Shares of Adani Energy Solutions Limited (AESL) saw positive movement on September 20, with analysts from Cantor Fitzgerald predicting a potential upside of up to 125%. The stock reached an intraday high of ₹1,014.90 on the National Stock Exchange, reflecting a 3.66% increase from the previous close, recovering after two consecutive days of decline.
Over the past year, AESL, a key player in the Adani Group’s power sector, has gained 17.68% on the Bombay Stock Exchange. Notably, in the last five years, the stock has delivered impressive returns, soaring by 353.36%.
AESL, formerly known as Adani Transmission, boasts a diversified portfolio that includes transmission and distribution assets as well as a smart metering business. As the largest private-sector power transmission and distribution entity in India, the company is well-positioned for future growth.
In its latest research report, Cantor Fitzgerald highlighted AESL’s enterprise value of $18.5 billion, asserting that it represents a compelling investment opportunity in the rapidly evolving Indian energy market. The brokerage emphasized that AESL’s growth potential stands out compared to publicly traded utility and energy companies across the US, Europe, and Asia.
The report noted, “We anticipate robust growth in its transmission business as it completes nine projects recently awarded over the next 18 to 24 months.”
Cantor Fitzgerald assigned an ‘Overweight’ rating to AESL, recommending a price target of ₹2,251 indicating a potential increase of nearly 125% from current levels. The brokerage also projected that the company’s revenue could grow at a compound annual growth rate (CAGR) of 20% from fiscal year 2024 to 2027.
With a population of 1.4 billion, India is the most populous country globally, leading to a continuous increase in electricity demand. The nation has invested in and promoted renewable energy to meet this rising need. As the shift towards renewable energy continues, the infrastructure necessary for electricity transmission and distribution will become increasingly critical a sector where AESL is strategically positioned to thrive.
