Adani Group Stock :Brokerage house Emkay Global Financial Services is positive on Adani Group’s energy stock Adani Green Energy. The brokerage has given a ‘Buy’ rating to the stock. The Adani Group company has announced winning the bid to supply 5 GW of solar energy under a competitive bidding process. The domestic brokerage called the flat rate of Rs 2.70 per kWh announced for the MSEDCL bid attractive and said that Adani Green Energy’s secured PPA capacity has now increased to around 26 GW.
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Why did brokerage show confidence in Adani Green Energy
Brokerage house Emkay Global Financial Services says Adani Green Energy has recently entered into a 50-50 JV agreement with Total, which includes 1.15 GW of operating and under-construction assets – both PPA and merchant (SPV named ARE64L). We at the brokerage believe that the value of assets in this deal is more than Rs 60 million/MWh and hence looks attractive. AGEL has also recently redeemed holdco notes worth $750 million. The company’s CFO Phuntsok Wangyal has resigned and Saurabh Shah (currently Deputy CFO of Adani Enterprises) has been appointed as the new CFO. The brokerage house has recommended investing in it with a target price of Rs 2550 per share. The brokerage has raised its FY25E/26E/27E EPS by 4%/2%/1%.
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The brokerage says that with discoms preferring stable power supply even during non-solar hours, hybrid bidding should gain more momentum apart from FDRE, RE+BESS/pumped hydro etc. and Adani Green Energy along with Adani Power is expected to benefit from these dynamics. According to media reports, Adani Power has quoted Rs 4.08/kWh rate, which is lower than Maharashtra’s APPC of Rs 4.97. The winning bid should have a solar CUF rate of 24 per cent and thermal PLF of 85 per cent. Adani Green Energy’s Jaisalmer hybrid asset is already supplying power to Mumbai from March-2023 and the state has aggressive RPO targets for the next few years.
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Adani Green Energy : 92% stronger in 1 year
The stock of Adani Green Energy closed 8 per cent higher at Rs 1924 in trading today on 17 September 2024. It had reached a price of Rs 1942 in intraday. Whereas in 1 year this stock has strengthened by 92 per cent. At the same time, the share of Adani Green has strengthened by 3629 percent in 5 years.
(Disclaimer: The views or advice on the stock are given by the brokerage house. These are not the personal views of Financial Express. There are risks in the market, so take expert advice before investing.)
