According to reports from The Hindu BusinessLine, a broker has initiated coverage on Emmvee Photovoltaic Power Ltd with a 'Buy' rating and a target price of ₹395. The broker values the company at 7.5x its 4-quarter ending Sep-28 EEBITDA, representing a significant premium to current market valuations. This premium valuation reflects the company's strong growth expectations and further benefits from backward integration plans.
As reported by The Hindu BusinessLine, Emmvee is currently trading at ₹297.05, which represents a 25% upside to the broker's target price. The company is among India's leading integrated solar PV module and cell manufacturers with 10.30 GW of module capacity and 2.94 GW of cell capacity, with further capex and backward integration plans underway. This strong market position and growth trajectory support the broker's positive outlook on the stock.
According to the broker's analysis, Emmvee is among the pioneers of the high-efficiency TOPCon technology in India, thus catering to the market's deficit in TOPCon capacity. The company is enlisted in ALMM List I and List II, enabling it to supply to projects with DCR mandate. Being among the larger players in a fragmented market and an early mover in technology adoption and backward integration has helped the company benefit from industry tailwinds. This strategic positioning is reflected in its strong order book and better margins, positioning it well for continued growth.
As reported by The Hindu BusinessLine, Emmvee is currently trading at 6.2x 1-year forward EV/EBITDA and 5.7x FY28E EBITDA, which represents approximately 6% discount to the industry average of 6x. The broker notes that this discount is significant at 28% and 41% respectively to Waaree and Premier's corresponding multiples. The company's strong order book and better margins are expected to continue benefiting from India's focus on achieving renewable energy targets, supporting the broker's premium valuation approach.
