Recommendation from Miscellaneous Sector

This column gives you scrip chosen by the research team during the fortnight that is fundamentally strong and expected to give good capital appreciation over a time period of 1 year. [EasyDNNnews:PaidContentStart]

EMMVEE PHOTOVOLTAIC POWER LTD : INTEGRATED Solar PLAYER POWERING GROWTH

HERE IS WHY
✓  Integrated Manufacturing Platform
✓  Strong Order Book Visibility
✓  Backward Integration Expansion

I ndia's solar panel market is expected to grow from USD 9 billion in 2025 to USD 46.9 billion by 2034, registering a CAGR of 19.5 per cent. Additionally, the implementation of the Approved List of Models and Manufacturers (ALMM) List II, which mandates the use of domestically manufactured solar cells in covered projects, is expected to accelerate demand for integrated Indian manufacturers. With its integrated manufacturing platform and ongoing capacity expansion, Emmvee Photovoltaic Power Ltd. is well positioned to capitalise on these structural tailwinds. Considering these factors, we recommend it as our Choice Scrip. The company is one of India's leading integrated solar PV manufacturers and currently operates 10.3 GW of solar module capacity and 2.94 GW of TOPCon solar cell capacity, making it one of the country's largest integrated solar manufacturers. Its manufacturing footprint comprises multiple facilities located within a 100-kilometre radius, enabling better operational efficiency, Logistics optimisation, and supply-chain integration.

In Q1FY27 revenue from operations increased 51 per cent YoY to ₹1,555 crore, while EBITDA grew 56 per cent to ₹548 crore. PAT surged an impressive 103 per cent YoY to ₹380 crore. Module production increased 53 per cent YoY to a record 970 MW, while cell production rose 26 per cent to 454 MW. Emmvee ended Q1FY27 with an order book of 9.9 GW, supported by fresh order inflows of 1.48 GW during the quarter. The current order pipeline spans utility-scale, commercial and industrial, and rooftop solar projects, while the implementation of ALMM List II is expected to further accelerate demand for domestically manufactured solar cells throughout FY27 and beyond.

The company's next phase of growth will be driven by significant capacity expansion. Emmvee is currently executing a 6 GW integrated TOPCon cell and module facility, which is expected to increase total installed capacity to approximately 16.3 GW of modules and 8.9 GW of cells by FY28.

The module line is scheduled for commissioning by December 2026, followed by the cell line in March 2027. The project involves an estimated investment of around ₹5,500 crore, with nearly ₹3,300 crore of debt already tied up at a cost below 8 per cent. Importantly, all major equipment has already been ordered, substantially reducing execution risk.

Beyond this expansion, Emmvee is preparing for the next phase of backward integration through a proposed 9 GW ingot and wafer manufacturing facility, to be implemented in phases. This initiative is aimed at reducing upstream supply-chain dependence, protecting margins, and increasing the share of value addition within the company. Management indicated that this expansion will be funded largely through internal accruals, reflecting the company's strong financial position and disciplined capital allocation strategy.

On the financial front, Emmvee continues to maintain one of the strongest balance sheets among listed solar manufacturers. The company reported an exceptional ROCE of 44.8 per cent and ROE of 51.1 per cent, while maintaining a low debt-to-equity ratio of just 0.10 despite undertaking significant capacity expansion.

From a valuation perspective, the stock trades at a P/E of 17.6x, which is significantly below the industry average of 31.0x, despite delivering superior earnings growth and industry-leading return ratios. Considering its integrated manufacturing platform, strong order book, ongoing capacity expansion, backward integration strategy, and robust financial performance, we recommend a BUY.

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