Motilal Oswal reiterates its BUY rating on Premier Energies Limited (PEL) with a target price of INR1,240 per share, reflecting a 26% upside from current levels.
The rating is based on the limited impact of the ALMM‑II extension. Although the company has announced a deferment of ALMM‑II until December 2026 for open access and net metering in commercial and industrial segments, the key utility‑scale, PM Surya Ghar (rooftop), and PM‑KUSUM projects—accounting for roughly 75‑80% of domestic demand—are not affected.
Valuation details: The domestic module business is priced at 14 times FY28E EBITDA, while the new business segment is valued at 10 times FY28E EBITDA, aligning with industry peers. After adjusting for net debt, these multiples support the ₹1,240 target price per share.
The report underscores Premier Energies’ strong position in the renewable energy sector and the firm’s confidence in the company’s growth trajectory.