Synopsis: Vikram Solar is in focus after Nuvama’s “Buy” recommendation, citing strong execution, scale, 75% EBITDA CAGR, and long-term growth potential in the expanding solar energy sector.
The shares of the company that manufactures and exports solar energy products, which are differentiated based on solar PV module technology and type, as well as cell size, and are sold across different range are now in the spotlight following Nuvama’s BUY target.
With a market capitalisation of Rs. 8,587 cr, the shares of Vikram Solar Ltd closed at Rs. 236.50 per share, increasing 4.5% in today’s session from its previous close of Rs. 226.35 per share.
Nuvama on Vikram Solar
Nuvama has highlighted Vikram Solar as a strong investment opportunity with a target price of Rs. 300 per share, which is an upside of 27% from the closing price. This recommendation is based on a combination of factors that point toward long-term growth and profitability.
The firm notes that Vikram Solar’s deep value is rooted in execution, suggesting that the company has consistently delivered on its operational goals and has strong project management capabilities. This makes it a reliable player in the renewable energy sector, particularly in solar power, where execution efficiency is critical.
Additionally, Vikram Solar benefits from scale and integration, which have fueled a robust 75% EBITDA CAGR (Compound Annual Growth Rate). This growth is supported by the company’s ability to maintain efficiency and profitability even amid muted competitive funding, indicating that it can expand without overly relying on external capital.
The brokerage emphasises the multi-decadal growth opportunity for solar energy, which is being accelerated by ongoing capital expenditure (capex) projects. This positions Vikram Solar to take advantage of the global and domestic shift toward renewable energy, giving investors a long-term growth horizon.
Finally, the valuation of Vikram Solar is considered attractive, with significant profitability potential. Nuvama’s “Buy” recommendation suggests that the stock is expected to perform well.
Vikram Solar Ltd is a major Indian solar energy company is one of the country’s largest manufacturers of solar photovoltaic (PV) modules and a full‑service provider of solar energy solutions, including engineering, procurement, and construction (EPC) and operations & maintenance (O&M) services for utility‑scale, commercial and industrial solar projects.
During the quarter, the company commenced operations at its 5 GW solar module plant in Vallam, taking total manufacturing capacity to 9.5 GW as of December 31, 2025. The Board also approved a Rs. 4,371 crore capex to enter the Battery Energy Storage Systems (BESS) segment under Phase-1, to be executed through VSL Powerhive.
Additionally, the company launched Hypersol Pro, an advanced N-Type solar PV module featuring integrated blocking diode technology, delivering zero reverse power loss, efficiency up to 23.69%, superior low-light performance, and enhanced durability, aimed at higher energy yield and faster returns across utility-scale, rooftop, and hybrid applications.
For Q3FY26, the company reported sales of Rs. 1,106 crore, up 8% year-on-year from Rs. 1,026 crore in Q3FY25. EBITDA surged 142% to Rs. 205 crore, compared to Rs. 84.7 crore a year earlier, while net profit jumped 417% to Rs. 98.2 crore from Rs. 19 crore. EPS increase of 352%, reaching Rs. 2.71 versus Rs. 0.60 last year, highlighting significant operational and profitability improvement.
It shows strong financials with ROCE 26.4%, ROE 16.6%, and a very low debt-to-equity of 0.09. Its PEG 0.29 and P/E 17.9 versus industry 26.7 indicate undervaluation. The company has delivered 46% profit CAGR over 5 years while reducing debt. As of Q3FY26, the order book stands at 10.6 GW, which is an increase of 28% from the previous year.
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