Adani Energy Solutions, Adani Total Gas: 2 Adani firms to share Q4 results on Tuesday, April 30

Two Adani group firms namely Adani Energy Solutions Ltd (erstwhile Adani Transmission Ltd) and Adani Total Gas Ltd will be announcing their March quarterly results on Tuesday, April 30. The latter would also be considering paying dividend for FY24.

In its Q4 update earlier this month, Adani Energy Solutions said it received LOA for additional order quantity of 1.7 million meters from MSEDCL with a revenue potential Rs 2,100 crore.  The total smart metering under-construction pipeline stands at 22.8 million smart meters, consisting of nine projects with a contract value of Rs 27,200 crore.

In the distribution business, Adani Energy Solutions sold 2,226 million units in Q4FY24 against 2,100 million units last year on account of uptick in energy demand. The share of renewable power supplied to Mumbai circle stood at 35 per cent at the end of March 31, 2024, and on track to achieve 60 per cent by FY27, Adani Energy Solutions said.

On the other hand Adani Total Gas this month said a wholly-owned subsidiary Adani TotalEnergies E-Mobility (ATEL), and MG Motor India signed a Memorandum of Understanding (MoU) to strengthen the EV charging infrastructure in India. Along with its Q4 results, Adani Total Gas would also consider dividend, if any, on the equity shares of the company for the financial year 2023-24.

FPIs were largely put on these two shares in the quarter gone by. FPIs owned 13.13 per cent stake in Adani Total Gas in Q4, up 7 basis points over 13.06 per cent in the December quarter. MF holding in the Adani company came in at 0.09 per cent against 0.12 per cent in the third quarter.

In the case of Adani Energy Solutions, FPI holding in this Adani firm stayed unchanged at 17.49 per cent. LIC too did not tinker with its 3 per cent stake in the company on a sequential basis. Retail investors upped stake to 2.86 per cent from 2.78 per cent, BSE data showed

Analysts noted that Adani Energy Solutions has set a goal to establish 30,000 ckm of transmission lines by 2030, capitalising on both organic & inorganic growth prospects. "Strong industry tailwinds and leading position in private tariff-based competitive bidding sector offer significant revenue growth," Ventura Securities said last month.

"We value Adani Energy Solutions at 17 times EV/Ebitda and recommend BUY with a target price of Rs 1,600, which represents an upside potential of 50.4 per cent from the CMP of Rs 1,064," Ventura Securities said during the Mach quarter.

The same brokerage in a note said it is positive on Adani Total Gas' growth story, as it re-initiated its 'Buy' rating on the stock with a revised price target of Rs 1,340 against Rs 3,475 earlier. Ventura said Adani Total Gas' revenue, Ebitda and PAT could grow at a rate of 25.3 per cent, 39.9 per cent and 42.6 per cent, respectively, compounded annually, over the period FY23 to FY26.

Ventura said that Ebitda and profit margin for Adani Total Gas may expand 780 basis and 570 basis points to 27.7 per cent and 17.8 per cent, respectively, during the period mentioned Return ratios ROE and ROIC are set to expand to 26.1 per cent and 31 per cent, it said.