This renewable energy player’s valuation discount prompted Jefferies to raise its price target; stock jumps 5%

Jefferies said Emmvee’s early entry into TOPCon cells, strong order book, focus across the solar PV value chain and net-debt-free balance sheet position the company well to pursue backward integration into ingots and wafers and sustain industry-leading profitability over the medium term.

The brokerage has raised its FY27 and FY28 EBITDA estimates by 2% and 7%, respectively, and now expects EBITDA to grow at a 33% CAGR between FY26 and FY29.

Meanwhile, Emmvee remains confident of delivering EBITDA towards the upper end of its FY27 guidance, supported by healthy margins, a strong order pipeline and ongoing manufacturing capacity expansion.

Speaking to CNBC-TV18 after the company’s first-quarter results, Suhas Donthi, CEO and President of Emmvee Photovoltaic Power, had said the company remains on track to deliver EBITDA of ₹2,200-2,400 crore in FY27.

On the demand front, the company said its order book stood at 9.9 GW, with fresh order inflows of 1.48 GW during the quarter – its highest quarterly order addition so far.

The current order book provides revenue visibility of around ₹12,000-13,000 crore over the next 12-18 months, according to the company.The stock has corrected around 15% recently and is currently trading at 6.8 times forward EV/EBITDA, representing a discount of around 30% to its peers, according to Jefferies.