Adani Group stock, the largest player in private transmission and the second largest player in the smart meter business, has been assigned a Buy call from one of the major brokerage houses with an upward potential of nearly 40% from Tuesday’s trading price.
Share Price Movement:
With a market capitalization of Rs. 1,11,959.54 crores, Adani Energy Solutions Limited shares opened at Rs 934.95 apiece on Tuesday’s early trading session.
Brokerage Recommendation:
ICICI Securities, a leading brokerage firm in India’s securities market, issued a Buy recommendation for Adani Energy Solutions Limited, with a target price of Rs. 1,318. This represents an approximate 40% upside compared to Tuesday’s opening price of Rs. 934.95.
The research report from ICICI Securities highlights several factors contributing to the positive outlook for Adani Energy Solutions Limited.
The company is one of the largest private players in the transmission sector, with extensive experience in developing and operating transmission assets valued at Rs. 2,60,000 crores (project cost). It has expanded into the distribution business by acquiring the existing operations of Mumbai DISCOM.
Additionally, the company has recently secured new contracts in the smart meter segment, marking its entry into the smart metering business. It has also obtained trading licenses and aims to position itself as a comprehensive power solutions provider, catering to commercial and industrial customers.
ICICI Securities estimates an company’s EBITDA to grow at 32% CAGR between FY24-FY27 to Rs. 13,200 from Rs. 5,800 and expects the strong increase will be backed by winnings of Rs. 3,000 crore from new transmission bids, Rs. 4,000 crore from smart meters, and Rs. 500 crore from distribution areas.
Financials:
For Q1FY25 the company reported a net loss of Rs. 1,190.66 crores compared to a net profit of Rs. 181.98 crores in Q1FY24, while revenue from operations marked an increase of 46.78% to Rs. 5,378.55 crores from Rs. 3,663.9 crores in comparison to the same period.
About the company:
Adani Green Energy Limited is among the largest renewable energy businesses in India with a current project portfolio of 20,434 MW. The Company has expanded its presence across 11 Indian States with the help of long-term Power Purchase Agreements (PPAs) with Central and State Government entities. It has 5,410 MW operational projects and 15,024 MW under construction.
Written By: Joseph Pv
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