Solar energy stock ACME Solar Holdings has emerged as a promising player in India’s renewable energy landscape, and Elara Capital believes the company is well-positioned to benefit from the country’s aggressive push toward clean energy. In its latest report, the brokerage initiated coverage on ACME Solar with a ‘Buy’ rating and a target price of ₹325, implying a potential upside of 27.5 percent from current levels.
Elara Capital said India’s renewable energy sector is entering a transformative phase, with the government aiming to ramp up installed renewable capacity to 500GW by FY30 from the existing 220GW. Solar energy is expected to lead this transition, with India already having added 103GW of solar capacity between FY15 and FY25. Against this backdrop, ACME Solar is poised to benefit significantly, given its current operational base and robust pipeline of projects under development.
Portfolio Expansion to Drive Multi-Year Growth
According to Elara Capital, ACME Solar currently operates 2.8GW of solar capacity and is in the process of adding another 4.1GW, which includes projects across solar, hybrid, and firm and dispatchable renewable energy (FDRE) categories. Notably, the company is developing 2.6GW of FDRE projects and 750MW of hybrid projects, marking a strategic diversification that will help improve both returns and grid reliability.
Elara Capital emphasised that the company’s generation portfolio is expected to nearly triple to 7.0GW by FY28, providing a strong foundation for long-term earnings growth. “The aggressive capacity expansion strategy will be a key growth driver, as the company consolidates its position in India’s clean energy ecosystem,” the brokerage noted.
Robust Earnings Visibility Backed by Execution Strength
On the financial front, Elara Capital projects that ACME Solar will witness a steep growth trajectory between FY25 and FY28. The brokerage expects the company’s revenue to reach ₹63 billion by FY28, representing a compound annual growth rate (CAGR) of 49 percent. EBITDA is projected to grow at an even faster pace, with a CAGR of 66 percent during the same period.
This strong growth outlook is underpinned by the company’s proven execution capabilities and a solid pipeline of high-yield projects. “ACME Solar’s focused shift into firm and hybrid renewable solutions makes it a critical player in addressing India’s demand for reliable clean energy,” Elara Capital said.
Attractive Valuations Offer Compelling Investment Opportunity
In terms of valuation, Elara Capital highlighted that ACME Solar is currently trading at 8.3x FY28E EV/EBITDA and 13.2x FY28E P/E—levels the brokerage considers attractive given the company’s growth potential. Assigning a target multiple of 9.0x FY28E EV/EBITDA, Elara arrived at a target price of ₹325, suggesting an upside of about 30 percent from current levels.
The brokerage reiterated that ACME Solar’s combination of operational scale, future-ready technology diversification, and strong execution track record make it one of the top picks in the renewable energy space. “We believe ACMESOLA is well-placed to capture the next wave of growth in India’s green energy sector,” Elara Capital added.
Stock Price Trend
The stock is currently trading 12 percent below its IPO price of ₹289, reflecting some pressure since its listing. From its previous close of ₹254.75, it remains around 13 percent below its 52-week high of ₹292.00, which was recorded in December 2024. On the downside, it had hit a 52-week low of ₹167.55 in January 2025.
In July so far, the stock has managed to recover modestly, gaining 2.2 percent, following a 5.4 percent decline in June. Prior to that, it staged a strong rally with a 26 percent jump in May and a 9 percent rise in April. However, the first quarter of 2025 was weaker, with the stock falling 0.6 percent in March, 10 percent in February, and 9 percent in January. This mixed performance highlights ongoing volatility but also shows signs of a rebound in recent months.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.