Acme Solar Holdings
Stock Snapshot
Price Performance
Vista Outlook
Basis of our Recommendation
ACME Solar Holdings is strategically transitioning towards an integrated clean energy model, emphasizing Battery Energy Storage Systems (BESS) and firm dispatchable power. Management's focus on leveraging in-house capabilities to mitigate supply chain risks and optimize project execution aligns with Vista's forecast of accelerating revenue growth and improving margins. The company's robust pipeline of signed Power Purchase Agreements (PPAs) and ambitious capacity expansion plans, targeting 10 GW of generation and 25 GWh of storage by 2030, underpin a positive long-term outlook. However, execution risks related to grid connectivity and regulatory challenges remain critical watchpoints. The current macro environment, while supportive of growth, presents inflationary pressures that could impact operational costs. Overall, ACME Solar is well-positioned to capitalize on the increasing demand for renewable energy solutions, with a projected 35.73% upside in valuation over the next 12-24 months, reinforcing Vista's buy recommendation
Why We Like This Stock
- Transition to a BESS-integrated business model enhances revenue potential and margin stability
- Strong pipeline of signed PPAs and ambitious capacity targets support robust revenue growth
- Management's focus on operational excellence and capital discipline positions the company for sustainable long-term growth
Things To Watch Out For
- Execution risks related to grid connectivity and regulatory challenges could impact project timelines
- Inflationary pressures may affect operational costs and margin expansion
- High capital expenditure requirements for BESS expansion could pressure margins if not managed effectively
Key Parameters
Financial Snapshot
View Technicals Analysis →| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 1,319 | 1,405 | 2,023 | 2,769 | 4,156 |
| Profit Before Tax (Cr.) | 165 | 361 | 674 | 930 | 1,317 |
| PBT Margin | 12.5% | 25.7% | 33.3% | 33.6% | 31.7% |
| Net Profit (Cr.) | 232 | 282 | 506 | 702 | 993 |
| Earnings Per Share | 3.3 | 4.0 | 7.2 | 9.9 | 14.1 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| HSBC | ▲ Buy | 450 | 15-Sep-2026 |
| Nuvama | ▲ Buy | 448 | 11-Sep-2026 |
| ICICI Securities | ▲ Buy | 450 | 31-Jul-2026 |
| Motilal Oswal | ▲ Buy | 427 | 30-Jul-2026 |
| Elara Capital | ► Accumulate | 387 | 25-Jun-2026 |
| JMFinancials | ▲ Buy | 341 | 09-Jun-2026 |
| HDFC Securities | ▲ Buy | 342 | 13-May-2026 |
Company Overview
Show Company Profile
ACME Solar Holdings Limited, a solar independent power producing company, engages in developing, building, owning, operating, and maintaining utility scale grid connected solar power projects in India. The company owns and operates solar energy projects with installed capacity of 2540 MW; and develops and constructs solar energy projects with capacity of 3780 MW. It is also involved in the wind power and hybrid power generation business. In addition, the company provides engineering, procurement, and construction services, as well as operation and maintenance services. It serves central and state government-backed entities. The company was founded in 2003 and is based in Gurugram, India. ACME Solar Holdings Limited is a subsidiary of ACME Cleantech Solutions Limited.