Anand Rathi Recommends Subscribe for Long Term on Vikram Solar IPO Despite Aggressive Valuations

Anand Rathi has given a Subscribe for Long Term rating to the IPO of Vikram Solar Ltd, one of India’s largest solar module manufacturers. Incorporated in 2005 and headquartered in Kolkata, the company has 4.50 GW of installed manufacturing capacity and 2.85 GW enlisted capacity under MNRE’s approved list as of June 30, 2025. Vikram Solar’s product portfolio includes PERC, N-Type, and HJT solar modules. Apart from module manufacturing, it also provides engineering, procurement, and construction (EPC) services, as well as operations and maintenance solutions for solar plants. On the valuation side, the company is seeking a P/E of 85.8x based on FY25 annualized earnings, translating into a post-issue market capitalization of around ₹12,009 crore. While high capex requirements, thin margins, client concentration, and global supply chain risks make the issue appear aggressively priced, positives include a robust order book of 10.3 GW, strong backward integration, and government policy support for renewable energy. Given these factors, Anand Rathi believes the IPO holds strong potential for long-term investors and has advised subscribing with a long-term horizon. #VikramSolar #IPO #AnandRathi #RenewableEnergy #SolarPower #StockMarket