Shares of Adani Group companies are back in the spotlight after Emkay Global projected a potential upside of 60 percent, citing strong growth prospects and improving fundamentals. The bullish outlook has sparked fresh interest among investors.
Price Movement
During Wednesday’s trading session, shares of Adani Green Energy Ltd closed at Rs.900.35 apiece, falling 2.34 percent from its previous closing price of Rs.921.90 apiece. Over the past five years, the stock has delivered over 320 percent returns.
Brokerage Overview
On Wednesday, April 30, brokerage firm Emkay Global Financial Services Ltd issued a buy rating on Adani Green Energy Ltd, setting a target price of Rs.1,500 per share. This suggests an upside potential of nearly 67 percent from current levels. The upgrade comes after the company reported strong quarterly results and unveiled plans for significant capacity expansion, indicating solid growth prospects in the renewable energy sector. Emkay believes these developments enhance the company’s long-term investment appeal.
Financial Overview
According to its recent financial updates, Adani Green Energy reported a consolidated revenue of Rs.3,073 crores in Q4 FY25, up 21.6 percent from Rs.2,527 crores in Q4 FY24 and 31.3 percent higher than Rs.2,340 crores in Q3 FY25.
Net profit rose 23.5 percent year-on-year to Rs.383 crores in Q4 FY25, compared to Rs.310 crores in Q4 FY24. However, on a sequential basis, it declined by 19.2 percent from Rs.474 crores in Q3 FY25.
Capex Plans
Adani Green Energy has announced a robust capital expenditure plan of USD 3.64 billion (approximately Rs.31,000 crores) for the current fiscal year, aiming to add 5 gigawatts (GW) of clean energy capacity. This target marks a nearly 50 percent increase compared to the capacity added in the previous fiscal year, signaling the company’s aggressive expansion in India’s renewable energy sector.
In FY25, Adani Green successfully commissioned 3.3 GW of greenfield capacity, contributing 16 percent of India’s utility-scale solar and 14 percent of wind energy additions. Notable installations include 1,460 MW of solar and 599 MW of wind capacity in Khavda, Gujarat; 1,000 MW of solar in Rajasthan; and 250 MW in Andhra Pradesh, reinforcing its leading role in India’s clean energy drive.
Ratio Analysis
The company has a Return on Capital Employed (ROCE) of 8.12 percent and a Return on Equity (ROE) of 14.26 percent. Its Price-to-Earnings (P/E) ratio stands at 84.35, higher than the industry average of 44.53. Furthermore, the company maintains a solid current ratio of 1.43, a debt-to-equity ratio of 6.59, and an Earnings Per Share (EPS) of Rs.10.93.
Written by – Siddesh S Raskar
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