Adani Group stocks saw a significant rally on Friday after global brokerage firm Jefferies maintained its bullish across the group's infrastructure and energy businesses, highlighting several growth drivers.
Adani Total Gas emerged as the top gainer among the pack with more than 12% rally, followed by Adani Energy Solutions, Adani Ports & SEZ, Adani Green Energy, Adani Power, Adani Enterprises gaining in the range of 1-3%.
Jefferies has maintained its ‘Buy' rating on Adani Power, Adani Green Energy, Adani Energy Solutions and Adani Ports & SEZ shares.
It has a target price of Rs 270 for Adani Power, Rs 2,060 for Adani Energy Solutions and Rs 1,695 for Adani Green Energy. Adani Ports target price is Rs 2,160.
The brokerage's latest assessment follows management discussions on capacity expansion and the outlook for the three businesses.
Jefferies firm remains confident of Adani Ports achieving its 1 billion tonnes cargo target by 2030, driven by organic growth in domestic ports and ramp up at its international ports.
Adani Ports' balance sheet remains strong with potential to turn net cash by FY31. This indicates room for growth capex, Jefferies said.
The brokerage expects Adani Power's EBITDA to grow at a compound annual rate of 22% between FY26 and FY30E. It also expects the company to turn free cash flow positive by FY30E from negative levels currently.
For Adani Energy Solutions, Jefferies said the smart metering and trading businesses are ramping up and will be key growth drivers going forward.
Adani Green Energy's management remains confident of adding 5 GW of capacity in FY27E.
The brokerage said the capacity tie-up with Adani Energy Solutions limits the upside from selling power in the merchant market, while making earnings more predictable.
ALSO READ: Catch Stock Market Live Udpates Here
(Disclaimer: New Delhi Television is a subsidiary of AMG Media Networks Limited, an Adani Group Company.)
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.