ICICI Securities has initiated coverage on three renewable energy counters in India, namely Adani Green Energy, NPTC Green Energy, and ACME Solar Holdings, with a positive outlook. The brokerage firm sees significant upside potential in these utilities' counters, indicating a favorable market sentiment towards the renewable energy sector. With India's ambitious targets of achieving over 40% renewable energy penetration by 2030 and net zero emissions by 2070, the energy transition in the country is gaining momentum. This transition is supported by various conducive steps such as renewables consumption obligations, reduced transmission charges for renewable energy, and significant bidding opportunities in the upcoming years. The brokerage firm emphasizes that the ongoing transition is rooted in renewable energy economics, with declining storage costs and the potential adoption of green hydrogen further enhancing the market prospects. The winners in this sector are expected to demonstrate high capital efficiency, which will be evaluated through metrics like capex to Ebitda and EV to EBITDA for portfolio valuation. ICICI Securities has assigned 'buy' and 'add' ratings to Adani Green Energy, ACME Solar, and NPTC Green, with corresponding target prices indicating potential upsides in these stocks. While ACME Solar Holdings and NPTC Green Energy recently made their stock market debuts, their share prices have experienced fluctuations since their IPOs. Despite the short-term decline in stock prices, the long-term outlook for these renewable energy companies remains positive, attracting attention from domestic brokerage firms like ICICI Securities and IIFL Capital. These firms anticipate a significant increase in the profit pool for renewable developers due to the energy transition, emphasizing the creation of new profit pools and value capture through integration strategies. Investors interested in the renewable energy sector are advised to consider consulting with financial advisors before making investment decisions, as stock market news provided by sources like Business Today is for informational purposes only.