Bernstein Puts Tata Power Ahead in Solar Stock Rankings
According to a Bernstein report, Tata Power stands out as the top pick among solar stocks due to its earnings-led valuation. The company's projected earnings per share (EPS) for FY27 and FY28 are estimated at Rs 14.91 and Rs 17.26 respectively, with corresponding price-to-earnings ratios of 24.3 times and 21 times.
Bernstein has set a target price of Rs 430 for Tata Power, implying an 18.8% upside from its reference price. In contrast, Waaree Energies and Premier Energies are assessed based on their manufacturing capacity, with Waaree being valued at about 0.5 times enterprise value per GW of FY27 exit-cell capacity.
The report highlights the challenges faced by Waaree in executing its manufacturing plans due to equipment imports and visa-related issues. Meanwhile, Premier Energies carries lower valuation figures across the three measures provided in Bernstein's comparison.