Multibagger stock to buy now: Ventura Securities sees 110% upside in Adani Energy Solutions share price

Multibagger stock to buy now: Adani Energy Solutions share price has remained in the base-building mode throughout the year. In YTD time, this Adani group stock has delivered zero returns by logging a nearly 25 per cent downside move. However, Ventura Securities believes that Adani Energy Solutions' share price is out of the base-building mode, and the Adani Group stock is set to give sharp upside movement. Adani Energy Solutions' share price may touch ₹1675 apiece in the next two years.

Adani Energy Solutions share price outlook

Highlighting the triggers that fuel Adani Energy Solutions' share price, the Ventura Securities report says, "India's transmission capacity is expected to grow from 523 km/1208 GVA in FY24 to 828 km/2093 GVA by FY34, driven by the government's plans to double generation capacity to 900 GW. This expansion involves an investment of ₹8.2 trillion in transmission infrastructure over the next decade, with ₹2.3 trillion via private TBCB projects. AESL, commanding ~30% of the private TBCB market, is well-positioned to capitalize on these developments. Moreover, the government's decision to allow private companies to acquire urban power distribution licenses presents new opportunities for AESL."

"To fund its business expansion, AESL raised ₹8,373 cr via QIP in August 2024 at ₹976 per share — Adani Group's first capital raise post-Hindenburg episode — attracting strong interest from global and domestic investors. Over FY24-27E, AESL's revenue, EBITDA, and net profit are expected to grow at a CAGR of 19.8%, 31.0%, and 50.6%, reaching ₹28,544 crore, ₹12,843 crore, and ₹3,881 crore, respectively. EBITDA and net margins are projected to expand by 1060 bps to 45% and 675 bps to 13.6%," the brokerage added.

Adani Energy Solutions share price target

On the suggestion to stock market investors regarding Adani Energy Solutions shares, the Ventura Securities report said, “AESL's robust fundamentals, strategic initiatives, and favourable industry dynamics reaffirm its long-term growth story. We recommend BUY with a DCF-based price target of ₹1,696 (19.6X FY27 EV/EBITDA). At the CMP of INR 772 (11.2X FY27 EV/EBITDA), the stock represents over 110% upside over 24 months.”

Disclaimer: The views and recommendations above are those of individual analysts, experts, and brokerage firms, not Mint. We advise investors to consult certified experts before making any investment decisions.