Adani Green Energy stock has potential to surge 75%: Jefferies

Adani Green Energy Limited (AGEL) stock has the potential to see an increase of 75 per cent, with capacity expansion and a rise in power demand, the investment banking firm Jefferies has estimated. If the Jefferies projection of a 75-per cent increase happens, the stock price of AGEL could reach Rs 3,180.

On Monday morning, the AGEL share surged 1.5 per cent to reach Rs 1,830. Jefferies predicted a 17 per cent rise from the market’s previous close, and pinned the price at Rs 2,130 apiece.

Jefferies noted that net profit of the company in quarter one of the current fiscal year 2024-’25, or FY25, surged 95 per cent on a year-on-year basis to reach Rs 629 crore, marking a twofold increase. The company’s power capex investments can be estimated to grow around 2.2 times to $280 billion from fiscal 2024 to fiscal 2030, Jefferies said.

The positive projection of a massive 75-per cent rise in the AGEL stock, according to Jefferies, primarily rests on the fact that the company is on track to achieve 50GW capacity by 2030 as well as the conglomerate’s ambitious renewable energy plant at Khavda in the Kutchh region of Gujarat.

The Gujarat Hybrid Renewable Energy Park at Khavda spans 538 sqkm and is around five times the size of Paris. Located very near the Indo-Pakistan border, the park is expected to generate 30GW renewable electricity from solar panels and wind turbines once operational by 2029. AGEL currently has a capacity of generating 2GW with plans to add 6GW capacity in FY25.

The Squirrels had reported last week how shares of AGEL had surged around 2 per cent on Wednesday after the company declared that its wholly-owned stepdown subsidiary Adani Renewable Energy Forty One has operationalised a 250 MW wind power project at Khavda. After clearances, the project commenced power generation the same day. With this, the company's achieved India’s largest operational portfolio of 11,184 MW.

The Squirrels had reported in April 2024 how multi-billionaire Gautam Adani’s group transformed the far-flung wasteland near the Pakistan border in Gujarat’s Khavda region into the largest renewable energy park of the world. Although barren and saline-heavy, the region is second only to Ladakh as far as solar radiation power is concerned, and wind here blows at five times the normal speed.