--- title: "HSBC raises CleanMax target price by 25%, maintains buy on strong renewable growth outlook" type: "News" locale: "en" url: "https://longbridge.com/en/news/286490694.md" description: "HSBC has maintained a 'buy' rating on CleanMax Enviro Energy Solutions Ltd, raising its target price by 25% to Rs 1,650 per share. The brokerage cites strong capacity expansion and rising demand for green power, projecting a 60% CAGR growth in EBITDA from FY26-28. CleanMax's EBITDA run-rate increased significantly, with net profit nearly tripling. However, concerns include changes in accounting policy and lower fresh contract signings. HSBC increased its valuation multiple to reflect growth potential, while noting risks such as regulatory changes and high leverage." datetime: "2026-05-15T01:22:58.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/286490694.md) - [en](https://longbridge.com/en/news/286490694.md) - [zh-HK](https://longbridge.com/zh-HK/news/286490694.md) --- # HSBC raises CleanMax target price by 25%, maintains buy on strong renewable growth outlook Brokerage HSBC has maintained its “buy” rating on Clean Max Enviro Energy Solutions Ltd and raised its target price by 25 percent to Rs 1,650 a share, citing strong capacity expansion, rising demand for green power and emerging opportunities linked to data centres and AI customers. The brokerage said FY26 marked a significant scale-up year for CleanMax, with the company nearly doubling its EBITDA run-rate as installed capacity rose 80 percent year-on-year to around 3.1 GW. According to HSBC, EBITDA run-rate increased 64 percent over FY25 to Rs 1,870 crore, while reported EBITDA grew 28 percent year-on-year. Net profit surged nearly three-fold to Rs 94.1 crore during the year. The company signed 1.2 GW of fresh contracts in FY26, taking its unexecuted contracted power sale capacity to 2.6 GW. CleanMax also expanded its evacuation infrastructure capacity to 6 GW from 3.4 GW a year ago, improving long-term growth visibility. HSBC said it expects around 60 percent CAGR growth in EBITDA over FY26-28 as corporates increasingly shift toward renewable power, which remains around 35 percent cheaper than grid electricity. The brokerage highlighted strong momentum in capacity additions and lower financing costs as key positives. Cost of project debt declined to 8.5 percent from 9.2 percent a year ago. It also noted that customer diversification continues to improve, with around 42 percent of contracted capacity now coming from data centre and AI-linked customers. In its investment thesis, HSBC described CleanMax as one of the largest and fastest-growing direct-to-consumer renewable energy suppliers for commercial and industrial users. The brokerage said the company’s business model benefits from repeat customers, geographical diversification, execution capabilities and its ability to invest upfront capital, making replication difficult. HSBC, however, flagged concerns around a change in accounting policy related to the useful life of assets, which reduced depreciation expenses. It also noted that fresh contract signings during FY26 were lower than the previous year, although it said such signings can often remain uneven across periods. The brokerage increased its valuation multiple to 11.5 times FY28 estimated EBITDA run-rate from 10 times earlier to reflect faster growth potential and emerging opportunities. HSBC said key downside risks include regulatory changes, high leverage and a rise in equipment or borrowing costs. ### Related Stocks - [HSBA.UK](https://longbridge.com/en/quote/HSBA.UK.md) - [HSBC.US](https://longbridge.com/en/quote/HSBC.US.md) - [00005.HK](https://longbridge.com/en/quote/00005.HK.md) - [HSBH.US](https://longbridge.com/en/quote/HSBH.US.md) - [DTIW.SG](https://longbridge.com/en/quote/DTIW.SG.md) ## Related News & Research - [HSBC Sticks to Its Buy Rating for NWS Holdings (NWSZF)](https://longbridge.com/en/news/286628463.md) - [HSBC Sets Out Board Line-Up and Committee Roles Under Hong Kong Rules](https://longbridge.com/en/news/285855624.md) - [HSBC to Issue US$1.5 Billion Perpetual Contingent Convertible Securities](https://longbridge.com/en/news/286011865.md) - [Key facts: HSBC takes $400m Atlas‑SP loan charge; issues €3.5bn notes](https://longbridge.com/en/news/286175629.md) - [Key facts: HSBC prices $4.5bn notes; UK bill allows back office sharing](https://longbridge.com/en/news/286337364.md)