Adani Energy Solutions’ Transmission Ebitda To Double In Three Years, Says Elara, Initiating ‘Buy’ Rating
Elara Capital has initiated coverage on Adani Energy Solutions with a "buy" rating, highlighting the company's strong growth prospects in its transmission, distribution, and smart meters businesses. The brokerage has set a target price of Rs 930 for the stock.
Adani Energy Solutions is expected to see its transmission Ebitda double to Rs 7,600 crore by FY27, driven by India's ambitious renewable energy targets. AESL currently has a project pipeline worth Rs 54,800 crore, with additional projects worth Rs 38,800 crore secured following its QIP in FY25.
The Government of India's goal to achieve 500GW of renewable energy (RE) capacity needs a robust transmission network for green power evacuation, driving a surge in bidding activity for transmission projects. Industry estimates a near-term bidding value at Rs 84,000 crore, with AESL likely to secure a 20-25% market share, said Elara Capital
In the distribution sector, demand in the Mundra SEZ is projected to surge from 50MW to 5GW, increasing the regulated asset base to Rs 1,500-2,000 crore. The Mumbai operations are set to receive annual capital expenditure of Rs 1,200-1,500 crore, boosting regulated equity to Rs 6,000 crore by FY27.
AESL also leads the smart meters market with a 17% share, maintaining an impressive Ebitda margin of 85%. The company's robust growth outlook and strategic positioning in key sectors underpin Elara Capital's positive rating.
AESL operates two distribution companies, one at Mumbai and the other at Mundra.
-
Talking Points This Week: Leadership Shock At Nvidia, Earnings Strength, And The Fog Over Hormuz
The Anthropic IPO pricing and first trading day, Nvidia's upcoming earnings, and any fresh signals from Iran will set the tone for the following week.
-
Signature Play: The Classic Cocktail Is Dead. Or Is It?
Classic cocktails are disappearing from India's cocktail menus. But they're still being ordered, taught to bartenders and borrowed from. So, who's really having the last drink?
-
A New Samvat Wishlist: Inclusive Prosperity And Human Development
India has strengthened its economic foundations through infrastructure, digital access and enterprise. Its next growth chapter must deepen productivity, create better livelihoods and widen participation in prosperity.
-
Love, Sex Aur Dhokha: The Audacious Plot To Spy On Jensen Huang
A Taipei dinner, a Singapore chip buyer and a suspected Chinese asset: inside the alleged spy operation that got close to NVIDIA's Jensen Huang.
-
Ten Things I Learnt This Samvat
Patience can be a trap. Cheap stocks can stay cheap. Leverage can wipe you out. What did Samvat 2082 teach us? Niraj Shah writes on 10 lessons from the year gone by.
-
Talking Points This Week: Tech Nerves, FII Buying, And A Faraway Banking Shock
The global markets are not shining this Diwali. The exception in the large markets is, India.
-
Midterm Rally Lasted A Day. The Hard Reality Of A Divided US May Last Two Years | Opinion
Between a contested AI boom, a debt ceiling that arrives in 2027 and a president with every incentive to act alone, the next two years may prove more volatile than the first day's rally suggests.
-
Blue Wave Will Derail the AI Trade but Won't Dismantle the AI Era | Unhedged Position
The Democrats' sweep of the US Congress will see politics collide with economic forces both over the long and short term.
-
It's Time To Take The GST Council's Bet On Trust Global
Payment records can prove India's services exports, and clear, proportionate rules can bring foreign digital sellers into the tax net.
-
Opinion | India at 38: From Innovation Overperformer to Innovation Powerhouse
India now has 453 VC-backed deep science startups, 18 of them late-stage, after 117 percent growth since 2020. Laurus Labs, at USD 9.3 billion, is the most valuable deep science company in any middle-income economy outside China.
