Adani Enterprises shares rally 9% in 2 days. Jefferies sees 15% upside, here's why

Shares of Adani Enterprises surged as much as 3.4% on Monday to Rs 2,610 on the BSE, taking gains over the past two sessions to 8.7%. The rally comes in the wake of the Securities and Exchange Board of India (Sebi) clearing the Adani Group of stock manipulation allegations, reinforcing investor confidence in the conglomerate.

Sebi, in two detailed orders on Thursday, dismissed claims by U.S.-based short-seller Hindenburg Research that Adani entities had routed funds through related parties to manipulate stock prices.

The regulator also found no violations involving substantial acquisition of securities or control that could mislead investors, concluding that there was no basis for liability or penalties. Gautam Adani welcomed the ruling, calling for an apology from those who spread what he described as Hindenburg Research’s “fraudulent and motivated” claims.

Jefferies bullish on growth outlook

Brokerage Jefferies maintained a Buy rating on Adani Enterprises with a target price of Rs 3,000, implying a potential 15% upside. The brokerage highlighted multiple growth drivers, including the imminent commissioning of Navi Mumbai International Airport (NMIAL) in October 2025. According to management, the airport’s inaugural phase will have a capacity of 20 million passengers and 0.8 million tonnes of cargo annually, with expectations to scale to 17 million passengers by FY27.

Jefferies also highlighted rising yields across the company’s airport portfolio, with recent tariff revisions suggesting aero yield per passenger growth of 1.5-2.5x. The brokerage noted the group’s non-aeronautical developments, including city-side projects with offices, retail, hotels, and entertainment hubs, which are expected to contribute significantly to future revenue.

Green energy expansion adds further momentum

The company's unit, Adani New Industries Limited (ANIL) is scaling up solar and wind capacities, with 4GW of solar modules and 2.25GW of windtech already operational, the brokerage noted. The company posted an EBITDA of Rs 48 billion in FY25, more than double the previous year, driven by strong domestic and U.S. pricing. Solar cell/module capacity is set to expand to 10GW by FY27, while green hydrogen projects will be pursued based on viability.

A turnaround after turbulent months

The regulatory clearance comes nearly three years after Hindenburg’s January 2023 report, which triggered a severe sell-off across listed Adani companies, eroding more than $150 billion in market value at its lowest point. Since then, shares have rebounded steadily, with Monday’s gains reflecting renewed investor confidence in both governance and growth prospects.

Despite the recent rally, Adani Enterprises remains down 13% over the last one year and is up 2% so far in 2025.

From a technical standpoint, the stock is trading below eight of its eight key simple moving averages (SMA)—5-day, 10-day, 20-day, 30-day, 50-day, 100-day, 150-day, and 200-day, indicating bullish undertones across short-term to long-term charts.

The Relative Strength Index (RSI) stands at 71.4, suggesting the stock may be overbought and could see a pullback. Meanwhile, the Moving Average Convergence Divergence (MACD) is at 18.7 and remains above both the center and signal lines, reinforcing the ongoing bullish trend.

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(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)