Adani Enterprises shares will be in focus after global brokerage Jefferies and domestic brokerage Motilal Oswal Securities maintained their bullish views on the Adani Group flagship following a strong September quarter performance, driven by growth in airports, copper and mining businesses.
Jefferies maintained its ‘Buy' rating on Adani Enterprises with a target price of Rs 3,830, implying an upside potential of around 54% from its Wednesday's closing price. The brokerage raised its FY27 EBITDA estimates by around 4%, citing strength in the new-age copper business, while making marginal adjustments to its FY28-29 estimates.
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Motilal Oswal Securities also maintained a ‘Buy' rating on the stock, with a target price of Rs 3,350.
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Adani Enterprises reported strong operating performance in the September quarter, with Jefferies highlighting a 62% year-on-year (YoY) increase in EBITDA to Rs 6,320 crore, surpassing its estimate of Rs 5,600 crore.
The EBITDA beat was driven by airports, copper and other businesses, contributing approximately Rs 150 crore, Rs 430 crore and Rs 150 crore, respectively, above the brokerage's estimates.
According to Jefferies, airport EBITDA grew 55% YoY despite a 6% decline in passenger traffic, supported by strong non-aeronautical performance. The copper business also benefited from higher capacity utilisation and improved by-product pricing.
Motilal Oswal highlighted a 75% year-on-year surge in revenue and a 67% increase in EBITDA. Adjusted profit after tax jumped nearly fourfold to Rs 1,500 crore, according to the brokerage.
Data Centres, Airports Key Growth Drivers
Jefferies believes Adani Enterprises is well-positioned to benefit from India's underpenetrated aviation market, the expansion of the digital economy and import substitution opportunities in businesses such as copper and PVC.
The brokerage noted that Adani Enterprises' data centre business continues to scale up, with tied-up capacity exceeding 1.2 GW, although operational capacity stood at 95 MW.
Jefferies estimates EBITDA and profit after tax compound annual growth rates of 23% and 48%, respectively, between FY26 and FY31 in its base-case scenario. It sees airports contributing around 50% of the company's target enterprise value.
The brokerage's upside scenario values Adani Enterprises at Rs 4,200 per share, assuming faster airport and data centre expansion.
Motilal Oswal also identified copper, airports, mining and data centre capacity expansion as key growth catalysts for the company.
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