Adani Green Energy stocks gain 4% as Macquarie initiates coverage with 'outperform' rating

dani Green Energy stocks under focus as Macquarie initiates coverage with 'outperform' rating

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Macquarie, on March 13, initiated its coverage on the Adani Green stock, rating it as 'outperform' at a price target of Rs 1,200. This indicates a 40 percent potential upside from Wednesday's closing figures.

In the opening hours of today's trading session, stock prices of Adani Green stood at a gain over 4 percent as of 10:00 am.

Adani Green Energy continues to be India's leading energy transition, with a targeted 50 GW capacity build-up by FY2030 (current capacity is at 12 GW). Therefore, Macquarie in its note expressed its forecast of Adani Green's EBITDA rising at 25 percent CAGR over the next five years, on a more conservative pathway.

Macquarie’s report highlights that although substantial capital expenditure is supported by consistent cash flow, the recent drop in Power Purchase Agreement (PPA) tariffs has been counterbalanced by a growing allocation to higher-priced merchant capacities. This strategic shift helps maintain revenue stability despite pricing pressures in long-term contracts.

Earlier this week, Fitch Ratings had sought a negative outlook to Adani Energy Solutions Limited, due to complications surrounding corporate governance and potential risks because of the ongoing US investigations.

Therefore, Adani Energy also dropped out from Fitch's 'rating watch negative' list, due to moderated risks related to its liquidity and funding, getting a 'BBB-' rating for long-term foreign- and local-currency issuer default ratings.

As of the most recent development, in a regulatory filing, Adani Green Energy revealed that its wholly owned stepdown subsidiary, Adani Solar Energy has commissioned a 250 MW solar power project in Kadapa (Andhra Pradesh).

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