Morgan Stanley stake and a 75% upside call: Why this newly listed stock is drawing attention

Synopsis

Pace Digitek shares gained attention after Morgan Stanley bought 12 lakh shares and Arihant Capital initiated coverage with a ‘Buy’ rating, citing strong growth potential in India’s renewable and telecom infrastructure sectors.

Pace Digitek, a recently listed renewable and telecom infrastructure company, is in the spotlight after global investment giant Morgan Stanley picked up nearly 12 lakh shares in the open market. The move has boosted investor sentiment in a counter that debuted modestly on the bourses — listing at around a 4% premium to its issue price.

Adding to the optimism, Arihant Capital has initiated coverage on Pace Digitek with a Buy rating and a target price of Rs 385, implying a 75% upside from current levels of around Rs 225.

The brokerage believes the company is well-positioned to capture the next wave of India’s energy transition, particularly in Battery Energy Storage Systems (BESS) and telecom infrastructure.

According to Arihant, the company’s integration of manufacturing, EPC (engineering, procurement, and construction), and BOO (build-own-operate) models gives it a strong execution edge.

Pace has already commissioned a 5 GWh BESS facility in Bangalore with an estimated annual revenue potential of Rs 32 billion at full capacity. Its project pipeline includes large-scale battery and hybrid energy projects, with 2.8 GWh of orders already secured and execution visibility through FY26.

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The report adds that India’s push toward 500 GW of renewable energy by 2030 and strong policy incentives for energy storage — including SECI tenders and viability gap funding — are major tailwinds for companies like Pace Digitek. With over 230 GWh of BESS capacity expected by 2032, the firm’s early-mover advantage could translate into significant market share gains.

"Pace’s localized production, proven execution, and early readiness for large-scale energy projects give it a unique advantage in the domestic BESS market," the note stated.

The company, which also has a legacy presence in telecom tower manufacturing and power electronics, has seen its business diversify across energy, ICT, and infrastructure services. With the government’s focus on green power and electrification, analysts expect sustained earnings growth and margin improvement in the coming years.

Between a high-profile foreign investor entry and upbeat domestic brokerage coverage, Pace Digitek’s story could shift gears, from a low-key debutant to one of the most closely tracked post-listing plays in the renewables and energy storage space.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)

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