The brokerage has initiated coverage on the company with a ‘Buy’ rating and a price target of ₹319, implying a potential upside of about 26% from current levels.
Investec said that Acme Solar is undergoing a structural transition, evolving from a mid-sized solar developer into a leading firm and dispatchable renewable energy (FDRE) player.
This shift is being driven by its focus on solar-wind-storage hybrid solutions that enable round-the-clock clean power.ALSO READ | 10 stocks that HSBC wants investors to bet on amidst current market volatility
The investment case rests on four key pillars: a strong FDRE portfolio, which already accounts for 49% of capacity; improving returns supported by timely project execution, with return on capital employed (ROCE) seen at 12-13%; robust earnings visibility, with EBITDA expected to grow at a 63% CAGR over FY25-28; and attractive valuations at around 8x FY28 estimated EV/EBITDA, the lowest among peers.
With about 5 GW of projects under construction and development, of which nearly 80% is FDRE, the company is well-positioned for growth.
It is expected to add 450 MW in FY26, followed by 1.5 GW each in FY27 and FY28, which could drive EBITDA to around ₹5,300 crore and support a steady improvement in returns.
All 10 analysts tracking the stock currently have a ‘Buy’ rating on it.
Shares of Acme Solar Holdings ended 1.8% higher at ₹253.85 on Wednesday and are up over 6% so far this year.
