ACME Solar Holdings PRIBLE OBJECTIVE: ACME Solar Holdings is a renewable energy producer that produces solar, wind and hybrid energy. As a producer of independent electricity, the company develops, builds, has, operates and maintains renewable energy projects. After its IPO in November at Rs 289, the stock dropped by 35% to negotiate approximately Rs 192. Analysts initiated coverage with an aggressive target of 70%.
Objective of the ACME Solar Holdings action course
Nuvama Institutional launched the cover of the Solar Acme holdings with a note « Buy » and set a target price of RS 328. This objective represents a potential gain of more than 70% compared to the current price. The company’s IPO was launched in November at Rs 289, and it scored the NSE at Rs 248. The title reached an RS 292 summit in December, but has since dropped by 35% at its current price. In January, the stock dropped as low as Rs 167.
Strong growth prospects for the sector and the company
According to analysts, the renewable energies sector increases rapidly, with huge investments. If electricity demand increases by only 5%, India can face a shortage by 2030-32. ACME plans to increase its electricity production capacity by 1.3 GW to 7 GW by 2028. The company has a solid project pipeline and plans to guarantee agreements to sell 53% of its power. The prospects for the sector are brilliant and ACME is doing well.
EPC and O&M advantage internal
ACME Solar Holdings has an internal engineering, supply and construction division (EPC), as well as an effective operating and maintenance team. The internal offers flexibility in processes, costs and deadlines, and also allows the optimization of these installations.
ACME Solar Holdings generates energy and then concludes long -term electricity purchase agreements (APP) from customers, governments of states and the central government. As a rule, these agreements are 25 years at a fixed rate.
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