20% Revenue Growth Forecast At Adani Energy

New Delhi: As India doubles down on electrification to connect more rural areas, Adani Energy Solutions Ltd (AESL) with its diversified portfolio that includes transmission assets, distribution assets and a smart metering business, is poised to not only see robust growth over the next four years, but also continue to outgrow peers for at least the next decade, according to a new report by global brokerage Cantor Fitzgerald.

The report forecast the Adani Group company’s total revenue to grow at a CAGR of 20 per cent from FY24 to FY27E and adjusted EBITDA to grow at a CAGR of 28.8 per cent. This compares to peers growing revenue at low single digits and EBITDA at mid-single digits, said Cantor in its research note.

The global brokerage has set a price target of Rs2,251 apiece against Rs979 (as on September 19) for Adani Energy Solutions Ltd. On Friday, the stock of the company was trading high at Rs1,011.75.

With an enterprise value of $18.5 billion, “we believe AESL to be a very attractive way to play the rapidly expanding energy markets in India”, the report noted.

AESL offers growth unlike any other publicly traded utility/energy company across the US, Europe, or Asia.