Emmvee Photovoltaic Shares Reach New High Following Jefferies' Favorable Q4 Earnings Recommendation
Emmvee Photovoltaic Power
IPOEmmvee Photovoltaic Shares Hit Fresh 52-Week High After Strong March Quarter Results
Shares of Emmvee Photovoltaic, a leading player in the renewable energy sector, surged 10 per cent on Wednesday to reach an intraday high of Rs 299.5 apiece on the National Stock Exchange (NSE). The stock has now extended gains for the third consecutive session, opening higher by 4.86 per cent.
The strong performance of Emmvee Photovoltaic can be attributed to better-than-expected results for the March quarter. Jefferies, a global brokerage firm, reiterated its 'buy' rating on the stock and set a target price of Rs 350. The firm noted that both earnings before interest, taxes, depreciation, and amortization (EBITDA) and profit after tax exceeded its estimates by 13 per cent and 17 per cent, respectively.
The brokerage firm also highlighted the company's stable order book, which continues to offer revenue and earnings visibility through FY27 and into the first half of FY28. While Jefferies flagged an increase in working capital, it noted that the balance sheet remains net-debt free as the company scales up capacity expansion.
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Key Highlights of Emmvee Photovoltaic's March Quarter Results
| Metric | FY26 (Estimate) | FY26 (Actual) | FY27 (Estimate) | FY27 (Revised Estimate) |
|---|---|---|---|---|
| EBITDA Margin | 33% | 33% | ||
| Module and Cell Manufacturing Capacity | 10.3 GW, 2.9 GW | 10.3 GW, 2.9 GW | ||
| Utilisation Levels | 44%, 79% | 44%, 79% | ||
| Blended EBITDA per Watt | Rs 5.78 | Rs 5.78 | Rs 5.87 | Rs 6.19 |
JM Financial also attributed the strong March quarter performance to higher production volumes, the first full year of solar cell operations, module capacity expansion, operating leverage, and lower finance costs following balance sheet deleveraging. The brokerage firm revised its EBITDA per watt estimates for FY27 and FY28 and maintained a 'buy' rating with a revised target price of Rs 341.
The recovery in power demand in FY27 is likely to support the renewable energy segment, Jefferies noted, adding that valuations remain at a discount of about 35 per cent to peers.
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Investor Takeaway
Investors should consider buying Emmvee Photovoltaic shares due to its favorable Q4 earnings and strong revenue and earnings visibility.
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