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Ambit cuts Premier Energies and Emmvee Photovoltaic to Sell

Ambit links the downgrades to a faster-than-expected arrival of cell oversupply, warning of downside for Premier Energies and Emmvee Photovoltaic amid ALMM II extension risk.

Reported · Written up by our desk · Trade & Tariffs

Ambit Insights downgraded Premier Energies and Emmvee Photovoltaic Power to a Sell rating, pointing to a renewable energy sector demand-supply mismatch. In its report released Thursday, September 24, the brokerage said India’s module capacity has risen faster than annual demand, suggesting cell oversupply arrived earlier than expected.

Ambit said the new outlook could create downside risk for Premier Energies and Emmvee Photovoltaic, with specific mention that Emmvee is likely to be the “hardest hit” due to ALMM II extension. The brokerage set a target price of ₹ 825 for Premier Energies and ₹ 315 for Emmvee.

In the same note, Ambit kept a bullish stance on other solar and wind names, maintaining Buy ratings for Suzlon Energy and Saatvik Green Energy. It assigned a ₹ 59 target price for Suzlon, citing a DCF model and noting key risks such as slowing wind additions and a power demand slowdown, and set a ₹ 480 target for Saatvik Green.

At the time of the report, Suzlon Energy was trading 3.8% lower at ₹ 40.75 on BSE, while Saatvik Green Energy was down 1.6% at ₹ 440. Premier Energies was down 2.5% at ₹ 887, and Emmvee Photovoltaic Power was also flagged for potential downside under the revised outlook.

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