Shares of Clean Max Enviro Energy jumped over 3% in early trade on Monday. Nomura has initiated coverage on Clean Max Enviro Energy with a Buy rating and a target price of Rs 1,510, citing the renewable energy company's positioning at the intersection of decarbonisation, corporate and industrial (C&I) power demand, and the growing energy requirements of artificial intelligence infrastructure.
The brokerage sees Clean Max as a play on "decarbonising technology" and C&I tariff arbitrage, with its business model benefiting from the structural shift among commercial and industrial customers towards renewable power.
39% Revenue CAGR, 50% EBITDA CAGR Seen Through FY29
Nomura estimates Clean Max's revenue to grow at a 39% compound annual growth rate (CAGR) between FY26 and FY29, while EBITDA is expected to compound at 50% over the same period.
The brokerage's optimism is underpinned by the company's ability to offer customers attractive renewable power economics while benefiting from long-term contracted arrangements.
According to Nomura, the company's tariff arbitrage opportunity is structurally locked-in, providing greater visibility into the economics of its projects.
Capital-Efficient Structuring Supports Returns
Nomura also highlights Clean Max's superior tariff economics, aided by a capital-efficient approach to structuring its renewable energy projects.
The model allows the company to serve C&I customers seeking lower-cost and cleaner electricity, while creating an opportunity to capture the spread between conventional grid tariffs and renewable power costs.
This combination of long-term customer contracts, tariff arbitrage and capital-efficient project structures is expected to support earnings growth and improve the scalability of the business.
AI Infrastructure Provides Second-Order Growth Opportunity
Beyond conventional C&I demand, Nomura sees a potential second-order benefit from the expansion of AI infrastructure.
The rapid build-out of data centres and associated digital infrastructure is expected to drive significant incremental electricity demand. As data-centre operators increasingly focus on securing reliable, competitively priced and renewable power, renewable energy platforms such as Clean Max could benefit indirectly from this structural demand shift.
Nomura therefore views Clean Max not merely as a renewable power producer, but as a potential beneficiary of the broader electrification, decarbonisation and AI infrastructure investment cycle.
With its Rs 1,510 target price and Buy rating, Nomura's thesis rests on strong projected growth, structurally favourable tariff economics and increasing renewable power demand from India's C&I and emerging AI infrastructure ecosystem.
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