Beaten-down solar stocks turn attractive? Waaree Energies, Premier and Vikram Solar offer up to 33% upside, says Prabhudas - Solar Shine

Prabhudas Lilladher has initiated coverage on three solar stocks viz. Waaree Energies, Premiere Energies and Vikram Solar. All the three stocks have been market laggards with Waaree gaining 6% (Nifty 10%) in 2025 while Premiere plunging by 34% YTD. Meanwhile, Vikram Solar, the August 2025 listing, has seen its stock slip 25% below the issue price. Here is why PL sees up to 33% upside in them. ET Bureau 2/7 Sectoral tailwinds India’s solar sector is on an expansion spree. Domestic Installed solar capacity (AC) is expected to jump from 106GW in FY25 to 290GW by FY30E as part of the government’s 500 GW RE target. Growth will be driven by utility-scale additions, rooftop installations, solar pumps, and captive industrial demand. ETMarkets.com 3/7 Rising power consumption India’s per capita electricity consumption has risen steadily over the past decade, climbing from 819kWh in FY11 to 1,395kWh in FY24 (CEA data), reflecting a CAGR of 4.2%. TIL Creatives 4/7 Government push The Government of India has introduced a wide range of policy measures to strengthen domestic solar equipment manufacturing. Incentive programs such as PLI, DCR, ALMM, PM-KUSUM, safeguard duties and incentive schemes are aimed at building scale, reducing import reliance, and supporting exports. The company is a market leader with a 14.1% share in India’s module manufacturing (FY25) and a dominant 44% share in solar module exports (FY24). It is well placed to benefit from rapid capacity expansion, backward integration and expansion into high-growth green energy segments, supported by targeted acquisitions and strong policy tailwinds that offer a multi-year growth runway. The company is a leading integrated solar manufacturer with presence across cells, modules, inverters and transformers. Capacity has expanded to 5.1 GW of modules and 3.2 GW of cells, with plans to scale up to 11.1 GW and 10.2 GW respectively by FY28. Revenue, EBITDA and PAT are estimated to grow at a CAGR of 38.8%, 34.7% and 34.6% over FY25-28E. Agencies 7/7 Accumulate Vikram Solar at Rs 241 | Target: Rs 275 | Upside: 14% The company is an established solar module manufacturer with 4.5GW operational capacity and pan-India presence. It is scaling up to 17.5GW of modules and 12GW of cells by FY27, enabling deep backward integration. PL expects revenue, EBITDA and PAT to clock a strong CAGR of 60%-95% over FY25-28E, driven by capacity expansion and a robust 11.2GW order book (as of Sep’25). (Disclaimer: The recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times.)

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