Mumbai: Adani Group stocks rallied on Friday, September 18, after global brokerage Jefferies retained its Buy ratings on Adani Power, Adani Green Energy, Adani Energy Solutions and Adani Ports & Special Economic Zone, citing capacity expansion, infrastructure growth and improving business prospects.
Adani Total Gas emerged as one of the biggest movers in the group, while several other Adani companies also traded higher during the session. Adani Group shares gained as investors responded to Jefferies’ assessment of the companies following management discussions on expansion plans and future growth drivers.
The brokerage has assigned target prices of Rs 270 for Adani Power, Rs 2,060 for Adani Energy Solutions, Rs 1,695 for Adani Green Energy and Rs 2,160 for Adani Ports. These are Jefferies’ research estimates and should not be treated as guaranteed future prices.
Adani Total Gas leads group stocks
Adani Total Gas was among the strongest performers during Friday’s trading session, rising sharply. Business Standard reported that the stock gained as much as around 15% in intraday trading, while other Adani Group companies also recorded gains.
Adani Energy Solutions, Adani Ports, Adani Green Energy, Adani Power and Adani Enterprises also moved higher during the session.
At the close of trading, Adani Ports was among the notable gainers on the Nifty, while Adani Enterprises also ended higher.
The broader market was relatively steady on Friday, with the Nifty 50 rising 75.80 points, or 0.31%, to 23,346.40, while the Sensex declined marginally by 19.63 points, or 0.03%, to 74,294.96.
Jefferies retains Buy ratings on four stocks
Jefferies has maintained its Buy recommendation on four Adani Group companies — Adani Power, Adani Green Energy, Adani Energy Solutions and Adani Ports & SEZ.
The brokerage’s latest assessment followed discussions with company management around capacity expansion and the outlook for their respective businesses.
The target prices set by Jefferies are:
- Adani Power: Rs 270
- Adani Energy Solutions: Rs 2,060
- Adani Green Energy: Rs 1,695
- Adani Ports & SEZ: Rs 2,160
Jefferies’ research reflects its assessment of the companies’ future earnings and growth prospects. Actual share prices can move differently depending on market conditions, company performance and other factors.
Adani Ports targets 1 billion tonnes of cargo
Jefferies said it remains confident that Adani Ports can achieve its target of handling 1 billion tonnes of cargo by 2030.
The brokerage expects the growth to be supported by organic expansion at domestic ports and increased activity at the company’s international port operations. Logistics is also expected to provide an additional growth opportunity for the ports business.
Jefferies also highlighted the company’s balance sheet, saying Adani Ports could potentially become net cash positive by FY31. According to the brokerage, this could provide greater room for growth-related capital expenditure.
The brokerage has set a target price of Rs 2,160 for Adani Ports.
Adani Power capacity expansion in focus
For Adani Power, Jefferies expects strong earnings growth over the coming years.
The brokerage expects the company’s EBITDA to grow at a compound annual growth rate of around 22% between FY26 and FY30E. It also expects Adani Power to turn free cash flow positive by FY30E.
According to Jefferies, Adani Power management has reiterated a plan to increase its generation capacity 2.5 times to 45 GW by FY32.
The company has also been working to secure long-term power purchase agreements for a substantial portion of its upcoming capacity, which Jefferies said could reduce the risk associated with capacity expansion.
Adani Energy Solutions sees smart metering growth
Jefferies identified smart metering and the trading business as important growth drivers for Adani Energy Solutions.
The brokerage also pointed to the company’s transmission business and its pipeline of projects as factors supporting its medium-term outlook. Business Standard reported that Jefferies expects Adani Energy Solutions to deliver double-digit growth over the medium term.
The company has a targeted medium-term capital expenditure run rate of around Rs 20,000 crore to Rs 25,000 crore, according to the brokerage’s assessment. Its trading operations have also been expanding, with power supply arrangements involving Adani Green Energy and Adani Power.
Jefferies has assigned Adani Energy Solutions a target price of Rs 2,060.
Adani Green Energy plans 5 GW capacity addition
Adani Green Energy is another company where capacity expansion remains central to the growth outlook.
Jefferies said the company’s management remains confident of adding 5 GW of capacity in FY27E. The company is also aligning its capacity additions with transmission infrastructure, according to the brokerage, which could help address potential curtailment risks.
The brokerage also highlighted the company’s battery energy storage plans. Adani Green Energy is targeting an increase in its battery energy storage system capacity from around 3.6 GWh to more than 10 GWh by FY27E, according to Business Standard’s report on the Jefferies assessment.
Jefferies has set a target price of Rs 1,695 for Adani Green Energy.
Why Adani stocks moved higher
The Friday rally came after Jefferies highlighted several potential growth drivers across the group’s infrastructure and energy businesses.
For Adani Power, the focus is on large-scale generation capacity expansion and long-term power contracts. For Adani Green Energy, renewable capacity and energy storage remain key areas. Adani Energy Solutions is expected to benefit from transmission projects, smart metering and power trading, while Adani Ports is focused on cargo growth, international expansion and logistics.
The market response reflects investor attention to these projections, but the brokerage’s estimates remain subject to execution, market conditions and other business risks.
Adani Group stocks remain in focus
The latest rally has once again put Adani Group companies in focus in the Indian stock market. Jefferies’ continued Buy ratings and its updated target prices have highlighted the brokerage’s expectations for capacity expansion, infrastructure development and improving cash flows across the selected companies.
However, brokerage ratings and target prices represent analysts’ views and are not guarantees of future stock performance. Investors should consider company disclosures, market conditions and their own financial circumstances before making investment decisions.