NDTV Profit's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer NDTV Profit's subscribers an opportunity to expand their understanding of companies, sectors and the economy.
ICICI Securities Report
In this report the brokerage ICICI Securities highlighted that Adani Green Energy Ltd. has the strongest track record of developing renewables portfolio. It also has the resources to develop up to 30GW at a single location in Khavda. It has been miles ahead in the competition. It has a capex to Ebitda ratio of close to ~7.5x, indicating high capital efficiency.
The brokerage has increased its multiple to 16x from 15x previously, factoring in improved power purchase agreement mix going ahead and improved realization for its merchant capacity driven by increased power demand. Overall, the multiple of 16x bakes in –
- Adani Green Energy's strong track record of execution, with 19.3GW of operational capacity;
- superior capital efficiency;
- access to funds; and
- quality solar and wind resources on a large scale.
The stock has seen a sharp run-up of 45% in last one month. It is trading at 14x locked in Ebitda. ICICI Securities downgrades to Add with a revised target price of Rs 1,315 (earlier Rs 1,140). The locked-in Ebitda takes into account the complete pipeline of capacity, which we estimate at ~38GW.
The brokerage has excluded PSP projects, except for Chitravathi PSP (500MW) which is expected to get commissioned in FY27.
The brokerage also bakes in certain assumptions with regards to merchant tariff to arrive at locked-in Ebitda.
Key risks:
- Delay in commissioning of under-development capacity; and
- lower than-estimated generation.
Click on the attachment to read the full report:
ALSO READ: Adani Green Energy Q4 Results: Revenue From Power Supply Surges 22%
DISCLAIMER
This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
