Jefferies raises Emmvee Photovoltaic Power target price to Rs 440: Can the stock rally further?

Brokerage firm Jefferies has raised its price target on Emmvee Photovoltaic Power to Rs 440 from Rs 400, while retaining its Buy rating on the stock. The revised target indicates a potential upside of around 31% from the stock's current price of Rs 334.80. The brokerage remains positive on the company, citing its strong position in the solar PV value chain, healthy order book and expansion plans.

Why is Jefferies bullish on Emmvee?

Jefferies believes Emmvee's early adoption of TOPCon technology gives it an advantage as India's solar manufacturing industry expands. The company has 3GW of TOPCon cell capacity operational and is among the early adopters of the technology in India. The brokerage expects this positioning to support the company's profitability over the medium term.

The company is also expanding its manufacturing capacity. Jefferies expects Emmvee's cell and module capacity to increase significantly by FY27, while the company plans to move further upstream into ingot and wafer manufacturing. The brokerage believes its focus on the solar PV chain could help maintain manageable leverage while supporting growth.

Strong order book

Another key positive is Emmvee's order book, which has grown sharply to 9.9GW. Around 7GW of this is expected to be delivered by the end of FY28, giving the company strong visibility for revenue and earnings growth. Almost the entire order book is from the domestic market.

Jefferies has raised its FY27 and FY28 EBITDA estimates by 2% and 7%, respectively, and expects EBITDA to grow at a 33% CAGR between FY26 and FY29. The brokerage expects the company's profitability to remain strong as it expands its solar manufacturing operations.

Emmvee Photovoltaic Power share price

Emmvee Photovoltaic Power shares were trading at Rs 334.80 on August 20, up 5.63%. The stock opened at Rs 325.05 and touched an intraday high of Rs 338.00.

The stock has gained 76.11% so far this year and is trading below its 52-week high of Rs 371.55. Jefferies' revised target price of Rs 440 suggests further upside if the company's capacity expansion, order book execution and profitability continue to support earnings growth.

However, the brokerage has highlighted weaker-than-expected domestic solar demand and the possibility of all announced capacity additions materialising as key risks to its outlook.

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