Adani stocks soar up to 12% after Jefferies sees up to 53% upside in Adani Energy and others

Adani group stocks rallied on Friday, led by a sharp move in Adani Total Gas, after Jefferies highlighted growth plans across key group companies including Adani Energy Solutions, Adani Ports, Adani Green Energy and Adani Power.

Adani Total Gas emerged as the top gainer in the pack, rising more than 12%. Adani Energy Solutions, Adani Ports & SEZ, Adani Green Energy, Adani Power and Adani Enterprises also gained in the range of 1-3%.

The move came as Jefferies retained a positive view on several Adani group companies covered in its latest reports. Among the names in the uploaded Jefferies notes, the brokerage has the highest implied upside on Adani Energy Solutions, with a target price of Rs 2,060, implying 53% upside from the previous close of Rs 1,350.


For Adani Energy Solutions, Jefferies said management remained upbeat on the trading business and India’s transmission outlook. The company reiterated its medium-term annual capex run-rate guidance of Rs 200-250 billion. Jefferies said smart meters and the trading business are ramping up well and will be key growth drivers.

The brokerage said Adani Energy Solutions’ trading segment has tied up power supply largely with Adani Green and Adani Power. The recent 2.5 GW round-the-clock power supply tie-up with MSEDCL is expected to increase tied-up volumes in the trading segment to 57% in FY28E from 20% at the end of Q1FY27. Jefferies expects revenue and EBITDA CAGRs of 22% and 29%, respectively, over FY26-30E for the company.

Adani Green Energy also found support from Jefferies’ bullish view. The brokerage has a target price of Rs 1,695 on the stock, implying 34% upside from the previous close of Rs 1,269.6.

Jefferies said Adani Green’s management remains confident of adding 5 GW capacity in FY27E. The company is aligning capacity additions with transmission infrastructure to reduce curtailment risk. Plans to raise battery energy storage capacity from 3.6 GWh currently to more than 10 GWh by FY27E are also on track.

The brokerage expects Adani Green’s capacity to rise to 44 GW by FY30E against the company’s target of 50 GW. It also expects EBITDA to grow at a 30% CAGR over FY26-30E, helped by capacity additions. Jefferies said Khavda will remain central to the company’s growth, with the site expected to account for a larger share of capacity over time.

Adani Power gained after Jefferies maintained a Buy rating with a target price of Rs 270, implying 33% upside from the previous close of Rs 202.35.

The brokerage said Adani Power management reiterated its target of expanding capacity by 2.5 times to 45 GW by FY32. Of the upcoming 23.7 GW capacity, 56% is already locked in under long-term power purchase agreements, while the aim is to tie up the full capacity. Jefferies expects the company to deliver 22% EBITDA CAGR over FY26-30E and turn free cash flow positive by FY30E.

Jefferies also said Adani Power has one of the lowest leverage profiles among generation companies. Its net debt-to-EBITDA is expected to peak at 3.6 times in FY28E and decline to 2.3 times by FY30E.

Adani Ports & SEZ also rose after Jefferies kept a target price of Rs 2,160, implying 25% upside from the previous close of Rs 1,725.95.

The brokerage said Adani Ports remains confident of achieving its 1 billion tonne cargo target by 2030, driven by organic growth in domestic ports and a ramp-up at international ports. Jefferies expects 13% volume CAGR against management’s 16% target and sees the company potentially turning net cash positive by FY31E.

Jefferies said Adani Ports' FY27 year-to-date volume growth of 16% was ahead of its 14% FY27 estimate. The brokerage also pointed to container cargo growth and the ramp-up at Vizhinjam as key drivers.

Disclosure: This article has been written by Podishetti Akash, who is not a SEBI-registered Research Analyst or an Investment Adviser. Podishetti Akash and her ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclourses here.