Shares of Adani Energy Solutions surged following Jefferies’ reaffirmation of a positive outlook, citing stronger transmission prospects, expanded smart metering operations, and a thriving trading segment supported by strategic tie-ups and robust bid pipeline.
Adani Energy Solutions’ shares climbed on Friday after Jefferies reiterated a positive view on the company, pointing to a healthier transmission outlook, better execution in smart metering and a larger contribution from its trading arm. The stock was trading higher through the afternoon, outpacing the broader market, after the brokerage kept its Buy rating and price target of ₹2,060. Business Standard reported that Jefferies sees the combination of a strong bid pipeline and planned medium-term capital spending of ₹200 billion to ₹250 billion as support for double-digit growth.
The brokerage said Adani Energy’s transmission business remains well placed, with the company holding the second-highest share in competitive bidding at 23 per cent. It also highlighted a near-term bid pipeline of about ₹1.1 trillion, up from roughly ₹900 billion a year earlier. Jefferies added that its forecasts assume ₹150 billion of transmission capitalisation in FY27, broadly in line with management guidance.
Jefferies also pointed to a larger and more stable trading business, after recent supply tie-ups with Adani Green and Adani Power. It said a 2.5GW round-the-clock power agreement with MSEDCL has lifted tied-up volumes for the trading segment to 57 per cent in FY28E, compared with 20 per cent at the end of 1QFY27, improving the durability of earnings. The brokerage values the trading business separately at a lower multiple because of lingering uncertainty around long-term profitability.
The latest call builds on a run of operational updates that have already lifted sentiment around the stock. Business Standard reported in June that Adani Energy hit a three-year high after strong execution in transmission and smart metering, including India’s first 10 million smart meters installed by the company. In July, the company said quarterly net profit more than doubled year on year, helped by stronger revenue from transmission, while it also disclosed plans to buy IntelliSmart to deepen its smart-metering franchise. Earlier this year, JM Financial said the company was well placed across transmission, distribution and smart metering, supported by a sizeable order book and a growing portfolio.
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