On the BSE, the energy shares fell 3.3% to Rs 2,301.1, while Premier Energy has risen to Rs 883.45 on Wednesday. Bernstein has set a target price of Rs 1,902 for Very Gies, which indicates a possible loss of more than 17% from the current levels and a target price of Rs 693 for premiere gies, which is a potential reduction of 21.6%.
This step has come, with the world’s third largest solar market, with the target of India’s annual investment, its domestic solar production industry. However, Burnstein analysts are cautious about the long -term prospects in the field.
While India’s Solar Photovoltaic (PV) presents opportunities for manufacturing sector growth, Bernstein flagged the risks of elevated raw material costs, tightening global module prices and more intense competition of Chinese solar players.
Bernsten noted that the cost of Indian -made solar products is two to three times higher than the global counterparts, making them less competitive. In addition, the industry faces fewer obstacles to access, and increasing the competition of larger global players is more pressure.
The broker also expressed concern over the execution challenges in India’s solar PV industry, which could put pressure on margins for domestic manufacturers.
Bernstein accepted the progress made by both companies in India’s renewable ENERGY area but warned that they could struggle to compete with industry giants like Reliance Industries and Adani Enterprise, which benefits from backward integration.
Brokerage has noted that Vari Gies is a place to move beyond its main module-cell business. However, it shows that both the Wary and the Premier Gies are lacking in the financial firepower needed to effectively take effective players in the field.
“When Vari shows the possibility of joining this league, and is looking for a way beyond the module-cell, we think that major competitors have many big leads for competition, against which there is no big right to win the Vari and Premier.”
Bernstein warned that the exceptionally high redemption returns would not be sustainable that these companies are currently enjoying. Brokerage said it expected that their returns decrease over 40% of the mid-kisore level. Bernstein noted that despite the lack of long -term data to support the durability of solar panels during such a period, the 30 -year operation warranty of their offered is the main risk.
Brokerage has noted that the financial operations of both companies are India and the US. Ga is tille tillay with import rules, fluctuations in global solar prices and competition, Bernstein views both stocks as further evaluations, looking at their dependence on regulatory support.
Bernstein said that if he had to make a choice between the two, the warted gies would be a choice of choice. While the cell capacity is currently high in the premiere gies, the brokerage sees as “more likely to integrate backward in the English-Wer fur” over time. In addition, Vari’s “Large International Order Book” provides better visibility on the spread of realization, lacking something premiere, Bernstein noted.
Share performance and technical indicators
Despite the rise of 6.8% in the past month, war energy has dropped 19.5% in the last three months. Technical indicators suggest that stock is trading above three of its six-key easy moving average but it is 58 days, 10-day SMA with 58-day-related strength index (RSI).
Premier gies have seen a steady improvement, which has dropped 33% in three months and 20% in six months. The stock is below all its key simple moving average, with an RSI of 45.9, which shows poor speed.
Also read | War Energy Shares to focus on starting production in India’s largest solar cell manufacturing gigafacter
(Disclaimer: The recommendations, suggestions, opinions and views given by experts are their own. This does not represent the views of the economic time)
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