Acme Solar shares jump 6% as Investec joins list of ‘consensus buy’ ratings

Brokerage firm Investec believes Acme Solar Holdings remains undervalued compared to peers, leaving room for further upside in the stock.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 volatilityThe 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 are trading 3% higher today. The stock ended about 2% higher on Wednesday at ₹253.85. Its up over 6% so far this year.