Up 90% in 8 months! This solar energy stock continues to attract interest; check targets

Shares of ACME Solar Holding have been rallying lately, thanks to a slew of updates and positive brokerage reports. The stock surged another 3 per cent on Friday to hit new highs. The stock has seen strong brokerage actions lately, with a number of analysts initiating coverage on it with a more upside left.

Shares of ACME Solar Holdings gained more than 2.75 per cent on Friday to hit 52-week high at Rs 321.70, with a total market capitalization of the company close to Rs 20,000 crore. The stock has surged more than 92 per cent from its 52-week low at Rs 167.55 hit in January 2025.

ACME Solar Holdings has set a long-term goal of reaching 10GW contracted capacity by 2030, implying a 3.4x growth, and is also uniquely positioned to gain from GST reforms – structurally positive; QIP to aid projects equity funding; RPO supporting the overall portfolio, and diversification into BESS return ratio accretive, said Dolat Capital.

"ACME Solar is among India’s top leading renewable energy & independent power producers (IPPs), with 2.9GW of operational capacity and a strong commissioning pipeline that is expected to scale capacity to 7GW by FY29E. We expect a Revenue/EBITDA/ PAT CAGR of 66 per cent/68 per cent/78 per cent over FY25-28E. We initiate coverage on ACME Solar with a ‘BUY’ rating and target price of Rs 380." it added.

ACME Solar is a renewable energy company operating across 11 Indian states with a focus on solar, wind, and battery storage. It was incorporated in 2015 to consolidate ACME Group’s renewable energy IPP business and currently has over 2,890 MW of operational capacity.

India’s battery energy storage (BESS) capacity is expected to expand over 200 times to 41 GW / 236 GWh by FY31-32, alongside renewable capacity, led by FDRE, targeting 485 GW by 2030. ACME Solar is targeting 7 GW capacity by 2027, with nearly half from FDRE projects and a planned 10 GWh BESS rollout by CY26, said Mastertrust Broking and investments in a recent note.

"We assume ACME successfully commissions 7 GW by FY27, with 50 per cent of capacity in FDRE and 10 GWh BESS operational by CY26. This expansion is projected to drive over 4 times revenue growth to Rs 5,900 crore and 3.5 times PAT growth to Rs 950 crore by FY28. We assign a valuation of 10 times FY28E EV/EBITDA, arriving at a fair value of Rs 372 per share," it added.

Shares of ACME Solar Holdings were listed at the bourses in November 2024, when the company raised a total of Rs 2,900 crore via IPO, selling its shares for Rs 289 apiece with a lot size of 51 equity shares. The stock is currently trading 11 per cent above its IPO price.

Earlier this week, its wholly owned subsidiary, ACME Venus Urja, secured long-term financing of Rs 3,892 crore from the State Bank of India (SBI) for the development and construction of a 400 MW Firm and Dispatchable Renewable Energy (FDRE) project in Barmer, Rajasthan, with the repayment is spread across 19 years.