HSBC Global Investment Research has initiated coverage on ACME Solar Holdings and Clean Max Enviro Energy Solutions. The brokerage sees a renewable energy sector reaching another inflection point, citing cost advantages, strong policy support, and rising power demand.
Analysts initiated ‘Buy’ on ACME Solar Holdings stock with a target price of ₹350. Similarly, Clean Max Enviro Energy stock is rated ‘Buy’ as well with a target price of ₹1,150.
Why is HSBC Global upbeat on India’s renewable energy (RE) sector?
Structural case
Analysts believe the growth in power demand in India is a structural story, driven by urbanisation, industrialisation, and electrification, with renewable energy emerging as an unstoppable force underpinned by public and private decarbonisation targets, supportive regulations, and, more importantly, lower costs. Solar power is now available at less than half the price of thermal power, with renewables broadly 30-50 per cent cheaper than thermal.
Over the past five years, approximately 80 per cent of new energy capacity has come from renewables, and in the first eleven months of FY26, renewables accounted for approximately 88 per cent of capacity additions. Renewables currently make up 17 per cent of the country's power mix in terms of generation.
Execution over capital
While the cost of capital was historically the dominant factor in the renewable energy business, the brokerage believes that is changing. With increasing challenges around land acquisition, transmission, and design, project execution capabilities are now seen as the key differentiator that will define winners in the sector.
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BESS: A game change
Battery energy storage solutions (BESS) are now available at competitive rates, providing renewable energy with another significant boost — particularly in addressing the shortage of power during evening hours when solar generation goes offline, HSBc noted. As BESS adoption widens, analysts expect power distribution companies and commercial and industrial (C&I) customers to accelerate their shift to renewables, with execution remaining a critical factor given tight economics.
Two business models
The largest segment of the RE market operates on a developer-to-distributor (D2D) model, where developers sell power to distribution companies, which in turn supply households, C&I enterprises, and the agricultural sector. A second model — developer-to-consumer (D2C) — involves selling renewables directly to C&I enterprises, bypassing distribution companies entirely. Analysts believe both models are viable and can co-exist, supported by strong policy backing and the growing corporate commitment to renewable energy.
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