Renewable energy firm anticipates 40% growth boost: Uncovering the forces driving significant expansion
In a recent research report, brokerage house Motilal Oswal has expressed optimism about ACME Solar Holdings, predicting a potential 40% upside for the company's share price and maintaining a 'Buy' rating. The prediction is primarily based on ACME Solar's strong execution capabilities and improvements in Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA).
ACME Solar's impressive project management skills have been instrumental in boosting earnings and cash flow visibility, contributing to the company's robust standing. Over the past three months, ACME Solar Holdings' share price has outperformed NTPC Green by 24%, demonstrating the market's confidence in the company.
Motilal Oswal values ACME Solar Holdings at 10x FY28 EBITDA, indicating an attractive valuation relative to its growth prospects. The brokerage house believes that lower borrowing costs and new capacity additions are key catalysts for ACME Solar Holdings.
The total capacity of ACME Solar Holdings stands at 6.9 GW, with projects that are already operational, under construction, and in the pipeline, expected to be commissioned by the end of FY29. Notably, ACME Solar has commissioned 1.6GW since its IPO, while NTPC Green has commissioned 1.9 GW, lower than its guidance of 3 GW in FY25.
Eased investor concerns related to the execution of projects in ACME Solar Holdings' pipeline have been observed. Motilal Oswal has also revised the FY27 net debt estimates for ACME Solar Holdings downward to Rs 36,700 crore from over Rs 40,000 crore earlier.
The revised capex estimates and net debt estimates for ACME Solar Holdings are factors supporting Motilal Oswal's positive call on the share price. The brokerage house has also reduced the FY26 EPS for ACME Solar Holdings by 8.5% to adjust the commissioning timeline for the 350 MW Sikar Solar project and Pokhran wind project.
Motilal Oswal has set a target price of Rs 347 for ACME Solar Holdings, reflecting confidence in the stock's potential to appreciate significantly from current levels. This makes ACME Solar one of the compelling long-term investment ideas with substantial expected returns according to Motilal Oswal’s analysis.
[1] Motilal Oswal Research Report, June 30, 2025. [2] Motilal Oswal's Prediction of a 40% Upside for ACME Solar Holdings and their Buy Rating, June 30, 2025. [3] Motilal Oswal's Target Price of Rs 347 for ACME Solar Holdings, June 30, 2025. [4] Motilal Oswal's Analysis of ACME Solar Holdings as a Long-Term Investment Idea, June 30, 2025.
- Motilal Oswal's Analysis of ACME Solar Holdings as a Long-Term Investment Idea suggests that the company, with its strong execution capabilities and robust standing, could offer substantial expected returns, given a target price of Rs 347 for its shares.
- The finance industry is closely watching ACME Solar Holdings, as Motilal Oswal values the company at 10x FY28 EBITDA, indicating an attractive valuation relative to its growth prospects based on lower borrowing costs and new capacity additions.
- In the renewable-energy industry, ACME Solar Holdings stands out as it has seen its share price outperform NTPC Green by 24% over the past three months, demonstrating the market's confidence in the company's project management skills and financial standing.
- Defi portfolio managers interested in the energy sector could find ACME Solar Holdings an attractive investment, as Motilal Oswal's optimism about the company is primarily based on its strong execution capabilities and improvements in Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA).
