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ICICI Securities Report

ICICI Securities remains positive on Adani Green Energy Ltd., reiterating its Buy rating while revising the target price to Rs 1,140 from Rs 1,290, factoring in near‑term softness in power generation.

The brokerage highlighted that Adani Green continues to maintain the strongest execution track record in India's renewable energy sector, with an operational capacity of 17.2GW and the unique ability to develop up to 30GW at a single location in Khavda.

This scale, supported by access to capital and large‑format renewable resources, keeps Adani Green significantly ahead of peers.

ICICI Securities noted that Adani Green's capex‑to‑Ebitda ratio of ~7.5x reflects high capital efficiency, reinforcing its competitive advantage in developing utility‑scale solar and wind assets.

To incorporate muted generation trends, the brokerage has trimmed its valuation multiple to 15x (from 16x). It believes this multiple adequately captures Adani Green's key strengths:

1. a proven execution track record,
2. superior capital efficiency,
3. strong funding access, and
4. high‑quality renewable resources across solar and wind.

Despite moderating the valuation, ICICI Securities said Adani Green remains well‑positioned for long‑term growth given its scale, balance sheet strength, and visibility on future capacity additions.

 Key risks:

• Delay in commissioning of under-development capacity; and
• lowerthan-estimated generation.

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