Goal: ₹930
CMP: ₹669.60
Adani Power Options (AESL) is ready to submit strong development in its transmission, distribution, and good meters companies. Transmission EBITDA is more likely to double to ₹7,600 crore by FY27, pushed by India’s renewable power (RE) goal, 20-25 per cent market share in ₹84,000 crore close to time period transmission bid and an ₹54,800 crore venture pipeline.
In distribution, Mundra SEZ demand is ready to surge from 50 MW to five GW, pushing regulated asset base (RAB) to ₹1,500-2,000 crore whereas Mumbai operations would get annual capex of ₹1,200-1,500 crore, which might improve regulated fairness to ₹6,000 crore by FY27. AESL additionally dominates the good meters house with a 17 per cent market share at 23 million meters, sustaining an EBITDA margin of 85 per cent.
We provoke AESL with a Purchase score and a SOTP-based TP of ₹930. Moreover, we attribute an choice worth of ₹196 per share for its upcoming good meter tasks and ₹156 per share for the brand new transmission tasks below nationwide electrical energy plan alternative.
Key dangers embody elevated competitors and the necessity for well timed venture execution.
