Jefferies met the management of four Adani Group companies; check key triggers and targets

Shares of Adani Group companies are expected to remain in focus after global brokerage Jefferies met the management teams of four key group entities and reiterated its bullish stance on the stocks.

The brokerage has cited strong growth visibility, capacity expansion plans and improving execution across businesses.

Adani Energy Solutions

Jefferies maintained its 'Buy' rating on Adani Energy Solutions with a target price of ₹1,665.

Following its interaction with management, the brokerage said that India's power transmission opportunity remains strong, with the near-term bidding pipeline estimated at ₹1.5 lakh crore, higher than the ₹54,000 crore opportunity available at the end of FY25.

The company is currently executing transmission projects worth ₹71,800 crore, reflecting a 20% increase from a year ago. Management also indicated that the smart-metering business is scaling up steadily and is expected to emerge as a key growth engine.

Jefferies believes these factors position the company for sustained double-digit growth over the medium term.

Adani Green Energy

Jefferies retained its 'Buy' call on Adani Green and assigned a target price of ₹1,435.

Management reiterated confidence in its plan to increase renewable energy capacity from 19.3 GW in FY26 to 50 GW by 2030, including the addition of 5 GW of pumped storage capacity.

The brokerage said that battery energy storage remains a major strategic focus, with the company targeting storage capacity of more than 10 GWh by FY27, compared to around 3 GWh currently. The expansion is expected to enhance earnings potential by enabling the sale of electricity during peak-demand hours.

Jefferies also pointed out that the stock is currently trading at a 56% discount to its January 2023 peak one-year forward EV/EBITDA multiple, which it believes leaves room for valuation re-rating as execution milestones are achieved.

Adani Power

Jefferies reiterated its 'Buy' rating on Adani Power with a target price of ₹255.

Management reaffirmed plans to expand generation capacity by 2.3 times to 42 GW by FY32, while emphasising the continuing importance of thermal power in meeting India's baseload electricity requirements.

According to the brokerage, 56% of the company's upcoming 23.7 GW capacity addition is already secured through long-term power purchase agreements (PPAs), with management targeting complete coverage. This is expected to reduce earnings volatility and improve project visibility.

Jefferies expects Adani Power to deliver an EBITDA CAGR of around 23% between FY26 and FY30, while turning free cash flow positive by FY30.

Ambuja Cements

Jefferies maintained its 'Buy' rating on Ambuja Cements and set a target price of ₹595.

Management acknowledged that recent performance has fallen short of internal expectations, largely due to a slower-than-anticipated turnaround of acquired businesses. However, it reiterated its target of achieving ₹500 per tonne in cost savings over the next two years.

The brokerage said that management expressed differing views on the significance of branding in the cement industry but added that a visible improvement in operating costs and profitability will be crucial for restoring investor confidence in the stock.