+ 787.30
+ 255.15
 -69.00
+ 380.00
+ 1,569.00
+ 787.30
+ 255.15
+ 255.15
 -69.00
 -69.00
+ 380.00
Kotak Institutional Equities
Target: ₹250
CMP: ₹223.80
We initiate coverage on Emmvee Photovoltaic with an Add rating and a DCFbased Fair Value of ₹250 (13.0X March 2028E EPS).
Our FV implies Emmvee capacity to see 10/15 per cent CAGR for module and cell capacities, respectively, 20/30 per cent volume CAGR for Emmvee’s module and cell volumes until FY2035, driven by capacity addition and utilisation levels of about 60 per cent for modules and 80 per cent for cells, a contraction of EBITDA margins from 34 per cent in FY2025 to 14 per cent in FY2035, factoring in heightened competitive intensity, a cost of equity of 14.5 per cent and WACC of 11.6 per cent and terminal value of 1.5X FY2035 book value (in line with Chinese solar companies’ valuations).
Emmvee is currently setting up a 6 GW integrated cell and module manufacturing unit, which will take its total capacity to 16.3 GW and 8.9 GW module and cell, respectively, making it the fourth largest player in India.
Given the implementation of ALMM list II from June 1, 2026, this will enable Emmvee to benefit from superior profitability relative to peers in the medium term.
Key risks: Lack of diversification away from the solar PV module value chain, increasing margin risks, changes in the domestic policy environment, delay in getting cell capacity on stream, slower-than-expected growth in renewable capacity addition and faster-than-expected ramp-up of competitors’ cell capacities.
Published on April 6, 2026
Copyright© 2026, THG PUBLISHING PVT LTD. or its affiliated companies. All rights reserved.
BACK TO TOP
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.
Terms & conditions  |  Institutional Subscriber

source