Stock Snapshot
Price Performance
Recommendation Rationale
Strong growth outlook supported by significant investments and market opportunities in transmission and smart metering.
Basis of our Recommendation
Adani Energy Solutions Limited (AESL) is positioned for strong growth driven by significant investments in its transmission and smart metering businesses, with a robust project pipeline and ambitious ESG targets. The company is expanding its transmission network and capitalizing on a large untapped market for smart meters. However, it faces risks from intense competition and potential execution challenges.
Why We Like This Stock
- Substantial investments in transmission and smart metering segments, with a robust order book of 2.46 Cr meters
- Ambitious ESG targets aiming for 60% renewable power procurement by FY27
- Strong growth trajectory supported by a large portfolio of under-construction transmission projects
Things To Watch Out For
- Intense competition in the T&D and smart metering sectors
- Execution challenges related to environmental clearances for transmission projects
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 16,607 | 23,767 | 27,588 | 35,362 | 44,129 |
| Profit Before Tax (Cr.) | 1,640 | 2,577 | 3,115 | 4,385 | 5,371 |
| PBT Margin | 9.9% | 10.8% | 11.3% | 12.4% | 12.2% |
| Net Profit (Cr.) | 1,102 | 2,622 | 2,772 | 3,755 | 4,599 |
| EPS | 8.7 | 23.0 | 22.2 | 31.3 | 38.3 |
Company Overview
Show Company Profile
Adani Energy Solutions Limited, together with its subsidiaries, generates, transmits, and distributes power in India. It operates through the Transmission; Distribution; Smart Meter; Trading; and Others segments. The company is involved in the establishment, commission, setting up, operation, and maintenance of electric power transmission systems; development, ownership, and operation of transmission lines; trade of bullion and other commodities; and laying of optical ground wire fibers on transmission lines to telecom solutions to telecom companies, internet service providers, and long-distance communication operators. It also provides electricity meters to optimize real-time insights of electricity usage. The company was formerly known as Adani Transmission Limited and changed its name to Adani Energy Solutions Limited in July 2023. The company was incorporated in 2013 and is headquartered in Ahmedabad, India. Adani Energy Solutions Limited operates as a subsidiary of S.B. Adani Family Trust.