Adani Group companies are in focus after global brokerage firm Jefferies recommended a few of the Group’s stocks, highlighting potential upside of up to 46 percent. The brokerage’s recommendations are supported by factors such as business growth, earnings prospects, sector opportunities, and company-specific developments that could drive further re-rating.
Jefferies covers Adani Green Energy, Adani Ports and Special Economic Zone, Adani Energy Solutions, and Adani Power. The brokerage has highlighted its views on these companies, with potential upside of up to 46 percent.
Adani Green Energy Ltd
Adani Green Energy Ltd is a renewable energy company involved in the development, ownership, and operation of utility-scale renewable energy projects. The company mainly deals with solar and wind energy projects, and it works towards increasing energy generation capacity in India.
The shares are in the spotlight after Global brokerage firm Jefferies maintained a “BUY” rating on the stock with a target price of Rs. 1,695. This target price implies an upside potential of around 29.0 percent from the previous close of Rs. 1,313.70.
Reason for the Target
Jefferies maintains a Buy rating on Adani Green Energy with a target price of Rs 1,695, supported by management’s confidence in adding 5 GW of capacity in FY27E. The planned capacity addition indicates continued expansion and remains a key factor supporting the brokerage’s positive view.
The company is matching its timing for adding capacity to the availability of transmission infrastructure in order to avoid any curtailment issues. This strategy is being adopted in an effort to improve coordination between capacity additions and transmission infrastructure development by Adani Green Energy.
The expansion plans for BESS capacity from the existing 3.6 GWh to above 10 GWh by FY27E are on course for Adani Green Energy. Although the tie-ups for capacity with Adani Energy Solutions could limit the merchant margins, it will help ensure earnings predictability, supporting Jefferies’ Buy rating.
Adani Ports and Special Economic Zone Ltd
Adani Ports and Special Economic Zone Ltd is India’s largest commercial ports operator, having diverse ports and terminals. The organization offers a range of services such as port, logistics, and others related to cargo handling and transportation through the important trade routes.
The shares are in the spotlight after Global brokerage firm Jefferies maintained a “BUY” rating on the stock with a target price of Rs. 2,160. This target price implies an upside potential of around 19.9 percent from the previous close of Rs. 1,801.00.
Reason for the Target
Jefferies maintains a Buy rating on Adani Ports with a target price of Rs 2,160, supported by the company’s confidence in achieving its 1 billion tonnes cargo target by 2030. This growth is expected to be driven by organic expansion at domestic ports and the ramp-up of its international port operations.
Additionally, the firm is working towards combining technology with its robust port facilities. Meanwhile, the logistics business of the firm will serve as a growth catalyst for the ports business of the firm. Such endeavors can help achieve future expansion in the firm’s integrated port and logistics business.
Adani Ports’ healthy balance sheet, and even the possibility of being net cash positive by FY31, leaves enough room for additional growth capex. In addition, Jefferies pointed to capital allocation as a major focus area, given the flexibility of the company’s financial position.
Adani Energy Solutions Ltd
Adani Energy Solutions Ltd is an integrated energy infrastructure company engaged in power transmission, distribution and smart metering. The company also operates in cooling solutions and energy solutions, with its businesses focused on strengthening electricity infrastructure and supporting India’s evolving energy requirements.
The shares are in the spotlight after Global brokerage firm Jefferies maintained a “BUY” rating on the stock with a target price of Rs. 2,060. This target price implies an upside potential of around 45.5 percent from the previous close of Rs. 1,415.00.
Reason for the Target
Jefferies gives a “Buy” recommendation to Adani Energy Solutions at a target price of Rs 2,060, considering the optimistic sentiment held by the management regarding their trading division. The management is positive about the potential of the division and its contribution to future growth.
The outlook for India’s transmission is strong, thereby underpinning the company’s growth potential in the near to medium term. Management has also reaffirmed its guidance of Rs 20,000-25,000 crore as its capital expenditure run rate per annum in the coming years.
The smart metering and trading operations are developing nicely and are set to become important future growth drivers. The good transmission outlook, planned capital expenditure, and the improving performance of these operations will help support the bullish view of Jefferies as well as its target price of Rs 2,060.
Adani Power Ltd
Adani Power Ltd is one of the major electricity generation companies in India, involved in the production of electricity. Adani runs several thermal power stations in different states of India, concentrating on catering to the rising demand for electricity in India.
The shares are in the spotlight after Global brokerage firm Jefferies maintained a “BUY” rating on the stock with a target price of Rs. 270. This target price implies an upside potential of around 29.1 percent from the previous close of Rs. 209.00.
Reason for the Target
Jefferies gives a “Buy” recommendation for Adani Power with a price target of Rs 270, backed by the firm’s strategy of capacity expansion by 2.5 times to 45 GW by FY32. Adani Power’s expansion strategies suggest ample scope for growth, whereas the rise in capacity under the PPA can add more visibility to its revenue streams.
For the upcoming capacity of 23.7 GW, 56% of the capacity is already committed through long-term PPAs, with the company’s target being that all of this capacity should be contracted through long-term PPAs. The rationale behind this strategy is the fact that it will help reduce the risk level even further.
Adani Power is expected to generate 22% EBITDA CAGR during FY26-30E while also making its free cash flow positive by FY30E against the current negative figure. This expected earnings and free cash flow performance forms the basis for the stock rating of the company at Rs 270.