AGEL and ACC Ltd. are the two Adani Group firms that have received purchase calls from leading Indian brokerages. Ventura Securities and ICICI Direct Research have set target prices for Adani Green Energy. And ACC, in the next 24 and 12 months.
Over a two-year timeframe, Adani Energy Solutions Ltd previously Adani Transmission, has a substantial approximately sixty percent upside potential. It is according to projections of domestic brokerage company Ventura Securities. The brokerage’s positive outlook is based on its evaluation of India’s electricity transmission. And distribution (T&D) industry, which it considers to see growth.
A bit about Adani Power : Adani Group
Adani Power, a subsidiary of Adani Group, is an Indian multinational power. It is an energy company with a 15,250 MW capacity and operates a 40 MW mega solar plant in Gujarat. Adani Godda Power is implementing a 1,600 MW plant in Jharkhand. The company has signed long-term power purchase agreements with various Indian governments.
Target Price for Adani Green Energy Shares
Adani Green Energy Limited (AGEL) had a notable decrease in its stock price of around 77% following the Hindenburg scandal. Since then, though, the stock has made a significant comeback. Thus, rising 288% to a CMP of INR 1,890 a share. Prominent investors like GQG and IHC have increased their interests in the firm. Thus, demonstrating their faith despite the sharp decrease. Although the Ventura Securities stated, “Promoters are strengthening their commitment through injecting INR 9,350 crore.
Furthermore a report published on April 4 stated that INR 2,338 crore has infused. Through the issuance of warrants at INR 1,481 per share.
The largest renewable energy business in India, AGEL, increased its operating capacity. Which was to 10,934 MW in FY24 adding 2,848 MW of new capacity. With Khavda contributing 30 GW, the business intends to boost its capacity. And that can rise up to 20 GW till FY26 and 45 GW in 2030. This is a predicted 28% CAGR for AGEL’s capacity increase between FY23 and FY30.
In FY27, the brokerage expects EBITDA to expand at a 26.5% CAGR to INR 1,8358 cr, with 92% margins. And it is anticipated that net earnings will increase at a CAGR of 44.8% and 17.8% margins. And that would start from INR 4,262 cr. Also with a BUY rating and a price target of INR 2830, they begin covering AGEL. Thus, marking a 49.7% increase from the CMP of INR 1890. One of the main hazards is a severe downturn in the world economy.
The target for ACC Share Price
The business expanded at Amethi and Asian Concretes, bringing its cement capacity to 38.6 mtpa as of December 2023. Increases at Sindri and Salai Banwa should bring the capacity up to 42.6 mtpa amid FY26E. Also, the company’s volumes are anticipated to rise to 40.8 mtpa in FY26E at a 10% CAGR. that propelled through recent capacity increases, impending expansions, and rising demand.
The start of clinker at Amethi would increase cement production even further.
ICICI Direct predicts that ACC will benefit from margin expansion, operational efficiencies, and positive operating leverage. Although the company’s waste heat recovery power share will increase to 25% via FY25E. The parent company’s other units and businesses will further improve efficiencies in raw material, power, fuel, and freight costs. Meanwhile the company’s cement realization is expect to rise due to increased demand and premium product share. The company’s EBITDA/ton is estimating to improve to Rs 950/ton till FY26E.
Adani Group
The Adani Group is a global company based in Ahmedabad, India. Gautam Adani established it in 1988 as a commodities trading company. The Group’s operations encompass mining, natural gas, food, armaments, infrastructure, maritime and airport management, etc. Coal-related enterprises account for more than 60% of company income.
Adani surpassed Tata Group to become the biggest conglomerate in India at its height. Following claims of fraud and market manipulation by short-seller company Hindenburg Research, its value dropped by about $104 billion. Although the allegations of stock manipulation, accounting problems, cronyism, the Adani Group has also drawn attention to other controversies.
