JM Financial initiated coverage on four solar photovoltaic companies on Friday, April 10, with mixed ratings and price targets. According to reports from CNBC TV18, the brokerage expects the sector to see significant capital expenditure over the next five years as companies build a competitive and integrated solar manufacturing ecosystem in India. This strategic investment is anticipated to act as a key entry barrier and differentiator among players in the evolving solar market.
Waaree Energies received a 'Reduce' rating with a price target of ₹2,815 per share, implying a 10% downside from current levels. As reported by CNBC TV18, the brokerage expects steady growth driven by capacity expansion and strong order visibility, with revenue, EBITDA, and profit after tax projected to grow at compound annual growth rates of 34%, 42%, and 40% respectively over financial years 2026 to 2028. However, JM Financial believes current valuations already factor in these positives, while aggressive diversification and capital deployment limit near-term upside potential.
Emmvee Photovoltaics was initiated with a 'Buy' rating and a price target of ₹291, indicating a potential upside of 31%. According to CNBC TV18, the positive stance is driven by its strong integration capabilities and scope for valuation re-rating as scale improves. The brokerage expects cell and module capacities to rise to 4.7 gigawatts and 7.9 gigawatts respectively by FY28, translating into revenue, EBITDA, and profit after tax growth at CAGRs of 83%, 77%, and 87% over FY25 to FY28. Vikram Solar received an 'Add' rating with a price target of ₹202, implying a modest upside of 5%.
Shares of all four companies were trading higher by up to 3.5% on Friday following the brokerage coverage, as reported by CNBC TV18. However, JM Financial flagged potential challenges ahead, noting that despite multiple announcements of integrated facilities, several projects may face delays or may not materialise due to capital and execution constraints. The brokerage also indicated that earnings for many manufacturers may have already peaked due to overcapacity and sectoral headwinds, with increasing pricing pressure potentially leading to industry consolidation over time.
