ACME Solar Holdings Shares Rise 8% Following Business Update, Potential for Further Growth Examined

ACME Solar Holdings Share Price Surges 8% in Morning Trade

On March 27, ACME Solar Holdings share price rose 8% in morning trade on the BSE, extending its winning run for the third consecutive session. The stock opened at ₹253.45 against its previous close of ₹253.85 and jumped to an intraday high of ₹274.35.

Key Performance Indicators

• Over the last three sessions, the stock has jumped more than 15%
• On a monthly scale, it has gained more than 16%, extending gains for the second consecutive month
• Year-to-date, the stock has gained 14% compared to a 13% fall in the equity benchmark Sensex

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Business Updates Driving Growth

The stock is witnessing strong buying interest following recent business updates shared by the company. Notably, ACME Surya Power Private Limited, a wholly-owned subsidiary of ACME Solar Holdings, has commissioned the second phase of a 35.714 MW/160.48 MWh battery energy storage system (BESS) project located at Bikaner, Rajasthan. Additionally, the company's subsidiary ACME Eco Clean Energy Private Limited has commissioned an additional 4 MW out of the 100 MW wind power project at Surendranagar, Gujarat.

Long-term Growth Prospects

Experts believe the stock is poised for a healthy upside in the long term due to the company's growth prospects. Investec has initiated coverage on the stock with a buy rating, pegging the target price at ₹319, valuing it at 9 times FY28E EV/EBITDA. The global financial firm highlighted that ACME Solar is evolving from a mid-sized solar developer into India's leading firm and dispatchable renewable energy (FDRE) player, powered by solar-wind-storage hybrid solutions that deliver round-the-clock clean power.

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Revenue and EBITDA Growth Projections

• Revenue growth: 62% CAGR to ₹59 billion by FY28
• EBITDA growth: 63% CAGR to ₹53 billion by FY28
• PAT growth: 69% CAGR to ₹12 billion by FY28
• EBITDA margins: 89.5% by FY28E versus 87.9% in FY25