Shares of Adani Green have shown great recovery after the Group stocks were hit by the Hindenburg report last year. In the last six months, the stock has gone up around 100%. Now, analysts at Ventura see the stock continuing the strong run.

The Adani Green Analyst: Analysts at Ventura initiated coverage on the stock with a “buy” rating and a 24-month price target of ₹2,830. The target indicates an around 50% upside from the stock’s last closing price of ₹1,890.95.

The Adani Green Thesis: Ventura in its initiation note said that Adani Green Energy has seen a strong recovery post the “Hindenburg controversy”, with the stock witnessing a substantial rebound of 288% and reaching a current market price of around ₹1,890 per share.

The brokerage firm also highlighted the confidence demonstrated by marquee investors such as GQG and IHC, who increased their stakes in AGEL amidst the stock’s decline. Promoters have also reaffirmed their commitment by injecting ₹9,350 crore through warrants issuance, with a portion already infused at ₹1,481 per share. Additionally, TotalEnergies‘ investment of $300 million (around ₹2,500 crore) in an Adani Green subsidiary further strengthens the strategic partnership between the two entities.

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The energy major’s resilient business model, characterized by long-term Power Purchase Agreements (PPAs) with fixed terms of 25 years, ensures a stable cash flow stream, mitigating external risks, the analysts remarked.

With the addition of 2,848 MW of renewable capacity in the year ended March 24, the Adani Group company boasts the largest operational renewable generation capacity in India, totalling 10,934 megawatts. The company’s ambitious plans to further scale up its capacity to 20 gigawatts by FY26 and 45 gigawatts by 2030 reflect confidence in capturing a “significant share of the renewable energy market.”

Ventura is projecting a revenue CAGR (compound annual growth rate) of 26.5% to ₹19,950 crore, EBITDA CAGR of 38.9% to ₹18,358 crore, and net earnings CAGR of 44.8% to ₹4,262 crore by FY27, with improved margins across key financial metrics.

Price Action: Adani Green’s share price was up 1.01% to trade at ₹1,901 in early trade on Friday.

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