Adani Green stock can rally 75 pc, Khavda RE plant a game changer: Jefferies
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Riding on strong industry tailwinds and power demand growth, Adani Green Energy’s stock can grow an impressive 75 per cent in a bull-case scenario given the capacity expansion target, according to Jefferies.
The global brokerage firm has set a target price of Rs 2,130 apiece, implying a potential upside of 17 per cent from the previous close.
In the morning trade on Monday, the share of Adani Green went up 1.5 per cent to 1,830 apiece.
However, Jefferies has put a more optimistic upside scenario, suggesting a potential stock price of Rs 3,180 -- a 75 per cent upside from the current price -- citing the company’s 50 gigawatt (GW) capacity target by 2030.
The ‘game-changer' for Adani Green is the Khavda plant in Gujarat. The Khavda renewable energy (RE) plant is spread over an area of 538 sq km, almost five times the city of Paris.
Within 12 months of breaking ground, Adani Green Energy Limited (AGEL) already operationalised the first 2 GW and plans to add a total of 6 GW capacity in FY25 and Khavda will contribute a major part of this capacity.
The entire 30 GW RE capacity will be developed in Khavda by 2029, also setting a global benchmark for the speed of execution at such a large scale.
Jefferies also cited the doubling of the company's profit in the first quarter of fiscal 2025. The Adani Group company's net profit rose 95 per cent year-on-year to Rs 629 crore in the April-June quarter.
The global brokerage also said that power capex investments projected should rise 2.2 times to $280 billion in fiscal 2024-2030.
Adani Green Energy last week operationalised the first 250 MW wind capacity at the 30 GW RE plant at Khavda.
With this milestone, 2,250 MW of cumulative capacity has been made operational at the Khavda plant, strengthening the company’s leadership in India with the largest operational portfolio of 11,184 MW.
“Adani Green is well on track to achieve its capacity target of 50 GW including at least 5 GW energy storage in the form of pumped hydro, with sites already secured and clear visibility on evacuation,” Amit Singh, CEO of Adani Green Energy, said.
