- Adani Energy shares rose 1.87% to a 52-week high of Rs 1,608.80 on Friday
- Jefferies maintained a Buy rating with a price target of Rs 1,665 for the stock
- The company executes Rs 71,800 crore in transmission projects with a Rs 1.5 lakh crore pipeline
Shares of Adani Energy Solutions Ltd. rose as much as 1.87% on Friday to hit a fresh 52-week high of Rs 1,608.80 after brokerage Jefferies reiterated its bullish stance on the stock, citing strong visibility across its transmission and smart metering businesses. The brokerage maintained its ‘Buy' rating and a price target of Rs 1,665, implying further upside from current levels.
Jefferies said Adani Energy remains uniquely positioned as India's only listed private-sector pure-play transmission and distribution company, with management highlighting a robust outlook for the country's power transmission sector. The company is currently executing transmission projects worth Rs 71,800 crore, while the near-term bidding pipeline has expanded to Rs 1.5 lakh crore from Rs 5,400 crore at the end of FY25.
A key growth driver remains the company's smart metering business. Adani Energy had installed 1.14 crore smart meters by the end of FY26, compared with 31 lakh a year earlier. Jefferies noted that nearly 10 crore smart meter tenders are yet to be awarded under the government's broader rollout programme, leaving a sizeable opportunity for future wins.
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Better Than Power Grid?
The brokerage expects Adani Energy's EBITDA to grow at a 27% compound annual growth rate (CAGR) between FY26 and FY30, more than double the pace expected for Power Grid Corporation. Profit growth is projected at 19% CAGR during the same period, supported by execution of transmission projects and rising smart meter installations.
Jefferies also pointed to emerging opportunities in cooling solutions and commercial-and-industrial energy services, particularly as data centre demand accelerates in India. While these businesses remain at an early stage, management believes they could become meaningful contributors over time.
The brokerage expects return on equity to improve steadily over the next few years, aided by lower financing costs, commissioning of new assets and the absence of fresh equity dilution. It estimates ROE could move closer to 13% by FY30.
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