Adani Enterprises Share Expected To Rise by 57.8% in 24 Months: Ventura Securities
Ventura Securities said that Adani Enterprises Ltd’s share has the potential to rise by 57.8% over the next 24 months.
Mumbai, December 28: Leading brokerage Ventura Securities Ltd has set a bullish target of Rs 3,801 for Adani Enterprises Ltd's (AEL) stock, which is a potential upside of 57.8 per cent over the next 24 months. The share of Adani Group's flagship company is currently trading at Rs 2,409 apiece. In a bull case scenario, the target price rises to Rs 5,748, which would mark an upside of 138.6 per cent, the brokerage said in its note.
“We have assumed revenue of Rs 1,66,615 crore (FY24-27E CAGR of 20 per cent) and an EBITDA margin of 20 per cent at an EV/EBITDA of 23.4X, which will result in a bull case price target of Rs 5,748," said the brokerage. Adani Enterprises is on a strong growth trajectory, as per the note by Ventura. RBI Deputy Governor M Rajeshwar Rao Says Climate Change Risks Started to Impact Financial System, Stresses Need for India-Specific Data
Over fiscal years 2024 to 2027, its consolidated revenue is expected to grow at a compounded annual growth rate of 17.5 per cent to Rs 1.56 lakh crore. "EBITDA and net margins are projected to expand by 647 basis points to 18.3 per cent and 255 bps to 5.9 per cent, respectively," it said, adding that "return ratios – RoE and RoIC – are expected to improve by 563 bps to 14.5 per cent and 99 bps to 11.3 per cent, respectively". Bench Shutdown: Canada-Based Fintech Firm Providing Accounting, SaaS Services Abruptly Shuts Down Its Operations, Puts Users in Difficult Situation.
According to the note, this growth will be driven by the company’s expansion of airport, solar, and wind turbine businesses, as well as revenue contributions from copper business. The Adani Group’s flagship company is targeting Rs 6.5-7 lakh crore in capital expenditure over the next decade, primarily focusing on airports, data centres, copper, and green hydrogen, Ventura said. "This expansion will be funded through debt, which is expected to lead to an increase in the company's debt-to-equity and debt-to-EBITDA ratios over the next few years," it added.
(The above story first appeared on LatestLY on Dec 28, 2024 06:41 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).