Three solar manufacturing stocks Waaree Energies, Premier Energies and Emmvee Photovoltaics, could rally as much as 50% as India’s renewable energy sector moves toward deeper manufacturing integration, according to domestic brokerage house Anand Rathi.
The report argues that companies building integrated manufacturing capacity across cells, wafers and modules are likely to dominate the next phase of industry growth.
While installed module capacity appears high on paper, the brokerage says demand for high-efficiency equipment will rise as solar deployment expands and new sectors such as data centres and green hydrogen add power demand.
Anand Rathi on Waaree Energies: ‘Buy’
Waaree Energies stands at the top of the list as the undisputed market leader with a massive module capacity of 22,800 MW, which includes 1,600 MW in the United States.
Anand Rathi has maintained a ‘Buy’ rating on the stock with a target price of Rs 3,849, representing a potential upside of approximately 44.9%.
The firm notes that Waaree is aggressively scaling up its operations with plans to reach 28,400 MW of modules and 15,400 MW of cell capacity by the 2027 fiscal year.
The brokerage firm points out that Waaree is moving toward becoming a fully integrated player by diversifying into battery energy storage systems, green hydrogen and inverter manufacturing with a total capital expenditure plan of Rs 25,000 crore.
Its unexecuted order book currently stands at Rs 60,000 crore, providing strong revenue visibility for the next few years.
Anand Rathi believes the company will be a major beneficiary of recent policy changes, including the implementation of the Approved List of Models and Manufacturers and the reversal of Chinese export rebates on solar products.
Anand Rathi on Premier Energies: ‘Buy’
Premier Energies is another top pick for which Anand Rathi has maintained a ‘Buy’ rating with a target price of Rs 928, indicating an upside of around 24%.
The firm is recognised as an early entrant in the solar manufacturing space and currently operates 5,400 MW of module capacity and 3,600 MW of cell capacity.
The company has a significant expansion plan involving Rs 12,500 crore in capital expenditure to scale up to 11,000 MW of modules and 10,600 MW of cells by the 2028 fiscal year.
The research highlights that Premier is successfully integrating upstream into ingot-wafer manufacturing and downstream into auxiliary components like inverters, transformers and aluminum frames.
Its order book remains strong at 9,400 MW, valued at Rs 13,700 crore, with a healthy mix of cells and modules.
The brokerage expects the company to deliver a 34% compound annual growth rate in revenue and earnings before interest, taxes, depreciation and amortization over the 2025 to 2028 fiscal period.
Anand Rathi said, “The company is integrating upstream into ingot–wafer manufacturing and downstream into inverters, transformers, BESS and aluminium frames, supported by a ~Rs125bn capex plan.”
Anand Rathi on Emmvee Photovoltaics: ‘Buy’
Anand Rathi has initiated coverage on Emmvee Photovoltaic Power with a ‘Buy’ rating and a target price of Rs 307, indicating an upside of 49.6%.
The firm is noted for its technological advantage, being one of the first in India to commission a 2,900 MW Tunnel Oxide Passivated Contact cell facility in September 2024.
The company plans to scale this capacity to 8,900 MW by the 2028 fiscal year while increasing its module capacity to 16,300 MW.
A key differentiator for Emmvee is its use of German manufacturing equipment from providers like Centrotherm and RENA Technologies, which supports higher operating efficiencies and structurally stronger margins compared to peers using Chinese machinery, according to the report.
The firm anticipates a 71% compound annual growth rate in revenue from the 2025 to 2028 fiscal period as the company ramps up its integrated cell facilities and enters the third-party cell sales market.
Anand Rathi added, “Emmvee’s technology edge, driven by advanced cell architectures, higher efficiency modules and improving yields provide a near-to-medium-term competitiveness that partly offsets structural integration gaps.”
Anand Rathi on Vikram Solar: ‘Hold’
The brokerage has also initiated coverage on Vikram Solar but with a ‘Hold’ rating and a target price of Rs 229, implying an upside of 21.4%.
While Vikram Solar is a large player with 9,500 MW of module capacity and plans to expand to 15,500 MW, Anand Rathi expresses caution due to its debt-led expansion strategy.
The company’s planned capital expenditure of Rs 10,800 crore through the 2029 fiscal year is expected to be funded 65% by debt, which could lead to high finance costs and pressure on profit margins.
Vikram Solar is working toward becoming an integrated player with a 12,000 MW cell facility planned for the second half of the 2027 fiscal year.
However, the brokerage believes that valuation convergence with industry leaders like Waaree may be limited in the near term because of execution risks and a weaker cash conversion cycle.
In addition, the report mentions that the company’s operating cash flow generation is relatively lower than its peers, which could exacerbate stress on its leveraged balance sheet.
Anand Rathi reasoned, “Higher leverage and weaker cash conversion could also weigh on return ratios, going forward.”
Anand Rathi: Renewable energy sector outlook
The Anand Rathi report suggests that the Indian renewable energy sector is going through a period similar to the historical telecom cycle, where a rush for capacity addition is followed by a phase of consolidation.
While on paper there appears to be a surplus of module manufacturing capacity, the actual nameplate requirement is estimated at 110,000 MW per year when accounting for captive demand and overloading in solar projects.
The firm notes that companies like Reliance New Energy and Adani Solar are also significant players in the capacity tables, with Reliance having commissioned 10,000 MW of module capacity and planning to reach 20,000 MW by the 2026 fiscal year.
The transition from plain solar projects to ‘Round The Clock and Firm and Dispatchable Renewable Energy’ is creating a mismatch in the grid, the report added.
Distribution companies are increasingly seeking assured power rather than just the lowest tariffs, which is driving the demand for battery energy storage systems, according to the report.
India is projected to require 47,200 MW of battery storage by 2032 to manage the intermittency of solar and wind energy.
The report emphasises that execution will be the primary moat for companies in this space and premiums will be selective rather than sector-wide.
Conclusion
Anand Rathi recommends focusing on solar manufacturers with deeper integration, strong order books and manageable leverage as India expands its renewable energy capacity.
While exports to the United States remain exposed to tariff and policy changes, emerging markets in Africa and Southeast Asia are expected to provide steady demand of 50,000–70,000 MW annually.
The brokerage believes the recent correction in solar stocks could offer an entry opportunity for companies that can scale integrated manufacturing and benefit from the sector’s next phase of infrastructure-driven growth.
Disclaimer: This article provides factual analysis only and is not, and should not be construed as, an offer, solicitation, or recommendation to buy or sell securities. Investors must conduct their own independent due diligence and seek advice from a SEBI-registered financial advisor.
