Shares of Acme Solar Holdings rose over 4% on Friday, trading at Rs 265.14 during the session, after brokerage firm Investec initiated coverage on the stock with a positive outlook.
The brokerage has assigned a ‘Buy’ rating with a price target of Rs 319, implying a potential upside of around 26% from current levels. The upgrade has boosted investor sentiment, driving buying interest in the stock during early trade.
Investec highlighted that Acme Solar is undergoing a structural transition from a mid-sized solar developer to a leading firm in the firm and dispatchable renewable energy (FDRE) segment. The company’s growing focus on solar-wind-storage hybrid solutions is expected to support round-the-clock clean power generation.
According to the brokerage, nearly 49% of the company’s capacity is already FDRE-based, with a strong pipeline of projects under development. Acme Solar currently has around 5 GW of projects under construction, with nearly 80% aligned to FDRE.
The brokerage expects the company’s EBITDA to grow at a 63% CAGR between FY25 and FY28, supported by capacity additions and operational efficiencies. Return on capital employed (ROCE) is projected at around 12–13%, indicating improving profitability.
Acme Solar is expected to add 450 MW in FY26, followed by 1.5 GW each in FY27 and FY28, which could drive EBITDA to approximately Rs 5,300 crore over the period.
Despite the strong growth outlook, Investec noted that the stock trades at around 8x FY28 estimated EV/EBITDA, making it one of the most attractively valued players in the sector.
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