ACME Solar Holdings shares post biggest single-day gain in over eight months, here is why

Shares of ACME Solar Holdings, the renewable energy solutions provider, rose as much as 7.63%, its biggest single-day gain in over eight months, to hit an intraday high of ₹289 on the National Stock Exchange (NSE) on Monday, April 13. On the BSE, ACME Solar shares advanced as much as 7.57% amid spike in trading activity.

ACME Solar Holdings shares came under buying interest after the research arm of global investment firm HSBC Global Investment Research said that ACME Solar Holdings (ACME) is a fast-growing renewable energy independent power producer, which is fully vertically integrated in terms of engineering, procurement and construction, as well as operations and maintenance (O&M).

HSBC Global Investment Research said that ACME currently operates around 3 gigawatts (GW) of generation capacity and has 3.3GW contracted capacity under 25-year signed power purchase agreements (PPAs).

“These projects are anticipated to increase ACME’s overall capacity by 2.7 times over the next 2-3 years. ACME also has a further 1.8GW of awarded projects that are still awaiting conversion into PPAs. Strategically, the business is evolving from a pure-play solar provider to more complex firm and dispatchable renewable energy (FDRE) projects, which require a combination of solar, wind, and battery storage capacity,” HSBC Global Investment Research said.

HSBC Global Investment Research added that the company stands to benefit from battery energy storage system (BESS) business.

“The use of BESS enhances grid stability, reduces energy costs, and provides back-up power, especially during the evening peak period. As BESS costs fall and confidence around viability increases, we believe the adoption of renewables will increase. ACME already has 1.1GWH of BESS, which will allow it to generate additional merchant revenue before this capacity is integrated into more advanced FDRE projects,” HSBC added.

HSBC expects that the company's EBITDA to grow at compounded annual growth rate (CAGR) of 72% over FY26-28.

“Earnings visibility is strong as 84% of ACME’s contracted portfolio with 25-year fixed tariff PPAs are backed by central government agencies. We also think the company is well placed to benefit from the early adoption of BESS and FDRE projects,” HSBC said.

ACME shares were witnessing higher than usual trading activity as trading volume spiked by six times to 71.11 lakh shares compared with an average trading volume of 12.26 lakh shares. On the BSE, as many as 5.39 lakh shares changed hands compared with an average of 1.31 lakh shares traded daily in the past two weeks.

As of 1:51 pm, ACME Solar Holding shares traded 6.09% higher at ₹285, outperforming the NIFTY 500 index which was down 0.65%.