Roth/MKM downgraded its rating on ReNew Power to Neutral from Buy, citing the accelerating take-private transaction and the narrowing gap between the offer price and the company’s trading level.
The analyst firm lowered its price target to $7.02 from $8.00, aligning it with the $7.02 per share cash offer for the renewable energy company. Approximately 51% of ReNew Power’s shareholders have already committed irrevocable undertakings in support of the deal, according to available filings. The stock is currently trading near the offer price, reducing the relevance of fundamental valuation metrics.
InvestingPro’s Fair Value estimate stands at $7.01, closely matching the transaction price and reinforcing the market’s perception of deal certainty. Roth/MKM noted that the convergence between the offer and trading levels shifts focus away from the company’s operational performance.
ReNew Power reported first-quarter fiscal 2027 results that exceeded expectations, driven by robust manufacturing segment performance. The solar division underperformed due to lower solar irradiation and grid curtailment, partially offsetting the gains. The company reiterated its fiscal 2027 guidance, with the manufacturing contribution appearing conservative relative to the quarter’s outperformance.
For the trailing twelve months, ReNew Power reported a gross profit margin of 81%, revenue growth of nearly 22%, total income of INR 47.9 billion, and revenue of INR 44.6 billion. Adjusted EBITDA rose 12% year-over-year to INR 30.4 billion, while profit after tax increased 16% to INR 6 billion.
