Mumbai, February 5 (IANS). Global brokerage firm Morgan Stanley has started coverage of Adani Energy Solutions shares and has given a target price of Rs 1,133 with ‘overweight’ rating.
The brokerage firm says AESL will benefit from the long-term expansion of the power grid in India. Also said that there is a possibility of transmission investment of Rs 10 lakh crore in the country in the next decade.
Government support on smart metering, including subsidies, said the brokerage report on the company’s distribution business. This will increase private sector participation.
The global brokerage firm also highlighted AESL’s strong execution record, citing timely and cost-efficient project delivery. The firm has achieved an integrated presence across transmission, distribution and smart metering, positioning it as a complete grid infrastructure.
Morgan Stanley describes Adani Energy Solutions as a leading private sector company in transmission and distribution, with approximately 50 per cent stake in private sector transmission projects, a reach of approximately 33 lakh consumers through the Mumbai and Mundra SEZ distribution areas and a strong presence in smart metering.
The report estimates a CAGR growth of 21 per cent in EBITDA between FY 2025 and 2030 and EBITDA is expected to reach approximately Rs 2,600 crore by FY 2030. This growth is expected to be driven by win-win of transmission projects, regulated distribution capital expenditure and execution of smart metering order book.
The report identifies transmission as the strongest growth driver in the near to medium term, supported by the existing order book of approximately Rs 7,800 crore till Q3FY26.
Morgan Stanley estimates that AESL could win about 20 per cent of the new TBCB projects, representing a potential opportunity of Rs 20,000 crore per annum.
The report highlights the opportunities arising from parallel licensing in the distribution sector, in which AESL aims to achieve 20 per cent market share.
The company’s regulated asset base is expected to grow at a CAGR of approximately 11 per cent, supported by annual capex of approximately Rs 1,600 crore.
In smart metering, AESL aims to achieve around 20 per cent market share. The majority of its order book of 24.6 million meters is expected to be completed by FY2027, with smart metering contributing about 9 per cent to FY2028 EBITDA, excluding non-IFRS adjustments.
Morgan Stanley covers Adani Ports & SEZ and Adani Power and rates both as positive, reflecting the global brokerage firm’s confidence in their business models.
–IANS
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