Roth/MKM cuts ReNew Power stock rating on take-private deal

Roth/MKM revised their stock rating for ReNew Power (RNW) to Neutral from Buy, reducing the price target to $7.02 from $8.00. The downgrade comes after RNW delivered a strong first-quarter fiscal 2027 performance, boosted by solid manufacturing results despite a weaker solar segment. The company's impressive gross profit margin of 81% and revenue growth of nearly 22% in the past year highlight the manufacturing segment's resilience, according to InvestingPro data.

ReNew Power has maintained its fiscal 2027 guidance, but the manufacturing contribution is now seen as more conservative due to the positive quarter's impact. The firm's deal at $7.02 per share appears imminent, with around 51% of shares already committed via irrevocable undertakings. With shares trading near the offer price, the emphasis shifts from fundamentals to the certainty of the transaction.

The Fair Value of $7.01 from InvestingPro matches the $7.02 offer price, reinforcing the deal's valuation. For a comprehensive analysis of RNW's financial health and growth prospects, investors can refer to the detailed Pro Research Report. Meanwhile, ReNew Energy Global reported robust growth in the first quarter of fiscal 2027, with total income of INR 47.9 billion and revenue of INR 44.6 billion.

The adjusted EBITDA increased by 12% year-over-year to INR 30.4 billion, while profit after tax rose by 16% to INR 6 billion. Despite these impressive results, the company still faces challenges from grid bottlenecks and curtailment in its solar business. These recent developments underscore RNW's strong operating trends while navigating execution and policy risks, as noted by analysts who view the earnings report as indicative of the company's continued growth.