Powerica Ltd shares have gained nearly 48% from their initial public offering (IPO) price of ₹395, closing at ₹584.85 on Friday. Listed on the BSE and NSE on 2 April 2026, the stock has also advanced 34.51% over the past six months.
Despite the sharp gains, Nuvama Institutional Equities sees further upside in the stock, initiating coverage with a Buy rating and a target price of ₹700. This implies an upside potential of around 20% from Friday's closing price.
Nuvama's bullish view rests on three growth drivers: a recovery in the company's diesel generator (DG) business, expansion of its wind independent power producer (IPP) portfolio and the long-term opportunity in retrofit emission control devices (RECDs).
Powerica's diversified power-solutions portfolio spans DG sets, wind power generation and RECDs. Nuvama expects these businesses to deliver strong earnings growth over FY26–FY29, supported by rising data centre demand, more efficient wind turbines and wider adoption of emission-control technology.
The brokerage projects a compound annual growth rate (CAGR) of around 21% in DG business profit after tax (PAT), 44% in wind IPP earnings before interest, taxes, depreciation and amortisation (EBITDA), and 27% in RECD PAT over FY26–FY29.