Vikram Solar Stock Soars: Prabhudas Lilladher Issues Buy Call with ₹326 Target

RENEWABLES
Whalesbook Logo
AuthorAarav Shah|Published at:
Vikram Solar Stock Soars: Prabhudas Lilladher Issues Buy Call with ₹326 Target
Overview

Prabhudas Lilladher initiated coverage on Vikram Solar with a 'BUY' rating and a price target of ₹326. The brokerage highlights strong module sales growth of 35% in Q3FY26 and 97% in 9MFY26. The company has commissioned a 5GW plant, boosting total capacity to 9.5GW and plans further expansion towards 15.5GW modules and 12GW cells by FY27-FY27. The outlook anticipates significant revenue and EBITDA CAGR.

Capacity Expansion and Strategic Integration

The recent commissioning of Vikram Solar's 5GW module manufacturing plant in Vallam marks a significant milestone, elevating its total operational capacity to 9.5GW. This expansion is a key component of the company's strategic shift towards backward integration into cell manufacturing, with a target of 12GW cell capacity by Q4FY27. Vikram Solar also plans to grow its module capacity to 15.5GW by Q1FY27, revising its initial target slightly to accommodate this new focus.

Strategic Sourcing and Investment

Cells are currently imported from China to leverage cost advantages. However, the company is evaluating Southeast Asia as an interim sourcing option for approximately one year before fully transitioning to in-house cell production. Complementing its manufacturing push, Vikram Solar has secured board approval for ₹44 billion in capital expenditure dedicated to Battery Energy Storage Systems (BESS). Initial phases target 5GWh of BESS capacity by FY27, escalating to 7.5GWh by September 2028, indicating a move into integrated energy solutions.

Financial Outlook and Valuation

Prabhudas Lilladher projects robust financial performance, estimating a Compound Annual Growth Rate (CAGR) of 69.9% for revenue, 66.9% for EBITDA, and 19.0% for PAT between FY26 and FY28E. The brokerage maintains its 'BUY' recommendation, reiterating a price target of ₹326. This target values the company at 5.5 times its estimated Enterprise Value (EV) for March 2028 earnings before interest, taxes, depreciation, and amortization (EBITDA).

Disclaimer:This content is for educational and informational purposes only and does not constitute investment, financial, or trading advice, nor a recommendation to buy or sell any securities. Readers should consult a SEBI-registered advisor before making investment decisions, as markets involve risk and past performance does not guarantee future results. The publisher and authors accept no liability for any losses. Some content may be AI-generated and may contain errors; accuracy and completeness are not guaranteed. Views expressed do not reflect the publication’s editorial stance.