Adani Green shares rebound on power consumption agreement; check target prices
Shares of Adani Green Energy rebounded during the trading session Friday after the company announced for a power consumption agreement by its wholly owned subsidiary.
- Oct 4, 2024,
- Updated Oct 4, 2024 2:42 PM IST
Shares of Adani Green Energy rebounded during the trading session Friday after the company announced a power consumption agreement by its wholly owned subsidiary. The company was informed about the agreement through an exchange filing on Thursday.
Adani Renewable Energy Three, a wholly-owned step down subsidiary of Adani Green Energy has entered into power consumption agreement for supply of green power to a commercial and industrial (C&I) customer, said the exchange filing. "The said green power shall be supplied from a new 61.4 MW renewable energy plant, located at Khavda, Gujarat," it added.
After the announcement, shares of Adani Green Energy rebounded 3.31 per cent to Rs 1,837.55 from day's low at Rs 1,778.65, commanding a total market capitalization of more than Rs 2.85 lakh crore. The scrip had settled at Rs 1,808.55 in the previous trading session on Thursday.
Last month, Investec initiated its coverage on Adani Green (AGEL), India’s largest renewable energy company. It said that the company is poised to clock 5 times growth in its installed capacity to 50GW+ by FY30, replicating its growth rate of 5 times to 11GW over FY19-24. It values AGEL at 15 times FY30E consolidated EBITDA, adjusting for the FY29E net debt and PV of minority interest.
"Growth to be led by 30GW/ 11GW installation in Khavda/Rajasthan, where it has access to large resource rich land banks along with evacuation facilities. Strategic capital management, equity infusion by promoters/JV partners and healthy OCF negates the risk of equity dilution while maintaining comfortable D/E," it said with a 'buy' and a target price of Rs 2,515.
Shares of Adani Green Energy have zoomed 2,700 per cent in the last five years, while the stock has gained 125 per cent from its 52-week low at Rs 816 hit on October 26, 2023. However, the stock has corrected nearly 17 per cent from its 52-week high at Rs 2,173.65 hit on June 3, 2024.
AGEL will sign a 25-year PPA (expected in 6 months) and supplies will be from the Khavda asset with staggered project development over 3 years (and connection to ISTS), said Emkay Global Financial Services. "AGEL’s secured PPA capacity is 26 GW and the flat rate of Rs2.7/kWh is also attractive," it added with a 'buy' rating with a target price of Rs 2,550.
Shares of Adani Green Energy rebounded during the trading session Friday after the company announced a power consumption agreement by its wholly owned subsidiary. The company was informed about the agreement through an exchange filing on Thursday.
Adani Renewable Energy Three, a wholly-owned step down subsidiary of Adani Green Energy has entered into power consumption agreement for supply of green power to a commercial and industrial (C&I) customer, said the exchange filing. "The said green power shall be supplied from a new 61.4 MW renewable energy plant, located at Khavda, Gujarat," it added.
After the announcement, shares of Adani Green Energy rebounded 3.31 per cent to Rs 1,837.55 from day's low at Rs 1,778.65, commanding a total market capitalization of more than Rs 2.85 lakh crore. The scrip had settled at Rs 1,808.55 in the previous trading session on Thursday.
Last month, Investec initiated its coverage on Adani Green (AGEL), India’s largest renewable energy company. It said that the company is poised to clock 5 times growth in its installed capacity to 50GW+ by FY30, replicating its growth rate of 5 times to 11GW over FY19-24. It values AGEL at 15 times FY30E consolidated EBITDA, adjusting for the FY29E net debt and PV of minority interest.
"Growth to be led by 30GW/ 11GW installation in Khavda/Rajasthan, where it has access to large resource rich land banks along with evacuation facilities. Strategic capital management, equity infusion by promoters/JV partners and healthy OCF negates the risk of equity dilution while maintaining comfortable D/E," it said with a 'buy' and a target price of Rs 2,515.
Shares of Adani Green Energy have zoomed 2,700 per cent in the last five years, while the stock has gained 125 per cent from its 52-week low at Rs 816 hit on October 26, 2023. However, the stock has corrected nearly 17 per cent from its 52-week high at Rs 2,173.65 hit on June 3, 2024.
AGEL will sign a 25-year PPA (expected in 6 months) and supplies will be from the Khavda asset with staggered project development over 3 years (and connection to ISTS), said Emkay Global Financial Services. "AGEL’s secured PPA capacity is 26 GW and the flat rate of Rs2.7/kWh is also attractive," it added with a 'buy' rating with a target price of Rs 2,550.