ACME Solar Holdings Can Rally 40% Says Motilal Oswal On Strong Execution, Ebidta Upgrade

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Motilal Oswal Report

We continue to value Acme Solar Holdings Ltd. at 10 times FY28E Ebitda (discounted by one year) to arrive at our target price of Rs 347, implying 40% potential upside.

In the last three months, Acme’s share price has outperformed its close competitor NTPC Green by 24%. While Acme has demonstrated commissioning of 1.6GW since IPO, NTPC Green has missed capacity addition targets, commissioning only 1.9GW (including a 50% share in Ayana acquisition of 2.1GW) vs the guided commissioning target of 3GW in FY25.

Acme is currently trading at 8.9x FY28 EV/Ebitda, which we believe offers a reasonable margin of safety given the aggressive PPA-backed capacity ramp-up and strong execution track record.

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