Adani group firms rally after AGM; Morgan Stanley raises Adani Power target

Shares of Adani group firms rallied 3-4 per cent intraday following major announcements on infrastructure expansion by Group Chairman Gautam Adani at the annual general meeting. Shares of Adani Enterprises settled at Rs 3,068 apiece, gaining 3.5 per cent. Shares of Adani Ports and Special Economic Zone, Adani Green Energy, Adani Total Gas and Ambuja Cements also ended with gains. However, shares of Adani Power declined 0.78 per cent to close at Rs 229.59 apiece.

In its report on Adani Power (APL), Morgan Stanley (MS) revised its target price upwards to Rs 275 per share from Rs 173 earlier — a premium of over 19 per cent to Wednesday’s closing price. It maintained an overweight rating. MS has estimated an earnings before interest, taxes, depreciation and amortisation (EBITDA) compound annual growth rate (CAGR) of 23 per cent for the company over FY26-FY32E.

“APL will make annuity returns on most of its 24 GW under-construction capacity (EBITDA: Rs 3.5/kWh and fuel pass-through). This change must be viewed in the context of its execution track record on commissioning (versus peers), strong leverage position (versus history and peers) and the benefits of pre-ordering equipment,” it noted.