Emmvee Photovoltaic Power shares surged in early trade as Jefferies initiated coverage with a buy rating, positioning the company at the center of India's accelerating solar build-out phase. The brokerage set an ambitious price target of ₹320, suggesting significant upside potential of 73% from current levels.

Market Performance and Valuation

The stock demonstrated strong momentum, rising as much as 9.62% to ₹202.70 during the session before paring gains to trade 5.46% higher at ₹195.01 as of 9:35 AM. Jefferies notes that the stock currently trades at approximately 50% discount to industry peers, presenting an attractive valuation opportunity.

India's Solar Growth Trajectory

Jefferies projects robust growth in India's solar sector, forecasting installations to expand at a 24% CAGR over FY25-28. The brokerage expects annual solar PV installations to reach 65GWdc in FY28, up from 34GWdc in FY25. This growth is driven by multiple factors including falling tariffs, increased energy storage adoption, and strong policy support.

The shift toward solar plus battery energy storage systems represents a major catalyst, with solar tariffs remaining cheaper than new thermal tariffs for the past four years. Solar energy is expected to dominate India's renewable expansion in the coming years.

Policy Support and Market Protection

Strong policy tailwinds are supporting domestic manufacturers through ALMM rules and Domestic Content Requirement norms, which have effectively ring-fenced the domestic market for Indian companies. These policies have created a shortage of domestic cell capacity, resulting in higher module prices and improved profitability across the sector.

Technological Leadership and Competitive Advantages

Emmvee stands out as a technological early mover, being only the second company in India to adopt high-efficiency TOPCon cells. The company has 3GW operational capacity since September 2024 and has partnered with Fraunhofer, Germany, for PV cell process equipment selection and optimization.

The company's German-sourced cell line offers lower operating costs compared to Chinese equipment, providing a sustainable competitive advantage. Jefferies highlights several key strengths:

• Early entry into TOPCon technology
• Superior DCR-driven profitability
• Adequately funded balance sheet
• Elevated margins in the DCR market
• Strong cash flows to fund expansion and backward integration

Risk Factors

Jefferies cautions about potential risks including weak domestic solar demand and the possibility that all announced industry capacities materialize, which could worsen oversupply conditions. These factors could impact the overall sector dynamics and individual company performance.

The stock has declined 10.80% since its listing in November 2024, but the current analyst coverage suggests strong recovery potential based on the company's technological positioning and India's favorable solar market outlook.

Emmvee Photovoltaic Power has officially announced the commencement of operations at its new solar module manufacturing facility, marking a significant milestone in the company's expansion strategy. The new Unit VI facility in Bengaluru has begun production with a substantial capacity of 2.5 GW, positioning the company for enhanced market presence in India's rapidly growing solar energy sector.

Manufacturing Capacity Expansion

The launch of the new production facility represents a major step forward for Emmvee Photovoltaic Power's manufacturing capabilities. The following table highlights the key details of this expansion:

Strategic Impact on Operations

With the commencement of operations at Unit VI, Emmvee Photovoltaic Power Limited has significantly enhanced its production capabilities. The addition of 2.5 GW capacity brings the company's aggregate manufacturing capacity to 10.3 GW, representing a substantial increase in its ability to serve the growing demand for solar modules in the Indian market.

Market Positioning

The new facility strengthens Emmvee Photovoltaic Power's position as a significant player in India's solar manufacturing landscape. The Bengaluru location provides strategic advantages for distribution and logistics, enabling the company to better serve customers across different regions. This expansion aligns with India's renewable energy goals and the increasing adoption of solar power solutions across various sectors.

The successful launch of Unit VI demonstrates Emmvee Photovoltaic Power's commitment to scaling its operations and meeting the evolving needs of the solar energy market. With enhanced manufacturing capacity, the company is well-positioned to capitalize on the growing opportunities in India's renewable energy sector.