the brokerage in its report. It also highlighted key risks like slowing growth in wind addition and power demand slowdown as key risks.
Suzlon Energy stock was trading 3.78% lower at ₹40.75 per share on BSE with a market capitalisation of ₹56,013.27 crore at 2:37 pm on Thursday. The green energy stock has declined 9.7% in one year, and 13% in two years.
The brokerage remained bullish on the Saatvik Green Energy stock with a target price of ₹480 per share. “Our DCF-based target price of ₹480 values Saatvik at 6.8x FY28 EV/ EBITDA and 9x FY28 P/E.” Lower than expected EBITDA margins and low power demand are key risks on its growth outlook.
Saatvik Green Energy share price was trading 1.59% lower at ₹440 per share on BSE with a market capitalisation of ₹5,592.62 crore at 2:40 pm on Thursday. The stock value has surged close to 19.35% in six months.
Premier Energies may see some downside risks in the coming duration. Ambit Insights changed its rating for the stock to ‘Sell’ with a target price of ₹825 per share.
“We had valued Premier Energies using DCF, taking into consideration free cash flow to the firm until FY35 using a WACC of 12% and a terminal growth rate of 9.6% to arrive at a TP of ₹825,” stated the brokerage in its report.
Premier Energies share price was down 2.52% at ₹887 per share on BSE with an MCap of ₹40,283.66 crore at 2:45 pm on Thursday.
Ambit Insights reduced rating to ‘Sell’ on Emmvee Photovoltaic with a target price of ₹315 per share. According to the brokerage, Emmvee Photovoltaic Power is likely to be the “hardest hit with ALMM II extension.”
“Our DCF-based target price of ₹315 values Emmvee at 9x FY28 EBITDA and 14x P/E,” stated the brokerage in its report. Emmvee Photovoltaic Power share price was trading 4.20% lower at ₹318.55 per share on BSE with an MCap of ₹22,037.34 crore at 2:50 pm.
Disclaimer: This story is for educational and informational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified financial experts before making any investment decisions.
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