# Powerica Shares Jump 48% Above IPO Price

> Nuvama bets on 20% more returns for Powerica shares with Buy call.
- Title: Powerica Shares Jump 48% Above IPO Price · mint | Shortify
- Summary: Nuvama bets on 20% more returns for Powerica shares with Buy call. Powerica shares rose 48% above IPO price after Nuvama initiated coverage with a Buy rating…
- Keywords: powerica, nuvama, ipo, buy call, shares, data centres, wind power, emission control devices, recds, cagr, money, business
- Source: mint — https://livemint.com/market/stock-market-news/powerica-shares-jump-48-above-ipo-price-nuvama-bets-on-20-more-returns-with-buy-call-what-backs-its-bullish-call-11792397930514.html
- Author: Dhanya Nagasundaram
- Published: 2026-10-19T09:01:45+00:00
- Read time: 1 min
- Topics: powerica, nuvama, ipo, buy call, shares, data centres, wind power, emission control devices, recds, cagr, money, business
## Powerica Shares Jump 48% Above IPO Price
Powerica shares rose 48% from IPO price of ₹395 to ₹584.85 on Friday.

> Powerica Ltd shares have gained nearly 48% from their initial public offering (IPO) price of ₹ 395, closing at ₹ 584.85 on Friday.
## Nuvama Initiates Buy Rating
Nuvama started coverage with a Buy rating and ₹700 target, implying 20% upside from Friday's close.

> Nuvama initiated coverage of Powerica with a Buy rating and a ₹ 700 target, implying about 20% upside from Friday’s close.
## Three Growth Drivers
Nuvama expects growth from data centres, wind capacity expansion, and emission control devices.

> 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).
## Data Centres Drive DG Growth
Powerica's data centre order book is ₹1,100 crore vs FY26 sales of ₹340 crore.

> Nuvama highlighted Powerica's data centre order book of around ₹ 1,100 crore, compared with FY26 data centre sales of approximately ₹ 340 crore
## Wind Capacity Expansion
Powerica's wind capacity expected to grow from 330 MW to 631 MW by FY29.

> Powerica's wind capacity is expected to increase from approximately 330 MW to 631 MW by FY29
## RECDs Offer Long-Term Growth
RECD addressable market at ₹60,000 crore with only five to six certified competitors.

> Nuv: Nuvama estimates the addressable market at around ₹ 60,000 crore, with only five to six certified competitors.
## Earnings Growth Projections
Nuvama projects 21% CAGR in DG PAT, 44% in wind EBITDA, and 27% in RECD PAT over FY26, FY29.

> 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.
## Key Risks Identified
Risks include passing on costs, capital expenditure recovery, project execution, and RECD mandates.

> Key risks include the ability to pass on price increases, a sustained recovery in private-sector capital expenditure, timely commissioning of wind capacity, expansion of RECD mandates and securing wind projects at profitable tariffs.
## Valuation and Outlook
Nuvama sees attractive valuations with FY29 EBITDA multiple of 6.8x and PAT multiple of 21x.

> Nuvama considers valuations attractive, citing FY29 estimated enterprise value-to-EBITDA of around 6.8 times for the wind business and a price-to-earnings multiple of around 21 times for DG sets.
## Key takeaway

Powerica shares rose 48% above IPO price after Nuvama initiated coverage with a Buy rating and ₹700 target.