The Adani Group is in focus after Bernstein came out with a comprehensive note on the conglomerate, lauding its ability to execute at scale against government-run competetition while expressing comfort on debt levels as well as promoter holding and share pledge metrics.
On the balance sheet concerns, Bernstein was reassuring. The brokerage said it is not concerned about debt levels, with debt repayment schedules and yields both described as comfortable. Promoter holding and share pledge metrics were also labelled as healthy.
On valuations, Bernstein noted that some names remain in line with peers, suggesting selective opportunities still exist within the portfolio.
Stock-Specific Calls
On Adani Ports, Bernstein maintained an Outperform rating with a target price of Rs 1,880, noting that the company has strong pricing power, significant room to expand in the value chain, and competes primarily against government-run ports that are structurally less efficient.
On Adani Power, the brokerage also maintained Outperform with a target price of Rs 177, arguing that the thermal power market is effectively a two-to-three player industry where equipment supply is the key bottleneck.
Adani Power has secured long-term commitments from both major Indian equipment suppliers, locking out competition for years to come - a strategic advantage Bernstein views as underappreciated.
On Ambuja Cements, Bernstein maintained a Market-Perform rating with a target price of Rs 542.
ALSO READ: Adani Ports to Acquire Jaypee Fertilizers For Rs 1,500 Crore
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