Adani Green Energy Gets 'Overweight' As Cantor Initiates Coverage On Growth Optimism
Adani Green Energy trades at 15.6 times financial year 2026E EV/Ebitda, a slight discount to its peers, with much higher growth potential, according to the note.
Cantor Fitzgerald Research has initiated coverage on Adani Green Energy Ltd. with an 'overweight' rating and a target price of Rs 1,222 on the back of the company's growth plans.
Adani Green Energy is India’s largest renewable energy company, with a portfolio of 11.6 GW across solar, wind, and hybrid power plants, the brokerage noted. As India focuses on reducing carbon emissions and reaching net-zero, AGEL’s growth in the renewable energy sector makes it an attractive investment, according to the research firm.
Adani Green Energy trades at 15.6 times financial year 2026E EV/Ebitda, a slight discount to its peers, with much higher growth potential, according to the note. The brokerage further said that from financial year 2019 to financial year 2024, the company's revenue and Ebitda grew at a CAGR of 40.9% and 36.8%, respectively.
Moving forward, Cantor forecasts revenue and Ebtida to grow at a CAGR of 21.3% and 25.9% from financial year 2025E to financial year 2030E. By fiscal 2030, AGEL’s Ebitda is expected to reach $3.3 billion, compared to its current enterprise value of around $24 billion.
AGEL is still in the early stages of its growth, said Cantor. The company aims to expand its operational capacity to over 50 GW by 2030, a 4 times increase from its current size. This growth is expected to accelerate in the next five years.
A key growth driver is AGEL’s Khavda renewable energy site in Gujarat, which will be the largest in the world, said the note. The site will expand from 2.4 GW to 30 GW by fiscal 2030, potentially accounting for 6.6% of India’s total energy generation. This could contribute over 10% of India’s energy generation by 2030.
In the first half of financial year 2025, Adani Green Energy’s net debt was $6.9 billion, with an improving debt-to-Ebitda ratio of 7.14 times. This gives AGEL flexibility to fund further expansion through organic cash generation, reducing future reliance on debt.
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