Adani Green Energy share price gained over a percent on Friday after Axis Capital initiated coverage on the stock with a bullish view, citing strong growth visibility both in near and medium term as it believes the company is well positioned to capitalize on India Renewable Energy (RE) growth story. Adani Green shares rose as much as 1.16% to Rs 1,389.50 apiece on the BSE.
Axis Capital assigned a ‘Buy' rating to Adani Green Energy shares, with a September 2027 target price of Rs 1,704 per share, implying 13.5x FY31 run rate EV/EBITDA. Adani Green share price target implies an upside potential of 24% from Thursday's closing price.
Adani Green Energy is India's largest renewable energy player, and Axis Capital believes its scale, execution prowess, large continuous land parcel with strong resource availability, healthy financial position and strong group synergies strengthens the company's ability to optimize cost and positions it well to capitalize on this opportunity.
The Adani Group company forms around 9% of India's renewable energy capacity and 10% of annual addition, which is expected to continue with strong upside potential.
According to Axis Capital, Adani Green Energy's FY30 target of 45 GW RE, 50 GWh BESS and 5 GW of PSP provides strong growth visibility and would materially enhance operating cash flow (OCF) generation.
It estimates the company's EBITDA CAGR of 27% over FY26 - FY32E, and annual OCF of over Rs 20,000 crore by FY32, sufficient to fund equity for 12 GW+ annual capacity addition.
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“Adani Green Energy's strategic tie up with AESL derisks from merchant price volatility, provides reasonable returns on BESS projects (vs tightly bid market) and strengthens cash flow visibility,” said Axis Capital in a note.
Adani Green Energy Share Price Performance
Adani Green share price has surged 42% in six months, and has rallied over 47% in one year. The Adani Group stock has jumped nearly 52% over the past five years.
At 11:50 AM, Adani Green Energy share price was trading 0.41% higher at Rs 1,379.15 apiece on the BSE.
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