Shares of Adani Green Energy Ltd surged 3.47% to ₹883.10 on Wednesday after Macquarie assigned an ‘outperform’ rating to the stock, setting a target price of ₹1,200. The brokerage sees significant upside from the current market price, citing Adani Green’s strong position in India’s energy transition.
Macquarie highlighted the company’s ambitious renewable energy capacity expansion plans, aiming to increase from 12GW to 50GW by FY30. The firm expects a 25% EBITDA CAGR over the next five years, driven by a steady blended realization strategy.
While recent declines in Power Purchase Agreement (PPA) tariffs have raised concerns, the brokerage believes this will be offset by a higher share of merchant capacities with better tariffs. Additionally, despite a capex plan exceeding $10 billion through FY30, Adani Green is projected to generate $1.8 billion in annual operating cash flow, ensuring financial stability.
Macquarie also expects an improvement in the company’s leverage position, with Net Debt/EBITDA projected to decline to 5x by FY30 from the current 7x.
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.
