Mumbai, Nov 18 (NationPress) Adani Green Energy has been given a favorable outlook by JM Financial Institutional Securities, which has begun its analysis of the company with a 'BUY' rating and a projected price target of Rs 1,289 per share.

This optimistic perspective is driven by the company’s robust growth pipeline, consistent cash flows, and its ambitious goal to expand renewable capacity to 50 GW by 2030.

A significant portion of this growth will stem from its extensive 30 GW renewable energy park located at Khavda in Gujarat, expected to be the world’s largest renewable energy park, according to the brokerage.

The brokerage believes this bold target is attainable due to Adani Green’s proven execution capabilities, access to premium land holdings across 2.5 lakh acres, and backing from other divisions of the Adani Group involved in transmission, distribution, and infrastructure.

The report also emphasizes that the company has integrated cutting-edge technologies, such as the large 5.2 MW wind turbines, which enhance operational efficiency.

Approximately 81 percent of its current capacity is secured through long-term 25-year power purchase agreements, ensuring stable and predictable cash flows.

Over the last three years, Adani Green has showcased impressive financial results, with revenue, EBITDA, and profit after tax increasing at a CAGR of 30 percent, 36 percent, and 57 percent, respectively.

Its EBITDA margin has strengthened to 79 percent, and net debt levels have improved in relation to earnings, decreasing to 7.4 times by FY25.

Looking ahead, the brokerage anticipates that from FY25 to FY28, the company will maintain robust growth, projecting a CAGR of 29 percent in revenue, 32 percent in EBITDA, and 41 percent in profit, accompanied by an even higher EBITDA margin of 83 percent.

The stock is valued at 14 times FY28 EBITDA, based on an expected run-rate of 28 GW capacity by that year.