ACME Solar Shares Surge 8% After Investec Initiates Buy Rating Shares of ACME Solar Holdings rose sharply, jumping 8% to hit an intraday high of Rs 274 on the BSE following UK-based brokerage Investec’s initiation of coverage with a Buy rating and a target price of Rs 319. This implies an upside potential of approximately 25.5% from the previous closing price of Rs 254. The stock has gained around 37% over the past year. Investec highlighted the company’s transformation from a mid-sized solar developer into India’s leading Firm and Dispatchable Renewable Energy (FDRE) player. The brokerage emphasized four key growth drivers underpinning its bullish outlook. First, ACME Solar has a strong project pipeline, with 5.1 GW of capacity currently under construction. This is projected to scale to 6 GW by FY28 and further to 8 GW by FY30E, representing a compound annual growth rate (CAGR) of about 26% over the next five years. Most of these projects are awarded by central agencies such as the Solar Energy Corporation of India, NTPC Limited, NHPC Limited, and SJVN Limited, reducing counterparty risk. Second, the company enjoys robust project visibility, with power purchase agreements (PPAs) already secured for 3.5 GW of its under-construction portfolio. Management anticipates letters of award for the remaining 1.6 GW, with only 300 MW pending. Evacuation infrastructure is in place for the entire 4.5 GW under-construction capacity, and most land for projects up to FY27 has been acquired, mitigating delays and IRR risks. Third, FDRE projects dominate the portfolio, accounting for 79% or 4.0 GW of the under-construction pipeline. These assets operate at plant load factors exceeding 40% and deliver returns on equity of about 18%.#investec #acme_solar_holdings #solar_energy_corporation_of_india #ntpc_limited #nhpc_limited
