Investment Idea : Accumulate Adani Green Energy Ltd. For Target Rs.1388 Asit C. Mehta Investment Interrmediates Limited
Adani Green Energy Limited (ADANIGREEN) is India’s largest renewable power producer and one of the world’s leading developers of utility-scale solar, wind, and hybrid energy projects. Established in 2015 under the Adani Group, the company plays a pivotal role in driving India’s clean energy transition and strengthening its renewable infrastructure base. With an operational capacity of approximately 16.6 GW and a locked-in pipeline exceeding 34 GW, ADANIGREEN is on course to achieve its ambitious 50 GW target by 2030, which includes pumped storage capacity for grid stability and energy balancing Renowned for its execution of ultra-large-scale projects such as the 30 GW Khavda Renewable Energy Park in Gujarat, poised to become the world’s largest single-site renewable installation, the company exemplifies leadership in scale, technology, and innovation. Its strong focus on securing long-term Power Purchase Agreements (PPAs), covering over 85% of total capacity, ensures stable and predictable cash flows while allowing flexibility through participation in merchant and commercial & industrial (C&I) segments Operating across multiple states.
Outlook and Valuation
We remain optimistic about Adani Green Energy’s (ADANIGREEN) long-term growth prospects, backed by its dominant position in India’s renewable power sector, strong project execution, and disciplined capacity expansion. With an operational base of ~16.6 GW and a robust pipeline exceeding 34 GW, the company is well on track to achieve its 50 GW target by 2030, driven by rapid commissioning at the Khavda Renewable Energy Park and continued efficiency gains. A high share of long-term Power Purchase Agreements (PPAs), covering over 85% of capacity, provides stable cash flows, while the merchant and C&I portfolio offers upside flexibility. Supported by digital asset monitoring, sustainable operations, and vertical integration within the Adani Group, ADANIGREEN remains a key enabler of India’s clean energy ambitions. We project a revenue CAGR of 16.2% over FY25-FY27E and, based on an EV/EBITDA multiple of 30x on FY27E estimates, derive a target price of INR 1,388, maintaining an ACCUMULATE rating. This valuation reflects ADANIGREEN’s superior execution, expanding scale, and leadership in India’s renewable transformation.
Company at a glance
* ADANIGREEN’s strategic focus includes a diversified mix of solar, wind, hybrid, and storage technologies, allowing it to optimize energy generation and integrate effectively with the national grid.
* The company’s strong project execution capabilities and advanced technological solutions ensure high levels of operational efficiency, reliability, and scalability.
* ADANIGREEN benefits from a strong pipeline of projects, strategically located across multiple states, ensuring diverse resource access and a balanced risk profile.
* Backed by the Adani Group’s strong execution and integration ecosystem, including shared logistics, transmission, and financing synergies, enabling rapid capacity addition and cost competitiveness.
* Poised to benefit from structural tailwinds such as India’s 500 GW renewable energy target by 2030, National Green Hydrogen Mission, and supportive policy frameworks, positioning ADANIGREEN as a key driver of India’s clean energy transformation.
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