Adani Green Energy Ltd. has received its third bullish coverage this month, with Morgan Stanley initiating coverage on the stock with an Overweight rating and a target price of Rs 1,525. The target implies a 17.1% upside from the Aug. 20 closing price of Rs 1,301.80.
The Morgan Stanley initiation follows positive calls from Axis Capital and Elara Capital earlier this month, according to Bloomberg data.
Morgan Stanley said Adani Green's scale across clean energy technologies, improving portfolio quality and execution support its growth outlook. The brokerage expects the company to deliver an 18% revenue CAGR between FY26 and FY31, while return on capital employed is estimated at 14% over the same period.
Capacity Growth
Morgan Stanley said execution at scale is becoming increasingly important as India's renewable energy market expands. Adani Green has more than doubled its capacity over the past two years, with multi-GW capacity additions broadly in line with its guidance.
The brokerage expects contracted renewable energy capacity to reach around 38 GW by FY31 from 20.1 GW currently. Contracted solar capacity is expected to reach 49 GW.
It said centralised project management, integrated procurement and resource-rich sites have helped Adani Green maintain core renewable energy EBITDA margins above 90%.
AI Demand
Morgan Stanley also identified rising power demand from AI-driven data centres as an opportunity for Adani Green. It estimates India's data centre capacity could reach around 10.5 GW by FY31, increasing demand for reliable and dispatchable clean power.
The brokerage also expects Adani Green to benefit from the Adani Enterprises ecosystem's planned 3 GW data centre capacity by 2030, which could create an additional opportunity for the renewable energy company.
Bloomberg data shows Adani Green has 10 Buy ratings among the analysts tracked. The 12-month consensus target price stands at Rs 1,570.45, implying a 20.6% potential upside from the Aug. 20 close.
Axis Capital has a Buy rating with a target price of Rs 1,704, while Elara Capital has an Accumulate rating with a Rs 1,502 target, according to Bloomberg data.
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