Brokerage Ventura Securities is positive on a couple of Gautam Adani-led Adani group firms with an upside of up to 80 per cent in the next 24 months. Shares of the company have already been buzzing on Dalal Street due to multibagger returns in the past three years.
With a rally of 4,368 per cent, Adani Green Energy emerged as the top gainer in the group. Shares of the company jumped to Rs 2,320.90 on September 23, 2022, from Rs 51.95 on September 23, 2019. Likewise, Adani Total Gas, Adani Enterprises, Adani Transmission and Adani Power also gained between 485 per cent and 2,550 per cent during the same period. On the other hand, the benchmark equity index BSE Sensex added nearly 49 per cent since September 2019.
Adani Wilmar, listed on bourses in February 2022, was traded nearly 252 per cent higher at Rs 808.80 on September 23, 2022, against the issue price of Rs 230. While sharing its view on Adani Wilmar, Ventura Securities said, “We continue to retain a hold on the stock given the fact that the food category is a large space that is significantly underpenetrated and has decadal growth opportunities ahead. Additionally, Adani Wilmar is sacrificing immediate profitability to grow rapidly and gain market share. Further, the company is scouting for acquisitions that will help it to grow faster than the industry pace.”
The brokerage has set a target price of Rs 949 with a time horizon of 24 months, indicating an upside of over 20 per cent from the current market price of Rs 768.40.
Ventura Securities also sees over 50 per cent growth in Adani Green Energy shares in the next 2 years with a target price of Rs 3,581. “We believe that Adani Green, 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.” Shares of the company traded 4.47 per cent down at Rs 2217.25 in the morning trade on September 26, 2022. Ventura Securities added that the overall revenue of Adani Green Energy to increase by 70.6 per cent CAGR from Rs 5,133.0 crore in FY22 to Rs 25,484.5 crore in FY25.
Among the other major Adani group companies, Ventura Securities believes that Adani Transmission may touch Rs 4,172 by September 2024. The figure indicates a growth of over 10 per cent from the market price of Rs 3,719 on September 26. Likewise, it has fixed a target price of Rs 1,628 for Adani Ports, showing an upside of over 85 per cent from the market price of Rs 868.
“Adani Ports (APSEZ) with its “string of pearls” port strategy along with its end-to-end solutions of its logistic arm provides it with a significant competitive advantage that will ensure that APSEZ emerges as a substantial operating cash cow in the medium term. This is aptly demonstrated by the fact that we expect the debt levels to pare to Rs 42,105.1 crore in FY25 (from Rs 45,752.3 crore recorded in FY22). However, we are cognizant of the fact that debt levels could potentially spike in case of a successful CONCOR bid,” Ventura Securities said in a report.