Jefferies initiates coverage on Adani Green Energy with buy rating, sees 18% upside

Global brokerage firm Jefferies initiated coverage on Adani Green Energy with a 'Buy' rating and target price of Rs 2,130, which indicates an upside potential of 18% from the previous day's closing price of Rs 1,806 apiece.

In its coverage initiation, Jefferies highlighted the Khavda 30 GW execution as a key game-changer for the company.

The brokerage also pointed out that Adani Green Energy's balance sheet leverage is expected to decrease to 2.8x by 2030, down from the current 6.4x. Additionally, Jefferies praised the company's prudent capital management program.


According to Jefferies, Adani Green Energy's management is focused on profitable growth and achieving a healthy internal rate of return (IRR) during bidding processes.

At 11:02 am, the scrip was trading 1.3% higher at Rs 1,829 on BSE. The stock has also surged 14% year-to-date, while it has risen 67% in the past one year.

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In Q1 FY25, Adani Green reported a 38% year-on-year (YoY) growth in its consolidated net profit at Rs 446 crore. The same stood at Rs 322 crore a year ago.

Its revenue from operations in the reporting period increased 31% YoY to Rs 2,834 crore, compared with Rs 2,162 crore in the corresponding period of the previous year.

Revenue from the power supply increased 24% YoY to Rs 2,528 crore in the first quarter as against Rs 2,045 crore posted in the previous year quarter.

EBITDA for the power supply segment increased 23% YoY to Rs 2,374 crore in the reporting period. It was Rs 1,938 crore in the same quarter of the previous year. Adani Green said the robust growth in revenue, EBITDA and cash profit is primarily driven by a capacity addition of 2,618 mw over the last year period.

Operational capacity expanded by 31% YoY to 10.9 GW in the June quarter, which further increased to 11.2 GW post wind capacity addition of 250 MW in July 2024.

The expansion of operational capacity was driven by greenfield additions, including 2,000 MW of solar capacity in Khavda, 418 MW of solar capacity in Rajasthan and 200 MW of wind capacity in Gujarat.

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