Adani Green Energy Ltd shares rose over 2% in early deals today after brokerage Macquarie initiated coverage on the Adani Group firm with an 'outperform' rating. It assigned a price target of Rs 1,200 to the stock. The fresh price target implies a potential upside of 40% from the stock's Wednesday's close.
Adani Green Energy stock rose 2.53% to Rs 875 in early deals on Thursday. Market cap of Adani Green Energy stood at Rs 1.37 lakh crore. Total 0.64 lakh shares changed hands amounting to a turnover of Rs 5.51 crore.
The large cap stock hit a 52-week high of Rs 2173.65 on June 3, 2024.
It has a high beta of 1.9, indicating very high volatility in the last one year. Adani Green shares are trading higher than the 5 day, 10 day, 20 day but lower than the 30 day, 50 day, 100 day, 150 day and 200 day moving averages.
Macquarie said Adani Green Energy is leading India's energy transition by targeting 50 GW capacity by financial year 2030, compared to the current 12 GW. The global brokerage expects Adani Green's Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) to rise at a Compounded Annual Growth Rate (CAGR) of 25% over the next five years.
While steady cash flow is supporting heavy capex, the recent decline in Power Purchase Agreement (PPA) tariffs is adjusted by raising the share of higher-tariff merchant capacities, Macquarie's note said.
Macquarie expects Adani Green to generate operating cash flow of $1.8 billion against a cumulative capex requirement of over $10 billion through financial year 2030.
The firm reported a 85 per cent rise in consolidated net profit to Rs 474 crore for the December quarter on the back of higher revenues from power supply. Net profit stood at Rs 256 crore in the year ago period.
Revenue from power supply rose to Rs 1,993 crore in the December 2024 quarter from Rs 1,765 crore in the same period year ago.