Waaree or Premier Energies? Green Energy Stocks Soar 19% in Fortnight | Best Pick for Long-Term Investors

Green energy stocks Waaree Energies Limited and Premier Energies Limited have surged nearly 19% over the past two weeks, even as broader sentiment in the Indian stock market remained weak. The strong rally in these renewable energy stocks defies the prevailing bearish trend triggered by heightened geopolitical tensions following the onset of the Iran-US conflict in West Asia.

Separately, the recent changes in the Approved List of Models and Manufacturers (ALMM) Order for Wafers by the Ministry of New & Renewable Energy (MNRE) is likely to benefit the two green energy stocks in the long-term, as per Motilal Oswal.

Waareee Energies Vs Premier Energies: Share Price Trend

Waaree Energies share price was trading 0.2% lower at Rs 3,150 per share on BSE with a market capitalisation of Rs 90,606.89 crore at 1:40 pm on Friday, March 20. The stock has delivered 19.73% returns in two weeks.

Premier Energies share price was trading 1% lower at Rs 855.05 per share on BSE with a market capitalisation of Rs 38,733.28 crore at 3:08 pm. The stock value has surged by 19.51% in two weeks.

Waaree Energies vs Premier Energies: Mcap, Roe

Waaree Energies shares' market capitalisation stood at Rs 90,949.18 crore at 3:10 pm on Friday, March 20. Whereas, Premier Energies stock's market capitalisation stood at Rs 39,138.71 crore at 3:20 pm. Waaree Energies shares' return on equity stood at 70.49%, whereas Premier Energies stock's return on equity stood at 8.93%.

Waaree Energies Share Price Recommendation, Target Price

Motilal Oswal, in its report released this week, maintained a 'Buy' rating for Waaree Energies shares. "The valuation of WEL has been derived through a sum-of-the-parts (SoTP) methodology, resulting in a TP of INR3,514/share. The domestic module business is valued at 13x FY28E EBITDA."

Waaree Energies Share Price Target

"The US module business is valued at 12x FY28E EBITDA, which is in line with global peers. The new business segment, valued at 10x FY28E EBITDA, is consistent with domestic peer valuations. The sum of these segment valuations (adjusting for net debt) results in a TP of INR3,514/share," the brokerage added in its report.

Premier Energies Share Price Recommendation

Motilal Oswal has maintained a 'Buy' recommendation for Premier Energies share price.

"PEL's valuation has been derived using the SoTP methodology. The domestic module business is valued at 13x FY28E EBITDA, representing a ~25% premium to global peers."

Premier Energies Share Price Target

"The new business segment (~63% of its contribution from battery manufacturing) is valued at 10x FY28E EBITDA. The sum of these segment valuations (adjusting for net debt) results in a TP of INR1,000/share," the brokerage added in its report.