Jefferies initiates Buy rating on Adani Green Energy stock on ambitious capacity growth

On Saturday, Jefferies, a global investment banking firm, initiated coverage on Adani Green Energy (ADANIGR:IN), India’s largest listed pure renewable energy company, with a Buy rating and a price target of INR 2,130.00. This new target suggests a potential upside of 17% for the company’s shares.

Adani Green Energy is on a path to expand its capacity significantly, aiming to increase it by 4.6 times from its current 11 GW to 50 GW by the year 2030. The company has already made strides in its growth plan, having secured the necessary land and financing strategies to support this ambitious expansion.

The firm’s execution capabilities have been demonstrated in the past, particularly during the challenging times of the COVID-19 lockdown in 2021, when Adani Green Energy successfully set up 925 MW of capacity. This achievement has underscored the company’s ability to deliver on its commitments even in adverse conditions.

Jefferies highlighted the management’s focus on profitable growth and maintaining healthy internal rates of return (IRRs) while participating in competitive bidding processes. This strategic approach has been a key factor behind the firm’s decision to initiate coverage with a positive outlook on Adani Green Energy’s stock.

Investors may be looking at the renewable energy sector with increased interest, as companies like Adani Green Energy continue to demonstrate strong growth potential and commitment to scaling up their renewable energy capacities in the coming years.

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