Updated February 14th, 2024 at 11:11 IST

Jefferies expects Adani Enterprises EBITDA to double from FY23 to FY26

According to Jefferies, with new businesses of Airport and Green Hydrogen, Adani group’s EBITDA is expected to grow further

Reported by: Business Desk
Adani Enterprise Limited | Image:Facebook Photo
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Leading brokerage Jefferies has assigned a buy rating for Adani Enterprise Limited (AEL) on Tuesday. The brokerage maintained the buy rating with a target price of Rs 3800, an upside of 20 per cent from the current stock prices. The brokerage expects Adani Enterprise’s EBITDA to double from FY23 to FY26 and grow above 3x by FY28. 

“We expect AEL's EBITDA to double from FY23 to FY26 and grow 3x+ by FY28. We build the contribution of new biz scaling from 40 per cent of consol EBITDA (FY23) to 75 per cent by FY26 and 85 per cent by FY28,” the report by the brokerage stated.

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According to Jefferies, with new businesses of Airport and Green Hydrogen, Adani group’s EBITDA is expected to grow further. “We expect EBITDA to grow ~3x over FY24- FY28. 

Jefferies also added that AEL is riding on the strong Industry tailwinds in New Energy/ sustainability, Airports, Infra, digitalisation, and import substitution in India,” the brokerage said on Tuesday. 

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The brokerage also highlighted that the balance sheet of Adani Enterprises Limited is well-placed to take up the rise in capex.  With the company venturing out into new areas, the capex by AEL is expected to go to $ 5-7 billion between FY24 and FY28, against the estimated capex of $3-3.5 billion in FY24.

The report also highlights key risks that include delay in project execution, and re-emergence of leverage issues. 

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Published February 13th, 2024 at 21:57 IST