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The shares of a Small-cap firm that specializes in the manufacturing of high-efficiency solar photovoltaic (PV) modules and solar cells, are in focus following the target coverage on it by Jefferies with an upside potential of 61 percent.
With a market capitalization of Rs. 18,322.91 crores in the day’s trade, the shares of Emmvee Photovoltaic Power Ltdrose by 0.95 percent, reaching a high of Rs. 269.90 per share compared to its previous closing price of Rs. 267.35 per share.
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Emmvee Photovoltaic Power shares are in the spotlight after global brokerage firm Jefferies maintained a ‘Buy’ rating on the stock with a target price of Rs. 430, implying an upside potential of nearly 61 percent from the previous closing price of Rs. 267.35.
Jefferies has a Buy recommendation on Emmvee Photovoltaic Power, with a target price, which is backed by the potential growth that India’s solar sector holds. The broker forecasts domestic solar module demand to be 70 GW by FY27, led by the growing use of renewables, cost-effective power, and government schemes.
The company is increasing its production capacities, with a goal to produce 8.9 GW worth of solar cells and 16.3 GW worth of modules. Moreover, reaching the goal of achieving ingot-wafer integration up to 9 GW during FY30 can contribute to backward integration and increase control over the supply chain.
Jefferies expects a 34 percent CAGR in EBITDA in FY29, given the expected gains from the growing demand for solar energy and increased manufacturing capacity at Jefferies. Increased production and efficiency will likely lead to better performance in the next few years.
Despite increasing competition in the solar manufacturing industry, the company is following a disciplined approach to order selection. This strategy is expected to help maintain pricing discipline and protect profitability rather than prioritising volumes at the expense of margins.
On balance, Jefferies continues to be bullish about Emmvee Photovoltaic Power owing to high domestic demand for solar products, capacity expansion, plans for backward integration, and good earnings growth prospects. These justify the stock’s Buy recommendation and target price of Rs 430.
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Revenue from Operations increased by 39.3 percent YoY, from Rs. 1,131 crore in Q2 FY26 to Rs. 1,576 crore in Q2 FY27. It also increased by 1.3 percent QoQ, from Rs. 1,556 crore in Q1 FY27 to Rs. 1,576 crore in Q2 FY27.
The company’s net profit rose 60.5 percent YoY, from Rs. 238 crore in Q2 FY26 to Rs. 382 crore in Q2 FY27. It also increased by 0.5 percent QoQ, from Rs. 380 crore in Q1 FY27 to Rs. 382 crore in Q2 FY27.
The company has delivered strong profit growth, with profits increasing at a CAGR of 158 percent over the last five years. It also has a strong return on capital employed (ROCE) of 44.6 percent and return on equity (ROE) of 50.7 percent.
The company has maintained a healthy three-year average ROE of 56.1 percent, indicating efficient use of shareholders’ funds. Its debt-to-equity ratio stands at 0.25, while the PEG ratio is 0.03.
It reported solar PV module production of 952 MW in Q2FY27, compared to 970 MW in Q1FY27 and 682 MW in Q2FY26. Solar cell production increased to 513 MW from 454 MW in Q1FY27 and 319 MW in Q2FY26. This reflects an improvement in solar cell production during the quarter.
As of Q2FY27, the company’s installed capacity stood at 10,308 MW for solar modules and 2,943 MW for solar cells. Effective capacity utilisation was 44 percent for solar modules and 89 percent for solar cells, indicating higher utilisation of its solar cell manufacturing capacity.
The company has set an annual capacity target of 16.3 GW for solar modules and 8.9 GW for solar cells in FY27. These expansion plans are aimed at strengthening its manufacturing capabilities and helping it meet the growing demand for solar energy products in the domestic and international markets.
The company’s total order book stood at 10.4 GW, providing strong visibility for future business execution. It also secured fresh orders of 1.5 GW during Q2FY27, reflecting continued demand for its solar modules and cells.
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Emmvee Photovoltaic Power is looking to benefit from rising demand for solar energy in India through capacity expansion and backward integration plans. These initiatives could help the company improve production, strengthen its supply chain and maintain healthy profit margins.
Jefferies remains positive on the company’s long-term growth prospects, supported by strong domestic demand and expected earnings growth. Its Buy recommendation reflects confidence in the company’s expansion plans and future business potential.
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