As of June 2024, the Adani Group’s net worth stands at around $111.1 billion, and plans of US$ 90 billion capex over the next ten years, according to a report by the investment bank and financial services firm Jefferies. The brokerage firm outlines a promising future trajectory for the Group.
In 2023-24, the Adani Group witnessed a 40 percent year-on-year growth in total group EBITDA, reaching Rs. 66,000 crore.
According to the brokerage firm Jefferies, Adani Enterprises is expanding its captive manufacturing capacity in preparation for commencing Green Hydrogen production by 2026-27. The commissioning of Navi Mumbai Airport is anticipated by Q4 FY24-25, and there is notable progress in data centre projects.
The management of Adani Cement, as per the report, continues to forecast a doubling of cement capacity and aims to elevate unit EBITDA to an industry-leading Rs. 1450-1500 per tonne by 2027-28.
Adani Ports recently published its 5-year business roadmap, targeting an 18 percent CAGR in EBITDA from fiscal years 2024 to 2029.
The report highlights the Adani Ports EBITDA to rise by 16 percent CAGR driven by expansion and ramp-up efforts, with the company aiming to achieve a cargo volume of 1 billion tonnes by 2030, representing a 15 percent CAGR.
Here are the four Adani Group companies that received a ‘buy’ recommendation from the brokerage firm Jefferies, with a potential upside of up to 35 percent.
Ambuja Cements Limited
Ambuja Cements Limited is a major cement-producing company in India and its principal activity is to manufacture and market cement and clinker for both domestic and export markets.
Share price of one of India’s leading cement companies and a member of the diversified Adani Group surged by 1.2 percent on BSE to Rs. 668.25 in the morning trading session of Friday, as against its previous closing price of Rs. 660.55, with a market cap of Rs. 1.63 lakh crore.
The global brokerage firm Jefferies has given a ‘buy’ recommendation on Ambuja Cements with a target price of Rs. 735, with a potential upside of 11% from its current trading price of Rs. 664.35.
In terms of financial, the revenue from operations stood at Rs. 8,894 crore in Q4 FY23-24, rising by 3.05 percent YoY from Rs. 7,966 crore in Q4
FY22-23, while the after-tax profit grew by nearly 100 percent to Rs. 1,525.8 crore from Rs. 763.3 crore, during the same period.
The stock has delivered positive returns of nearly 52 percent in one year, and around 6 percent returns in the last one month.
Adani Ports and Special Economic Zone Limited
Adani Ports & Special Economic Zone Ltd. is primarily engaged in developing, operating and maintaining the ports services, ports-related infrastructure development activities and development of infrastructure at the contiguous Special Economic Zone (SEZ) at Mundra.
Share price of India’s largest port developer and operator opened at Rs. 1,484.2 on Friday, with a market cap of Rs. 3.16 lakh crore.
The global brokerage firm Jefferies has given a ‘buy’ recommendation on Adani Ports with a target price of Rs. 1,640, with a potential upside of nearly 12% from its current trading price of Rs. 1,467.9.
In terms of financial, the revenue from operations stood at Rs. 6,896.5 crore in Q4 FY23-24, rising by 19 percent YoY from Rs. 5,796.85 crore in Q4 FY22-23, while the after-tax profit grew by 76.6 percent to Rs. 2,014.7 crore from Rs. 1,141 crore, during the same period.
The stock has delivered positive returns of nearly 94 percent in one year, and around 40.2 percent returns year-to-date.
Adani Enterprises Limited
Adani Enterprises Limited (AEL) is a flagship company of the Adani Group with operations across multiple industries: airports, data centres, defence & aerospace, edible oil & foods, agro, integrated resources management, mining services, road, metro & rail, solar manufacturing and water.
Share price of one of India’s largest business organisations surged by 0.85 percent on BSE to Rs. 3,202 in the morning trading session of Friday, as against its previous closing price of Rs. 3,174.85, with a market cap of Rs. 3.64 lakh crore.
The global brokerage firm Jefferies has given a ‘buy’ recommendation on Adani Enterprises with a target price of Rs. 3,800, with a potential upside of around 19% from its current trading price of Rs. 3,199.3.
AEL reported a decline in consolidated revenue from operations by 6.9 percent YoY from Rs. 31,346 crore in Q4 FY22-23 to Rs. 29,180 crore Q4 FY23-24, as well as a fall in the net profit by 63.2 percent from Rs. 722.65 crore to Rs. 265.6 crore, during the same period.
The stock has delivered positive returns of nearly 33.2 percent in one year, and 9.7 percent returns year-to-date.
Adani Energy Solutions Limited
Adani Energy Solutions Limited (AESL) is a multidimensional organisation with a presence in various facets of the energy domain, namely power transmission, distribution, smart metering, and cooling solutions.
Share price of the largest private transmission and distribution company in India surged by 0.62 percent on BSE to Rs. 1,018.4 in the morning trading session of Friday, as against its previous closing price of Rs. 1,012.05, with a market cap of Rs. 1.12 lakh crore.
The global brokerage firm Jefferies has given a ‘buy’ recommendation on Adani Energy with a target price of Rs. 1,365, with a potential upside of nearly 35% from its current trading price of Rs. 1,012.45.
In terms of financials, the company reported a growth in revenue from operations by 48.04 percent YoY from Rs. 3,179.3 crore in Q4 FY23-24 to Rs. 4,706.85 crore in Q4 FY23-24, while its after-tax profit fell by 13.3 percent from Rs. 440 crore to Rs. 381.3 crore, during the same period.
The stock has delivered positive returns of around 23.7 percent in one year, but around 4 percent of negative returns year-to-date.
Written by Shivani Singh
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