Adani Shares: Hindenburg Who? 5 Out Of 7 Stocks Rise 5-25% YTD; Ports-To-Energy, 5 Adani Stocks To Buy

Adani Group Stocks: All seven Adani Shares rallied between 1-2% on Monday, April 29, as these port-to-energy companies are going to begin announcing their Q4 results from this week onward. Adani stocks have significantly improved from the bloodbath in early 2023 due to the bombshell report of US short seller Hindenburg. Not just that, five out of seven Adani shares are among the top performers of 2024 so far. Ahead of Q4, there is a buying recommendation in five Adani stocks so far!

All Adani stocks namely Adani Enterprises, Adani Ports, Adani Green Energy, Adani Energy Solutions, Adani Power, Adani Total Gas, and Adani Wilmar rose by 1-2% on BSE during trading hours of Monday before correcting in the closing bell.

This comes after AdaniConneX, a 50:50 JV between Adani Enterprises and
EdgeConneX announced that it has established India's largest sustainability-linked financing to raise to USD 1.44 billion. The financing has an initial commitment of USD 875 million, with an accordion feature to extend commitment up to USD 1.44 billion. The transaction elevates AdaniConneX's construction financing pool to USD 1.65 billion, building on the maiden construction facility of USD 213 million executed in June 2023.

Further, investors are also awaiting major Q4 results by Adani companies this week, starting from Tuesday onward.

Adani Energy Solutions is first up to declare its Q4 earnings on April 30, followed by Adani Power and Ambuja Cements on May 1st. While leading Adani Enterprises and Adani Ports will declare their quarterly report card on May 2nd, and lastly Adani Green Energy on May 3rd.

Year-to-date, 5 out of 7 Adani stocks are among bulls. The highest surge is by the Group's cash-cow Adani Ports to the tune of 26%, while Adani Power, Adani Energy and Adani Green Energy jumped nearly 13% each. While the flagship company, Adani Enterprises soared by 6%. On the other hand, Adani Wilmar is down by 6.3%, and Adani Total Gas has dipped by 8.3%.

Ahead of Q4 results, there are buying sentiments in five Adani Group stocks as of now.

1. Adani Ports: (CMP: Rs 1317)

In its latest coverage on Adani stocks, Motilal Oswal said that going forward, APSEZ targets to become India's largest integrated transport utility and the world's largest private port company by 2030. APSEZ has a diversified cargo mix and is looking to increase the cargo share of ports on the East Coast. The operational ramp-up at the recently acquired ports is expected to drive a 10% growth in cargo volumes over FY24-26. This would drive a revenue/EBITDA/PAT CAGR of 14%/15%/19% over FY24-26.

It said, "We reiterate our BUY rating with a TP of INR1,590 (premised on 17x FY26E EV/EBITDA)."

2. Adani Enterprises: (CMP: Rs 3079.55)

Considering Adani Enterprises' strong business prospects, Jefferies initiated coverage of the company, recommending BUY for a target price of Rs 3,800. The brokerage believes that Adani Enterprises businesses have the potential to emerge as industry leaders. Jefferies expects Adani Enterprises' consolidated operating profit to double in the financial year 2025-25, and further grow by 3-folds by fiscal 2027-28, on the backdrop of new businesses of airport and green hydrogen.

Jefferies is not alone.BP Wealth has added Adani Enterprises to its super seven picks for February 2024 with a target price of Rs 3,499. Further, a latest report by American financial services firm, Cantor Fitzgerald believes Adani Enterprises is at the core of everything India wants to accomplish. Cantor has set a target price of Rs 4,368 for 12 months.

3. Adani Energy Solutions: (CMP: Rs 1060.65)

Ventura Securities note said, "Over FY23-27E, we expect the company's power transmission revenues and EBITDA to grow at a CAGR of 18.7% and 19.7% to INR 7,822 cr and INR 6,649 cr respectively." Thereby, on the valuation, the brokerage added, "We value AESL at 17X EV/EBITDA and recommend BUY with a target price of Rs 1,600."

4. Adani Green Energy: (CMP: Rs 1806.60)

In another note, Ventura Securities has said, "We initiate coverage on AGEL with a BUY for a price target of 2830(69.9x FY27 P/E) representing an upside of 49.7% from the CMP of INR 1890 over the next 24 months. While the current valuations may seem demanding, the high growth earnings trajectory should ensure that the valuations sustain."

It added, "We expect revenues to grow at a CAGR of 26.5% INR 1,9950 cr, EBITDA is expected to grow at CAGR 38.9% to INR 1, 8358 cr with 92% margins (+2870 bps) by FY27, while net earnings are expected to grow from INR to INR 4,262 cr (CAGR of 44.8%) with 17.8% margins (+610bps)."

5. Adani Wilmar: (CMP: Rs 343.30)

Brokerage Nuvama is the latest to initiate coverage on Adani Wilmar. After the company recorded the highest ever volumes in Q4 provisional data, Nuvama estimates Adani Wilmar to record a 4% drop in sales during the quarter, which is lesser than the brokerage's estimates. Also, Adani Wilmar is expected to report 43% YoY growth in Q4FY, and its margins are likely to expand by 126 basis points compared to Q4 of FY23, as per Nuvama.

On the back of strong volumes, continued market share gains and regional approaches to push deep penetration, Nuvama has retained BUY on Adani Wilmar for a target price of Rs 480.

Disclaimer: The recommendations made above are by market analysts and are not advised by either the author or Greynium Information Technologies. The author, the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns. in advises users to consult with certified experts before making any investment decision.