Adani Enterprises Ltd. is poised to become the top Nifty stock in 2025, according to market watchers. Shares of Adani Group flagship have been recovering steadily from their November lows.
The company saw as much as 25% gains this year before allegations by the US authorities pulled the stock down in November. Adani Group denied any wrongdoings strongly and the stock has since recovered steadily.
Since its high this year, the stock has fallen by 35% to trade in the so-called 'bearish zone'. However, the fundamental growth outlook of the conglomerate's flagship has made analysts bullish.
Going From Strength To Strength
Three analysts tracking the Adani Enterprises have a 'buy' rating on the stock, according to Bloomberg data. The average of 12-month analyst price targets implies a potential upside of 70%, the highest for any Nifty stock.
The stock has gained nearly 23% from the recent lows and was up over 6.5% on Monday, compared to a 0.70% advance in the benchmark NSE Nifty 50 index, as of 2:02 p.m.
According to technical analysts, shares of the Adani Group company face strong resistance at the Rs 2,555 mark and have switched momentum to the positive side in a lower timeframe. A close above the immediate resistance can push the stock to the Rs 2,660 level.
Shares currently have crossed and traded above the 21-day exponential moving average and 14-day simple moving average on Monday. The stock immediately currently faces support at Rs 2,330 mark.
Bullish Outlook
Ventura Securities Ltd. set a bullish target of Rs 3,801 for Adani Enterprises stock, seeing a potential upside of 57.8% over the next 24 months.
The target price of Rs 3,801 set by Ventura under a base case scenario offers significant growth potential for investors. In a bull case scenario, the target price rises to Rs 5,748, which would mark an upside of 138.6%, the brokerage said in its note.
Under the bull case scenario, "we have assumed revenue of Rs 1,66,615 crore (FY24-27E CAGR of 20%) and an EBITDA margin of 20% at an EV/EBITDA of 23.4X, which will result in a bull case price target of Rs 5,748," it stated.
Adani Enterprises, one of India's largest business incubators, has a diversified business model that has fostered key sectoral players like Adani Ports & SEZ Ltd., Adani Green Energy Ltd., and Adani Wilmar Ltd., among others.
Adani Enterprises consolidated net profit for the quarter ended Sept. 30 rose nearly 500% year-on-year led by strong growth in capacity addition and asset utilisation by the green energy business and the airports division.
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