Adani Green Energy has received an ‘outperform’ rating from Macquarie, which has set a target price of ₹1,200, implying a strong upside from the current market price of ₹854.90. The brokerage sees the company as a leader in India’s energy transition, with plans to expand its renewable energy capacity to 50GW by FY30, a significant increase from the current 12GW.
Macquarie estimates a 25% EBITDA CAGR over the next five years, driven by a more conservative but steady blended realization strategy. While recent declines in PPA tariffs have raised concerns, the brokerage believes this will be offset by a higher share of merchant capacities with better tariffs.
Despite a massive capex plan of over $10 billion through FY30, Adani Green is expected to generate $1.8 billion in annual operating cash flow, ensuring financial stability. The brokerage also projects an improvement in leverage, with Net Debt/EBITDA expected to decline to 5x by FY30 from 7x currently.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors are advised to conduct their own research before making any investment decisions.
