Shares of Emmvee Photovoltaic Power Ltd. gained as much as 5% on Thursday, August 20, following a positive rating update from brokerage firm Jefferies. According to reports from CNBC TV18, Jefferies retained its 'Buy' rating on the solar photovoltaic module and cell manufacturer and raised its price target to ₹440 per share from the previous ₹400. The stock has corrected around 15% recently and is currently trading at 6.8 times forward EV/EBITDA, representing a discount of around 30% to its peers. As per The Economic Times, the revised target indicates a potential upside of around 31% from the stock's current price of ₹334.80, with the brokerage citing the company's strong position in the solar PV value chain, healthy order book and expansion plans.
Jefferies has raised its FY27 and FY28 EBITDA estimates by 2% and 7% respectively, and now expects EBITDA to grow at a 33% CAGR between FY26 and FY29. As reported by CNBC TV18, the brokerage highlighted that Emmvee's early entry into TOPCon cells, strong order book, focus across the solar PV value chain and net-debt-free balance sheet position the company well to pursue backward integration into ingots and wafers and sustain industry-leading profitability over the medium term. According to The Economic Times, the brokerage expects the company's profitability to remain strong as it expands its solar manufacturing operations.
According to company data reported by CNBC TV18, Emmvee's order book stood at 9.9 GW, with fresh order inflows of 1.48 GW during the quarter - its highest quarterly order addition so far. The current order book provides revenue visibility of around ₹12,000-13,000 crore over the next 12-18 months. Speaking to CNBC-TV18 after the company's first-quarter results, Suhas Donthi, CEO and President of Emmvee Photovoltaic Power, had said the company remains on track to deliver EBITDA of ₹2,200-2,400 crore in FY27. As per The Economic Times, the brokerage remains positive on the company's order book execution and capacity expansion plans.
The company currently has around 3 gigawatts (GW) of operational TOPCon cell capacity and plans to increase cell and module capacity to 8.9 GW and 16.3 GW respectively by the end of FY27. According to the latest Jefferies report, the order book stands at 9.9 GW, nearly nine times higher than two years ago, with around 7 GW expected to be delivered by the end of FY28. Jefferies values the company at 10 times forward Enterprise Value to EBITDA and believes the recent correction has improved the risk-reward equation. The brokerage expects the company's profitability to remain strong as it expands its solar manufacturing operations and pursues backward integration into ingots and wafers.
