Buy These Two Multibagger Adani Group Stocks, Brokerage Sees Gains Up To 67%; Details Inside

Adani Green Energy Ltd.

Adani Green Energy Limited (AGEL) is one of the largest renewable companies in India, with a current project portfolio of 20,434 MW. AGEL is part of the Adani Group's promise to provide a better, cleaner and greener future for India. Driven by the Group's philosophy of 'Growth with Goodness', the Company  owns, builds, develops, operates and maintains utility-scale grid-connected solar and wind farm projects. The electricity generated is supplied to central and state government entities and government-backed corporations. It has a market cap of Rs 3,39,980 crore.

AGEL - Stock Outlook, Returns, & Potential Gains

AGEL's current market price (CMP) on 27 September stood at Rs 2,146.30 apiece on NSE. Its 52-week low level is Rs 1,106 apiece which was recorded in October 2021, and the 52-week high level is Rs 3,050 apiece, recorded in April 2022, respectively. 

 
AGEL over the past 1 week has fallen 10.57%. However, it has given 11.92% in the past 3 months, whereas, in the past 1 year it has given 86.08%. Over the past 3 years, it gave a whooping 3,642.46% positive returns. It was listed on the exchange in June 2018, and since then it has delivered a whooping 6,713.65% positive returns to its shareholders.

The brokerage has estimated a target price of Rs 3,581 for the AGEL with a buy call, considering this, the stock is likely to gain 67% in 24 months.

AGEL - Parabolic growth trajectory while significantly de-risked

Ventura Securities said, "Post our initiating coverage of Dec 21, the Adani Green Energy Ltd (AGEL) stock has run up 68% from our recommended price of INR 1,390. The sharp run has been on account of ramp-up in execution and increasing focus on green energy globally. We believe that AGEL with its locked-in growth of 20.4GW, superior execution skills and demonstrated ability to onboard capacities at blazing speed is on track to achieve its tall ambitions of 45 GW of renewable power generation by 2030. As we roll forward to FY25, we reiterate our high conviction BUY on this stock with a price objective of INR 3581, representing an upside of 51.7% over the next 24 months."

AGEL - Capacity ramp up on stipulated path

According to the brokerage firm, "AGEL has guided for capacity build up to 8.5GW / 25GW by FY23 / FY25 respectively with a long term vision of scaling the renewable energy production to 45GW by FY30. Of this, the locked in capacity stands at 20.4 GW and hence portends robust visibility. As of FY22, the installed capacity stands at 5.4GW (excluding partially completed capacity of 1.3GW). The 1.3 GW onboarding is pending for long term transmission approvals & few other techno commercial reasons. Till the official COD is announced, AGEL is able to supply the power in the grid through short term transmission approval through power exchanges (In the recent past, the market determined tariff has been significantly higher than the long term PPA tariff). This additional revenue is not accounted for in the P&L. However, it is deducted from actual capex and thus improves project returns."

Adani Enterprise Ltd

Adani Enterprises Limited (AEL) is the flagship company of the Adani Group, one of India's largest business organisations. The company engaged in the mining, resource logistics, new energy supply chain, production of solar modules and cells, transportation and logistics (airports, highways), utilities (water, data centres), and the food and oil industries. In addition to placing a stronger emphasis on direct-to-consumer firms, it serves as an incubator for new businesses in the transportation and logistics, energy, and utility sectors.

AEL - Stock Outlook, Returns, & Potential Gains

The current market price of AEL stood at Rs 3,559.10 apiece on NSE. The 52-week low was recorded in October 2021 at Rs 1,367.70 apiece and the 52 week high in September 2022 at Rs 3,885 apiece, respectively. 

The stock in the past 1 week has given 7.18% negative return. However, it has given 63.14% positive return in the past 3 months. Over the past 1 year it gave 132.43% positive return, in the past 3 years 2,281.47% multibagger returns and in the past 5 years, it has given 3,015.19% multibagger returns, respectively. 

The brokerage has estimated a target price of Rs 4,310, considering this, it is likely to gain 22% in the 24 months.

AEL - Hydrogen ecosystem & Airports to be the next growth driver

Ventura Securities said, "Since our coverage initiation on Adani Enterprises Ltd (AEL) the stock has rallied ~70%, much more than our price target of INR 2,821. This sharp re-rating has been on the back of the strong visibility around the green H2 ecosystem (that is being built at a brisk pace) and the inclusion of AEL in the Nifty50 stocks, which has triggered a slew of new demand. At the time of publication of the IC, we had factored in only 1 mmtpa of green H2 while valuing the subsidiary ANIL. Since then, the rapidly changing geopolitical situation, especially in Europe, has raised the imperative for hastening the implementation of alternate green energy sources. As such the visibility around 2.5 mmtpa of green H2 production too has got upended."

"It added, "We raise the price target to INR 4,310, which represents an upside of 16.0% from the CMP of 3,717 over the next 24 months. Apart from the above, we believe that AEL will be exploring green energy opportunities across the globe and any announcement towards the same can lead to further rerating of the stock, beyond our estimates. Another trigger on the anvil for a re-rating is the possibility of a stake sale to a strategic investor in the airports business and declaration of a timeline for its listing."

Disclaimer

The stocks have been picked from the brokerage report of Ventura Securities. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before making any investment decision.