IIFL Capital has initiated coverage on Adani Enterprises Ltd. with a 'buy' rating and a target price of Rs 3,282, implying an upside potential of around 22%.
The brokerage believes FY27 marks the beginning of a new phase for Adani Enterprises as several businesses incubated over the past few years begin contributing meaningfully to revenue and earnings.
As the Adani Group's flagship incubator, Adani Enterprises has built a presence across a diverse set of sectors including airports, data centres, energy transition, copper and defence. According to IIFL Capital, the company's expertise in execution, scaling and financing positions it well to benefit from multiple long-term capital expenditure themes emerging across India.
The brokerage expects recently commissioned and expanding projects such as Navi Mumbai International Airport, the Ganga Expressway, copper operations, new energy initiatives and defence manufacturing to become important contributors to growth over the coming years.
IIFL Capital expects Adani Enterprises to deliver revenue and EBITDA CAGR of 22% and 35%, respectively, between FY26 and FY29, driven by the ramp-up of these businesses.
ALSO READ: HSBC Picks Financials Over Staples, Bets On Industrials As India Valuations Cool
"FY27 is a turning point," the brokerage said, noting that several ventures are reaching commercial scale simultaneously after years of investment and development.
Among the company's businesses, airports remain a key pillar of value creation. However, IIFL Capital also sees significant earnings potential from newer verticals such as data centres, defence, copper and PVC as they scale up and increase their contribution to the overall business.
The brokerage highlighted four major catalysts for growth: commencement of operations at Navi Mumbai International Airport, additional manufacturing capacity at Adani New Industries Ltd., toll collections from the Ganga Expressway and improved utilisation at the copper smelter.
According to IIFL Capital, Adani Enterprises is moving from a phase focused on building and incubating businesses to one centred on monetisation and earnings generation. The brokerage believes the company's diversified portfolio provides exposure to several high-growth sectors at a time when demand for infrastructure, energy transition and manufacturing investments continues to expand.
Valuing the company on a sum-of-the-parts basis, IIFL Capital has assigned a target price of Rs 3,282 and said Adani Enterprises is well positioned to capture opportunities across multiple growth engines as its newer businesses mature and begin contributing at scale.
(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.