Clean Max Enviro Energy Solutions shares rise 4% after Nomura says ‘buy’ for 21% upside

Clean Max Enviro Energy Solutions shares rise 4% after Nomura says 'buy' for 21% upside


Shares of Clean Max Enviro Energy Solutions Ltd. gained more than 4% on Monday, August 31, after Nomura initiated coverage on the renewable energy company with a “Buy” rating and a target price of ₹1,510 per share.

Nomura’s target implies an upside of around 21% from Friday’s closing price of ₹1,250.90.

The brokerage expects Clean Max’s revenue and EBITDA to grow at a compound annual growth rates (CAGR) of 39% and 50%, respectively, over FY26-29.

Also read: Pancreatic cancer medicine gets US approval; Here’s what we know about the ‘miracle drug’

Nomura on Clean Max

Nomura said the skewed tariff structure in India’s power market results in commercial and industrial (C&I) consumers paying 60% – 120% more than subsidised segments.

According to the brokerage, this creates an opportunity for independent power producers (IPPs) such as Clean Max to undercut grid tariffs through direct power supply.

For customers, the C&I renewable energy model offers 20%-60% savings compared with grid tariffs, while developers benefit from higher equity returns due to the tariffs charged to C&I customers, Nomura said.

The Bloomberg analyst data shows a Buy rating from all six rated analysts covering the stock, with no Hold or Sell recommendations.

Clean Max Q1 results

The green energy supplier reported a strong Q1FY27, with revenue more than doubling year-on-year and the company returning to profit.Revenue rose 107% to ₹832 crore, while adjusted Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) increased 74% to ₹494 crore. The company reported a PAT of ₹55 crore, compared with a loss of ₹16.6 crore in the year-ago quarter. The EBITDA margin, however, narrowed to 50% from 70.6%.

Clean Max added a record 0.53 GW of renewable energy capacity during the quarter, taking its contracted capacity to 6 GW as of June-end.

The company retained its ₹3,000 crore minimum EBITDA guidance for FY28 and its FY27 target of commissioning at least 1.5 GW of renewable capacity.

Shares of Clean Max are off the highs of the day, now trading 1.2% higher at ₹1,264.9. The stock is down 5% for the last one month, but has gained nearly 50% so far on a year-to-date basis.



Source link

Leave a Reply

Your email address will not be published. Required fields are marked *