Powerica Stock Surges After IPO as Brokerage Issues Buy Rating

Powerica shares have climbed nearly 48 percent from their initial public offering price of ₹395, closing at ₹584.85 on Friday. The stock has gained 34.51 percent over the past six months after listing on the BSE and NSE on April 2, 2026.

Growth Outlook

Nuvama Institutional Equities has started coverage of the company with a Buy rating and a target price of ₹700, pointing to about 20 percent upside from Friday's close. The brokerage expects strong earnings growth across three main segments between fiscal 2026 and fiscal 2029. Profit after tax in the diesel generator business is projected to grow at a compound annual rate of about 21 percent. Wind independent power producer earnings before interest, taxes, depreciation, and amortisation are expected to surge at a 44 percent compound annual growth rate. Profit after tax for retrofit emission control devices is forecast to grow at 27 percent.

Market Drivers

Powerica operates as one of only three generator original equipment manufacturers for Cummins in India. The company holds a data centre order book of about ₹1,100 crore, backed by strong demand in southern and western India. Meanwhile, wind capacity is slated to expand from 330 megawatts to 631 megawatts by fiscal 2029 through secured letters of award. Newer turbines will increase from 65 percent to about 82 percent of the fleet, pushing blended plant load factors to roughly 29.4 percent.

Context

Brokerage firms routinely issue coverage and target prices on newly listed companies to guide potential investors based on projected industry trends and financial health. Such forecasts depend heavily on broader economic conditions and corporate execution. Equity markets in India trade actively on major exchanges like the Bombay Stock Exchange and the National Stock Exchange.