Morgan Stanley has an “overweight” rating on the stock with a price target of ₹1,525, which implies an upside potential of 17.3% from Thursday’s closing price.
The brokerage in its note said that Adani Green is India’s leading clean energy platform, combining strong execution at scale across clean technologies, improving portfolio quality that supports better cash flow and returns visibility, with one of the strongest capacity and earnings growth profiles in the sector.
The brokerage’s base case assumes contracted renewable energy capacity reaches 38 GW by the financial year 2031 from 20.1 GW at present, while the contracted storage scales to 49 GWh.
Morgan Stanley values the stock at 12.5 times its FY31 estimated enterprise value/EBITDA, justified by its scale, execution, storage-led evolution and superior growth.
While initiating coverage with a bullish stance on Adani Green Energy, Morgan Stanley has also highlighted three key risks for the stock that could impact its thesis. Here are the key risks:
- Slower data centre building, which would consequentially result in slower, commercial and industrial (C&I) contracting
- Slippages in renewable energy / storage build-out of Khavda evacuation delays.
- Reduced access to low-cost capital.
Of the 11 analysts who have coverage on the Adani Green Energy stock, 10 have a “buy” rating and one has a “sell” rating.Shares of Adani Green Energy are trading 1.4% higher on Friday at ₹1,320. The stock is now up 29% so far this year.Also Read: SBI Card’s most bearish analyst expects the share price to fall 34%; Here’s why
