Shares of Adani Energy Solutions Ltd ended the trade at Rs 803, up 2%. Global brokerage firm Jefferies believes that further rise can be seen in this stock in the coming days. Jefferies maintains a ‘buy’ rating on Adani Energy Solutions and forecasts an upside of over 62% from a 12-month outlook. According to the brokerage, Adani Energy Solutions has a favorable risk-to-rewards ratio, with an upside ratio of 6.58:1.
stock market situation
Shares of Adani Energy Solutions were trading at Rs 805.65 per share on NSE, registering a rise of 2%. However, the stock has still not recovered from the Hindenburg shock and is trading at a discount of over 53% from its pre-Hindenburg level (Rs 2,784).
Target price and growth prospects
Jefferies has set a target price of Rs 1,300 for Adani Energy Solutions. The estimate is based on 16% revenue and 31% EBITDA compound annual growth rate (CAGR) between FY24 to FY27. Along with this, the transmission and bulk power transmission (TBCB) segment is expected to gain 24% market share. The company plans to commercialize transmission projects worth over Rs 274 billion in the coming years. The target price of Rs 1,300 is based on 15x EV/EBITDA multiple for FY27.
company identity
Adani Energy Solutions is headquartered in Ahmedabad, Gujarat. It is one of India’s largest private sector power transmission companies, with power transmission length of 14,000+ kilometers and transformation capacity of 23,000+ MW, and is active in all regions of the country.
