JM Financial bullish on Adani Green stock, sees 18% upside; here’s why
The capacity expansion is projected to drive robust financial performance. JM Financial expects the company to deliver a CAGR of 29 per cent in revenue, 32 per cent in EBITDA, and 41 per cent in PAT between FY25 and FY28.
- Nov 18, 2025,
- Updated Nov 18, 2025 9:51 AM IST
Brokerage JM Financial has initiated coverage on Adani Green Energy with a 'Buy' rating on the stock, citing the company's dominant position as India's largest RE player. The firm has pegged a 12-month price target of Rs 1,289 per share, implying a potential upside of 18 per cent from the current level of Rs 1,090.
The brokerage said that Adani Green's ambitious goal of achieving 50GW of installed capacity by 2030 is doable. The plan is underpinned by the development of the world's largest 30 GW renewable energy park at Khavda in Gujarat.
JM Financial underscored Adani Green’s strong execution track record, its synergies with other Adani Group companies, and its substantial secured land bank as key enablers in making this target achievable.
The capacity expansion is projected to drive robust financial performance. JM Financial expects the company to deliver a CAGR of 29 per cent in revenue, 32 per cent in EBITDA, and 41 per cent in PAT between FY25 and FY28. EBITDA margins, the report noted, are likely to improve to 83 per cent by FY28.
JM Financial’s optimism is anchored in several structural strengths. The report highlighted that Adani Green has secured an inventory of 2.5 lakh acres of high-quality RE sites and is deploying cutting-edge technologies, including advanced 5.2 MW wind turbines.
The company’s financial resilience, the brokerage added, is supported by predictable cash flows, with 81 per cent of its capacity contracted under 25-year Power Purchase Agreements (PPAs). Its leverage profile is also expected to improve, with the Net Debt/EBITDA ratio seen moderating to 5.3 by FY28.
JM Financial has valued Adani Green at 14x its FY28 estimated EV/EBITDA. While the outlook remains upbeat, the report also flagged company-specific risks, particularly the high capacity concentration in the Khavda region—which houses 30 GW of the 50 GW vision—and potential regulatory challenges that prevented the brokerage from assigning a higher premium.
Brokerage JM Financial has initiated coverage on Adani Green Energy with a 'Buy' rating on the stock, citing the company's dominant position as India's largest RE player. The firm has pegged a 12-month price target of Rs 1,289 per share, implying a potential upside of 18 per cent from the current level of Rs 1,090.
The brokerage said that Adani Green's ambitious goal of achieving 50GW of installed capacity by 2030 is doable. The plan is underpinned by the development of the world's largest 30 GW renewable energy park at Khavda in Gujarat.
JM Financial underscored Adani Green’s strong execution track record, its synergies with other Adani Group companies, and its substantial secured land bank as key enablers in making this target achievable.
The capacity expansion is projected to drive robust financial performance. JM Financial expects the company to deliver a CAGR of 29 per cent in revenue, 32 per cent in EBITDA, and 41 per cent in PAT between FY25 and FY28. EBITDA margins, the report noted, are likely to improve to 83 per cent by FY28.
JM Financial’s optimism is anchored in several structural strengths. The report highlighted that Adani Green has secured an inventory of 2.5 lakh acres of high-quality RE sites and is deploying cutting-edge technologies, including advanced 5.2 MW wind turbines.
The company’s financial resilience, the brokerage added, is supported by predictable cash flows, with 81 per cent of its capacity contracted under 25-year Power Purchase Agreements (PPAs). Its leverage profile is also expected to improve, with the Net Debt/EBITDA ratio seen moderating to 5.3 by FY28.
JM Financial has valued Adani Green at 14x its FY28 estimated EV/EBITDA. While the outlook remains upbeat, the report also flagged company-specific risks, particularly the high capacity concentration in the Khavda region—which houses 30 GW of the 50 GW vision—and potential regulatory challenges that prevented the brokerage from assigning a higher premium.