Shares of Clean Max Enviro Energy Solutions Ltd. jumped over 3% in early trade on Wednesday, September 23, after Macquarie initiated coverage on the renewable energy company with an ‘Outperform' rating and a target price of Rs 1,700.
The stock was trading at Rs 1,416 apiece, up 3.55%, at around 9:56 a.m. on the National Stock Exchange. At the target price, Macquarie sees around 20% upside from the stock's current level.
Clean Max shares have gained more than 13% over the past three trading sessions.
Macquarie On Clean Max
Macquarie expects Clean Max's installed renewable energy capacity to more than double to around 8 GW by fiscal 2029.
According to the brokerage, Clean Max's repeat C&I business and exposure to the data and artificial intelligence segments could support growth and longer-term earnings in an underpenetrated C&I renewables market.
The brokerage has also estimated that the company could add around 5 GW of incremental capacity through fiscal 2029. This is expected to drive a Power Sales Ebitda compound annual growth rate of more than 50% between fiscal 2026 and fiscal 2029.
Furthermore, the brokerage expects Clean Max's capital expenditure to remain elevated, with estimated capex of around Rs 260 billion. This is likely to keep free cash flow negative and leverage elevated in the near term.
However, Macquarie expects lower borrowing costs, strategic co-investments and Ebitda growth to help reduce net debt-to-Ebitda towards 7.5 times by fiscal 2029.
Also Read: CleanMax Stock Could Rise 26%? Macquarie Sees 51% EBITDA CAGR Through FY29 — Check Target Price
Clean Max Share Price Movement
The stock has gained 10.06% over the past week and 11.79% in the past month, while its year-to-date gain stands at 63.26%.
In the past 52 weeks, the stock has traded between Rs 1,536 and Rs 727.10. Its market capitalisation stood at around Rs 16,525 crore at 10:18 a.m. today, when the stock is trading at Rs 1,405 apiece, up 2.71% from the previous close at Rs 1,367.5 apiece.
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