Power Stocks: Anand Rathi Sees Demand Cycle Shifting to Value, Flags Clean Max and ACME Solar

Power stocks are back in focus after Anand Rathi said the power demand cycle is shifting to value. The brokerage expects India's power capacity to grow at a 7.7% CAGR through FY36E, with solar growing at 13% and wind at 10.7%, and it shared views on Clean Max and ACME Solar.

The call comes on a weak day, as the Sensex fell 1.44% to 71,593.24 on 8 October. This article covers what the capacity numbers mean, how the two power stocks compare on price and valuation, what other brokers have said, and the risks.

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What Did Anand Rathi Say About Power Stocks?

Anand Rathi's headline view is that the power demand cycle is moving towards value. Its capacity estimates are a 7.7% CAGR through FY36E for total power capacity, 13% for solar and 10.7% for wind. Solar therefore grows faster than the overall system, which is why renewable power stocks are the focus.

We could not find the full report, so the brokerage's ratings and targets are not covered here. Targets quoted below come from other brokers and are labelled as such.

Why Are Renewable Power Stocks Gaining Attention?

Renewables are taking most of the new capacity. HSBC said in April 2026 that renewables were about 80% of new capacity additions over five years, and that they cost 30% to 50% less than thermal power. It also noted that battery storage is now competitive.

A 13% solar CAGR means solar capacity roughly doubles in about six years, which supports developers with large contracted pipelines.

Clean Max vs ACME Solar: How Do These Power Stocks Compare?

Metric (8 Oct 2026)	Clean Max Enviro Energy Solutions	ACME Solar Holdings
CMP (Rs)	1,348.30	420.40
Day change	-2.90%	-3.61%
Market cap (Rs crore)	16,356	30,834
52-week range (Rs)	727.10 to 1,536.00	195.90 to 476.90
P/E (industry P/E)	103.91 (22.45)	51.20 (23.47)
ROE	2.03%	9.86%
Debt to equity	2.73	3.93
P/B	3.53	3.92

Both power stocks trade well above their industry P/E, and both carry high debt. ACME Solar has the larger market cap and the better return on equity, while Clean Max has the richer earnings multiple.

Clean Max: Fast Growth, Rich Valuation

Clean Max listed at an IPO price of Rs 1,053, raising Rs 3,080 crore, and now trades about 28% above it. In Q1 FY27 it commissioned a record 530 MW, reported a net profit of Rs 55 crore against a loss of Rs 16.6 crore a year earlier, and posted adjusted EBITDA of Rs 494 crore, up 74%, according to Business Today. Data centre and AI clients make up 42% of its contracted portfolio of 6 GW.

Its FY28 guidance is a minimum reported EBITDA of Rs 3,000 crore. Against that, a P/E of 103.91 and a return on equity of 2.03% show that the price already reflects strong growth.

ACME Solar: Larger Base, Storage Push

ACME Solar trades about 12% below its 52-week high of Rs 476.90. Centrum has a Buy rating with a target of Rs 458, about 9% above the current price, and expects Q2 revenue to rise 86.4% year on year on roughly 4 GWh of merchant storage, with operational capacity at 3,057 MW. It also warns that Q2 is seasonally weak for solar and that the storage mix lowers margins.

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What Are the Broker Targets for These Power Stocks?

These targets are from other brokers, not Anand Rathi, and the Clean Max targets date from August 2026.

Stock	Broker	Rating	Target (Rs)	Upside vs CMP
Clean Max	JP Morgan	Overweight	1,478	+9.6%
Clean Max	HSBC	Buy	1,700	+26.1%
Clean Max	Antique	Buy	1,711	+26.9%
Clean Max	IIFL	Buy	1,400	+3.8%
ACME Solar	Centrum	Buy	458	+8.9%

Targets are opinions and change with results. The Clean Max range of Rs 1,400 to Rs 1,711 shows how widely brokers differ on the same power stocks.

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Key Risks in Power Stocks Like Clean Max and ACME Solar

Debt and Interest Costs

ACME Solar has a debt-to-equity ratio of 3.93 and Clean Max 2.73. HSBC has flagged borrowing and equipment costs as risks for Clean Max, so rate moves matter for these power stocks.

Regulation and Curtailment

Policy changes can alter returns. Clean Max's 525 MW Bikaner-II asset has seen output curtailed by about 70%, according to reports, showing that grid limits can hit earnings.

Valuation

Both power stocks fell about 3% on 8 October. A P/E of 103.91 leaves Clean Max little room if growth slows.

Conclusion

Anand Rathi's 7.7% capacity CAGR, with solar at 13%, supports the case for renewable power stocks, but Clean Max and ACME Solar already trade at high multiples with heavy debt. Investors should compare ACME Solar's better return on equity with Clean Max's faster growth, and treat broker targets as one input among several.

Frequently Asked Questions on Power Stocks

What did Anand Rathi say about power stocks?

Ans. Anand Rathi said the power demand cycle is shifting to value and that India's power capacity could grow at a 7.7% CAGR through FY36E, led by solar at 13% and wind at 10.7%. It shared views on Clean Max and ACME Solar.

Which power stocks did Anand Rathi discuss?

Ans. The brokerage discussed Clean Max Enviro Energy Solutions and ACME Solar Holdings, two listed renewable power producers.

What is the Clean Max share price today?

Ans. Clean Max closed at Rs 1,348.30 on 8 October 2026, down 2.90% on the day, with a market cap of Rs 16,356 crore. Its 52-week range is Rs 727.10 to Rs 1,536.

What is the ACME Solar share price today?

Ans. ACME Solar closed at Rs 420.40 on 8 October 2026, down 3.61% on the day, with a market cap of Rs 30,834 crore. Its 52-week range is Rs 195.90 to Rs 476.90.

Why are renewable power stocks in focus?

Ans. Renewables are expected to supply most new capacity. HSBC said in April 2026 that renewables were about 80% of new capacity over five years and that solar and wind power cost 30% to 50% less than thermal.

What are the main risks in power stocks like Clean Max and ACME Solar?

Ans. Key risks include regulatory change, high debt, equipment and borrowing costs, curtailment of output at some assets, and rich valuations. Clean Max has a P/E of 103.91 and ACME Solar a debt-to-equity ratio of 3.93.

What are broker targets for Clean Max?

Ans. As reported by Business Today in August 2026, JP Morgan had Rs 1,478 (Overweight), HSBC Rs 1,700 (Buy), Antique Rs 1,711 (Buy) and IIFL Rs 1,400 (Buy). These were not Anand Rathi targets.

Are power stocks a good buy now?

Ans. That depends on risk appetite. Demand growth is supportive, but both stocks fell about 3% on 8 October and carry high valuations and debt, so investors should check fundamentals and avoid relying on one broker view.