Why Jefferies Is Bullish On Adani Group Companies | Parag Thakkar Weighs In

[00:00:00]Another a group of stocks in the back of a brokerage note and this is Jefferies.

[00:00:04]There is a bullish commentary on a few Adani group companies. They flagged strong capacity expansion and improving growth visibility as well as attractive valuations from their perspective. Let's take a look at what they're saying on three of these companies. Sharad joining in to tell us what they're saying.

[00:00:20]Sharad?

[00:00:21]>> Good morning, Alex. First one is Jefferies on Adani Green and over here they have maintained a buy rating and the target price is 1435 rupees per share. And the bullishness comes in is on the capacity expansion. Now of course they are ramping up the battery energy storage system also and to put that in perspective, the number is 10 gigawatt in FY27 which is expected to go up from the current numbers of the 3 gigawatt.

[00:00:45]Also the valuations are at a 56% discount to the January levels and the peak one year forward EV EBITDA still has an upside for execution. You're looking at Adani Power maintain buy rating. Target price is 255 rupees per share. And also the focus is to increase the almost 56% of the upcoming 23.7 gigawatt capacity which is already locked in long term PPAs to make it up to 100% and also they're expecting a 23% EBITDA CAGR over the next four years to turn free cash flow positive. That is where, you know, there is a bullishness coming in from the broking house. And lastly, Jefferies on Adani Energy Solutions have given a maintain buy rating target price of 1665 rupees per share. And they have stated that the near term bidding pipeline is roughly 1.5 lakh crore rupees compared to 500 and almost 54,000 crore rupees by end of FY25. And also the company is executing strong transmission orders. So this is the bullishness coming in from Jefferies on three Adani group of stocks.

[00:01:49]>> Yeah. Yeah. And of course standard disclaimers there. You're watching this report on NDTV Profit. That's a subsidiary of AMG Media Networks Limited and Adani Group company. As an investment opportunity on what you've seen in Adani Group stocks, do you think that the run-up is already taken place or is there more to go?

[00:02:07]Uh looking at now that um headwinds are out of the way, which were there in place for the last few years, a lot of plans are now coming to the fore.

[00:02:15]>> Yeah, absolutely. So, basically, stocks have run up. That is the only factor which stops me. Otherwise, uh we were discussing Adani Enterprises 1850, Adani Ports at 1450. So, uh the group is doing phenomenally well.

[00:02:27]If you meet them, you get a feel that we are in a country which is having 12% GDP growth.

[00:02:32]>> [laughter] >> Yeah, so yeah, yeah, they are so optimistic, bullish, and uh their execution is phenomenal. So, I would say that um yeah, so everything is going on great for them. It is only that stock prices have rallied a lot. But that is we have seen institutional investor coming back in a very big way. So, >> I was interesting to see SBI Mutual Fund lap up uh the entire uh GQG selling of GQG in Adani Enterprises and Adani Energy Solutions. So, yeah, a good going. Kush, you like trending stocks higher, right? I mean, what within this group looks good for a trade even now?

[00:03:08]>> Uh I think Adani Power still looks good.

[00:03:11]And I I think I'm you know submitting to the idea that abhi to niche mein nahi milenge. Yeh to thoda upar mein hi lena padega. Uh Adani Power is something that's corrected a bit and you know it's close to support levels of about 225.

[00:03:24]So, that is something that you can consider. Uh you know the other one that was discussed, I think Adani Green. Here too, the prices are elevated in terms of you know where they are in terms of the recent swing highs, but the RSI is not.

[00:03:35]So, you know there is still momentum on the upside. So, with a stop loss at about you know 1450, you can consider this for 1600 plus 1695 kind of levels.

[00:03:43]So, Adani Green, Adani Power, just because the RSI is at a very uh you know benign level, but trending upwards, you can still consider both of these names.