Why Is ACME Solar Considered A Strong Buy In Renewable Energy Space?
ACME Solar Holdings is one of India’s leading renewable energy Independent Power Producers (IPPs), with an operational portfolio of 2.9 GW and a strong commissioning pipeline. The company is strategically positioned to scale its capacity to about 7 GW by FY29 and further to 10 GW by 2030. With increasing emphasis on clean energy and favorable policy reforms, ACME Solar has become a front-runner in India’s renewable energy sector. Brokerage firm Dolat Capital has initiated coverage with a ‘Buy’ rating and a target price of ₹380, implying strong upside potential from current levels.
What Is Driving ACME Solar’s Growth Story?
ACME Solar’s growth is underpinned by its ability to scale operations rapidly, supported by long-term government reforms such as Renewable Purchase Obligations (RPOs) and GST rationalization. Its goal of reaching 10 GW contracted capacity by 2030 represents nearly 3.4x growth from current levels. This long-term visibility makes the stock attractive for investors seeking exposure to India’s green energy transition.
How Strong Are The Financial Projections?
Dolat Capital estimates a supernormal EBITDA CAGR of 68% and PAT CAGR of 78% for ACME Solar between FY25–FY28. This growth is expected to be driven by incremental commissioning of 3.5 GW capacity, primarily consisting of FDRE/Hybrid projects. These account for nearly 82% of new capacity, enhancing tariffs and overall CUF (Capacity Utilization Factor) to around ₹3.7/kWh. Such strong financial visibility provides confidence in the company’s long-term performance.
What Strategic Advantages Does ACME Hold?
ACME Solar enjoys first-mover advantage in multiple renewable energy clusters, giving it operational expertise and scale benefits. Its ability to raise funds through Qualified Institutional Placements (QIPs) and strong equity support has ensured liquidity for aggressive expansion. Diversification into battery storage and hybrid projects further strengthens its long-term competitive edge.
What Are The Key Risks To Watch?
While the outlook is strong, investors must consider certain risks. Delay in commissioning projects, volatility in commodity prices, and challenges in signing power purchase agreements could affect growth. Additionally, heavy reliance on long-term debt financing exposes the company to interest rate risks. Effective risk management and timely project execution remain critical for sustaining growth.
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Why Is ACME Solar Attractive For ESG Investors?
As global funds increasingly allocate towards ESG-compliant investments, ACME Solar’s portfolio of renewable projects makes it a prime candidate for such inflows. Institutional investors are likely to view ACME as a key beneficiary of India’s commitment to achieving 500 GW of renewable energy capacity by 2030. Its ESG-friendly profile could attract long-term capital, reducing reliance on debt-heavy financing models.
What Should Investors Expect Going Forward?
Dolat Capital’s target price of ₹380, based on 10x FY28E EBITDA, reflects confidence in ACME’s execution capabilities. Investors can expect steady upward re-rating if the company delivers on commissioning milestones. Over the long term, ACME’s diversified renewable portfolio, robust pipeline, and early adoption of battery storage will be key growth levers.
Investor Takeaway
ACME Solar represents a rare combination of high growth, structural tailwinds, and ESG attractiveness in India’s renewable sector. With strong capacity addition plans, favorable policy support, and Dolat Capital’s bullish view, the stock offers long-term potential. 📌 Read free content at Indian-Share-Tips.com, which is a SEBI Registered Advisory Services.
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Written by Indian-Share-Tips.com, which is a SEBI Registered Advisory Services