The shares of this leading renewable energy company in India, with a portfolio of solar, wind, hybrid, and dispatchable renewable energy projects, are in focus after Motilal Oswal sees a further upside of approximately 40 percent from its current level.
With a market capitalisation of Rs 15,115 crores, the shares of ACME Solar Holdings Ltd are currently trading at Rs 250 per share, down by 14.38 percent from its 52-week high of Rs 292 per share. In the last six months, the stock has delivered a positive return of 4 percent.
Motilal Oswal has assigned a Buy call on Acme Solar with a target price of Rs 347 per share, signalling an upside of 39 percent from its Wednesday’s closing level of Rs 250.02 per share.
Motilal Oswal upgraded ACME Solar, pointing to its strong execution. The company more than doubled its operational capacity from 1.3 GW to 2.9 GW. The early commissioning of its 300 MW Sikar project from FY29 to FY28 led the brokerage to increase its FY28 EBITDA estimate by 7 percent.
Falling solar module and battery costs have also reduced capex needs, which lowers net debt projections. With 70 percent of its gross debt on floating rates, ACME could benefit from any future rate cuts. Motilal Oswal considers the stock’s current valuation of 8.9x of FY28 EV/EBITDA to be fair, backed by strong PPAs and a solid project pipeline.
Financial Highlights
The company reported a revenue of Rs 1,405 crores in FY25, up by 6.52 percent from its FY24 revenue of Rs 1,319 crores. However, the company reported a net profit decline of 64 percent to Rs 251 crore in FY25 from Rs 698 crores in FY24.
The stock delivered an ROE and ROCE of 7.50 percent and 8.40 percent, respectively, and is currently trading at a P/E of 56.22x as compared to its industry average of 38.23x.
ACME Solar Holdings Limited is a renewable energy company based in India that focuses on developing, constructing, owning, and operating large-scale solar power projects.
They also trade in wind energy and provide a range of services, including engineering, procurement, construction, and maintenance. The company primarily collaborates with government-backed organisations at both the central and state levels.
Written by Satyajeet Mukherjee
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