Motilal Oswal has reiterated its BUY rating on Premier Energies Limited (PEL) with a target price of ₹1,240, representing a 26% upside potential from current levels. According to the research report dated July 30, 2026, the brokerage maintains its positive outlook on the solar energy company despite recent regulatory developments.
The brokerage highlighted that the ALMM-II extension until December 2026 for open access/net metering segments will have limited impact on Premier Energies' operations. As reported by Motilal Oswal, utility-scale, PM Surya Ghar (rooftop), and PM-KUSUM segments representing 75-80% of domestic demand remain unimpacted by the regulatory deferment. This assessment provides clarity on the company's core business segments that continue to operate under existing frameworks.
The domestic module business is valued at 14x FY28E EBITDA, while the new business segment is valued at 10x FY28E EBITDA, consistent with domestic peer valuations. According to the research report, the sum of these segment valuations, adjusted for net debt, results in a target price of ₹1,240 per share. This valuation approach reflects the company's diversified business model across multiple solar energy segments.
