Adani Power, Adani Ports, Adani Green: Adani Group stocks rally; Jefferies flags growth drivers

Shares of Adani Group companies were in focus on Friday, September 18, with Adani Power, Adani Ports and Adani Energy Solutions among the stocks drawing attention after Jefferies highlighted several growth drivers across the group’s infrastructure and energy businesses.

The investment bank, in its India Forum, pointed to capacity expansion, strong transmission and port outlook, rising logistics and trading opportunities, and improving cash-flow prospects as key themes for the companies.

Adani Ports

Jefferies notes the company remains confident of achieving its 1 billion tonne cargo target by 2030, implying a 16% CAGR versus Jefferies’ estimate of 13%, driven by organic growth in domestic ports and the ramp-up of international ports.

Integrating technology into its strong port infrastructure remains a focus area, while logistics is also seen as a growth enabler for the ports business.

The balance sheet remains strong, with the company potentially turning net cash by FY31E, indicating room for growth capex.

Capital allocation remains a key focus area.

Adani Power

Jefferies said that the company's management reiterated its target of expanding capacity 2.5x to 45 GW by FY32.

Of the upcoming 23.7 GW capacity, 56% is already locked in under long-term power purchase agreements (PPAs), with the company aiming to tie up 100%, which would lower the risk profile further.

Jefferies believes Adani Power could see a 22% EBITDA CAGR over FY26-30E and turn free cash flow positive by FY30E from negative levels currently.

Adani Energy Solutions

Jefferies said that the firm's management remains upbeat on the prospects of its trading business and highlighted that India's transmission outlook remains robust.

The company reiterated its guidance for a medium-term annual capex run-rate of ₹20,000-25,000 crore.

Smart meters and the trading business are ramping up well and are expected to be key growth drivers going forward.

Adani Green Energy

Jefferies highlighted that the company’s management remains confident of adding 5 GW of capacity in FY27E, while aligning capacity addition timelines with transmission infrastructure to mitigate curtailment risk.

Plans to ramp up Battery Energy Storage System (BESS) capacity from 3.6 GWh currently to more than 10 GWh by FY27E remain on track. Capacity tie-up with Adani Energy Solutions caps merchant upside, though it improves earnings predictability.

How stocks were performing in early trade

At 09:27 AM, shares of Adani Ports and Special Economic Zone were trading 0.52% higher at ₹1,747.30 apiece on the NSE, while Adani Power was up 0.52% at ₹207. Adani Green Energy traded 1.60% higher at ₹1,294.60, while Adani Energy Solutions was up 1.20% at ₹1,403.40 on the NSE.

Among other group stocks, Adani Enterprises was up 0.51% at ₹2,938. Adani Total Gas traded 4.40% higher at ₹612.80 on the NSE; Ambuja Cements was up 0.4% at ₹384.80, while ACC shares were trading at ₹1,246 apiece on the NSE, up 1.10%.