Clean Max shares have surged 13% over the past three sessions, driven by Macquarie's initiation of coverage with an outperform rating. This marks the second brokerage to cover the stock in recent days, following JM Financial.
Macquarie's bullish outlook is based on expectations that CleanMax's installed base will more than double to approximately 8 GW by FY29E, supported by repeat C&I business and exposure to Data & AI transactions.
Macquarie anticipates that C&I users, who account for over 50% of electricity consumption, will increasingly adopt renewables to lower costs and pursue decarbonisation. The brokerage estimates potential savings of up to 35% for corporates shifting away from expensive DISCOM supply.
Financially, Macquarie forecasts an incremental capacity of around 5 GW through FY29E, driving a Power Sales EBITDA CAGR of over 50% from FY26-29E. Despite an estimated capex of Rs 260 billion, which keeps free cash flow negative and leverage high, lower borrowing costs and strategic co-investments are expected to reduce net debt/EBITDA to 7.5x by FY29E.
JM Financial has also initiated coverage on Clean Max with a Buy rating and a target price of Rs 1,501, highlighting the company's strong position in the C&I market. The brokerage values the stock at 10.5x FY28E run-rate EBITDA and notes CleanMax's leadership and customer stickiness as key advantages.
Background
The recent interest from brokerages underscores the growing momentum in India's corporate green energy transition, with CleanMax well-positioned to capitalize on this trend. As the C&I segment continues to expand, driven by rising electrification needs and data center growth, CleanMax's strategic positioning could offer significant upside.
Looking ahead, investors will be watching for CleanMax's ability to execute on its growth plans and manage potential regulatory, execution, and dilution risks. The company's performance in expanding its capacity and maintaining customer savings will be critical to sustaining its market momentum.
