Motilal Oswal Financial Services has raised its target price for ACME Solar Holdings to ₹347 from the current market price of ₹249, representing a potential upside of 39 per cent. The brokerage maintained its ‘Buy’ rating on the renewable energy company.
The upgrade comes as ACME Solar’s operational capacity has more than doubled to 2.9 GW from 1.3 GW at the time of its initial public offering. The company commissioned 1.6GW of capacity over recent quarters, demonstrating strong project management capabilities and easing investor concerns about execution risks.
Motilal Oswal raised its FY28 EBITDA estimates by 7 per cent, citing preponed commissioning of the 300 MW Sikar Solar project to FY28 from FY29. The brokerage also reduced overall capital expenditure estimates due to declining battery and solar module prices, leading to lower net debt projections.
The company’s total project pipeline stands at 6.9GW, with an estimated annualized EBITDA of ₹81 billion post-commissioning. ACME Solar plans to commission 1.9GW capacity in FY27, which analysts view as a key catalyst for the stock.
With 70 per cent of gross debt on floating interest rates, the company stands to benefit from potential rate cuts. A 25 basis point reduction in average interest costs would add 4 per cent to FY26 projected profit after tax.
ACME Solar currently trades at 8.9 times FY28 EV/EBITDA, which Motilal Oswal considers reasonable given the company’s PPA-backed capacity expansion and proven execution record.
The shares are trading today at ₹248.70 down by ₹0.50 or 0.20 per cent on the NSE today at the closing bell.
Published on July 1, 2025