1 week ago
SMIFS Sees Upside in India’s Leading Solar Stocks
A research firm called SMIFS studied several Indian solar companies.
It believes solar power will add a large amount of India’s future electricity capacity.
This should increase demand for solar cells and panels.
The firm is especially positive about companies that make more parts themselves, including wafers, cells and modules.
It gave buy ratings to Waaree Energies, Premier Energies, Emmvee Photovoltaic Power and Vikram Solar.
It also gave each company a price target that suggests the shares could rise by 26-36%.
However, many companies are rapidly adding manufacturing capacity.
That could create too many panels and reduce profits, especially for smaller companies that only assemble modules.
SMIFS assigned buy ratings to Waaree Energies, Premier Energies, Emmvee Photovoltaic Power and Vikram Solar.
The report set target prices of Rs 3,590, Rs 1,344, Rs 418 and Rs 220, respectively.
These targets imply estimated upside of 26-36% based on current valuations and FY26E-28E growth prospects.
Policy-led localisation, domestic-content requirements and ALMM rules are expected to support Indian solar manufacturers.
SMIFS warned that rapid capacity expansion could increase competition, create module oversupply and pressure margins.
- Who
- SMIFS and the Indian solar manufacturers Waaree Energies, Premier Energies, Emmvee Photovoltaic Power and Vikram Solar.
- What
- SMIFS issued buy ratings and target prices for four Indian solar stocks, forecasting 26-36% upside potential.
- Where
- India.
- When
- The outlook covers FY26E-28E and is based on current valuations; no publication date is stated.
- Why
- Solar demand, policy-led localisation, domestic-content requirements, capacity expansion and increased backward integration are expected to support the sector, although rising competition could pressure margins.
Sector opportunity
Sector risks
Solar demand
Sector opportunity
Solar is expected to contribute the largest share of incremental power capacity, supporting medium- to long-term demand for cells and modules.
Sector risks
Rapid manufacturing additions could create module oversupply and pressure selling prices.
Industry structure
Sector opportunity
Integrated companies with scale, backward integration, TOPCon technology, strong balance sheets, domestic-content exposure and export capability are likely to gain market share.
Sector risks
Smaller module-only manufacturers may face margin pressure and consolidation as competition intensifies.
Local manufacturing
Sector opportunity
Moving from imported wafers toward an integrated ingot-to-wafer-to-cell-to-module ecosystem could improve supply-chain resilience and operating leverage.
Sector risks
Building capacity across the value chain requires rapid expansion and may intensify competition, particularly in module assembly.
Key facts
- Research firm
- SMIFS
- Waaree Energies target
- Rs 3,590
- Premier Energies target
- Rs 1,344
- Emmvee Photovoltaic Power target
- Rs 418
- Vikram Solar target
- Rs 220
- Estimated upside
- 26-36%
- Key supply-chain gap
- India imports more than 99% of its wafer requirements
Sources
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