Adani Energy Solutions Limited (AESL) shares were trading in green on September 20 amid the analysts at the global brokerage Cantor Fitzgerald expecting up to 125 percent upside in the Adani Group stock. The stock has surged to an intraday high of Rs 1,014.90 per share on the NSE, advancing 3.66 percent from its previous close. The stock has gained after two days of consecutive fall.
In the last one year, the power stock arm of the Adani Group has gained 17.68 percent on the BSE. In the last five years, it delivered multibagger returns of 353.36 percent to maker investors richer with massive gains.
AESL (formerly Adani Transmission) has a diversified portfolio that includes transmission assets, distribution assets, and a smart metering business. Adani Energy Solutions is the largest private-sector power transmission and distribution business in India
"With an enterprise value of $18.5 billion, we believe AESL to be a very attractive way to play the rapidly expanding energy markets in India. First, we believe AESL offers growth unlike any other publicly traded utility/energy company across US, Europe, or Asia," Cantor said in its recent research report.
It added, "We expect its transmission business will see strong growth as it completes the nine projects it has recently been awarded over the next 18-24 months."
Adani Energy Solutions Share Price Target
The brokerage, in its report, tagged an 'Overweight' rating on the counter, recommending a share price target of Rs 2,251, an upside potential of nearly 125 percent from its current levels.
The research firm expects the company's revenue to grow at a CAGR of 20 percent from fiscal 2024 to 2027.
India is home to 1.4 billion people and is the most populous country in the world. The demand for electricity will only increase. To meet this growing demand, India has heavily invested and promoted renewable energy.
As more electricity is generated from renewables, infrastructure to transmit and distribute that electricity will only become more important, and that is entirely where AESL lies, the research report said.
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