Ventura Securities Projects 57.8% Upside for Adani Enterprises Ltd in 24 Months

Mumbai, Dec 28 (NationPress) Prominent brokerage Ventura Securities Ltd has identified a bullish target of Rs 3,801 for Adani Enterprises Ltd's (AEL) stock, suggesting a possible increase of 57.8 percent over the upcoming 24 months.

The share price of Adani Group's leading company is presently trading at Rs 2,409 per share.

In an optimistic scenario, the target price could escalate to Rs 5,748, indicating an upside of 138.6 percent, as noted by the brokerage.

“We anticipate a revenue of Rs 1,66,615 crore (FY24-27E CAGR of 20 percent) and an EBITDA margin of 20 percent at an EV/EBITDA of 23.4X, leading to a bull case price target of Rs 5,748,” stated the brokerage.

According to Ventura’s analysis, Adani Enterprises is poised for robust growth. From fiscal years 2024 to 2027, its consolidated revenue is expected to rise at a compounded annual growth rate of 17.5 percent to reach Rs 1.56 lakh crore.

“EBITDA and net margins are anticipated to grow by 647 basis points to 18.3 percent and 255 bps to 5.9 percent, respectively,” the report indicated, emphasizing that “return ratios – RoE and RoIC – are projected to enhance by 563 bps to 14.5 percent and 99 bps to 11.3 percent, respectively.”

This growth trajectory is expected to be fueled by the company’s expansion into the airport, solar, and wind turbine sectors, alongside revenue contributions from its copper business.

Additionally, the flagship of the Adani Group is aiming for Rs 6.5-7 lakh crore in capital expenditure over the next decade, with a primary focus on airports, data centers, copper, and green hydrogen, as per Ventura's insights.

“This expansion will be financed through debt, which is projected to increase the company’s debt-to-equity and debt-to-EBITDA ratios in the coming years,” it concluded.