Adani Green Energy's stock, after a 60% plunge, shows signs of upward momentum. Emkay Global has set a target price of ₹1500, indicating a potential 72% gain.
Adani Green Stock: Monday, March 17th, witnessed an upward trend in the Indian stock market. The BSE Sensex rose by over 500 points, and the Nifty 50 showed b performance, reaching an intraday high of 22,577. Positive global market sentiment and the upward movement of financial and automobile stocks supported the market. However, the market closed negatively on all but one trading day last week.
Brokerage's Buy Recommendation for Adani Green
Amidst market volatility, brokerage house Emkay Global has recommended a buy for Adani Green Energy, citing b fundamentals and reasonable valuation. The brokerage firm has assigned a 'BUY' rating to the stock with a target price of ₹1,500, suggesting a potential gain of up to 72%.
Adani Green Stock Performance
53% decline in the last six months.
20% decline in the last three months.
52% decline in one year.
Stable performance in the last month.
12% increase in two weeks.
10% increase in one week.
52-week high: ₹2,173.
52-week low: ₹758.
Total market capitalization on BSE: ₹1,43,481 crore.
Why the Brokerage Recommends a Buy?
According to Emkay Global, Adani Green Energy presents a good opportunity for long-term investors due to its attractive valuation and b growth potential. Prolonged and intense monsoon rains in Khavda during FY25 impacted project execution, leading to delays in operational stabilization and limiting the capacity utilization factor (CUF). Furthermore, slower electricity demand growth in the second half impacted merchant rates.
Adani Green's Future Plans
The company is now focusing on storage solutions and Battery Energy Storage Systems (BESS). Recently, Adani Green Energy won a tender for 1.25 GW PSP storage capacity for 40 years from Uttar Pradesh Power Corporation Limited (UPPCL). Additionally, hybrid tenders from MSEDCL and NHPC have strengthened the company's round-the-clock (RTC) renewable energy ecosystem.
Can the Stock Reach ₹2,530?
According to Emkay Global, if a bull run occurs in the market, Adani Green's stock price could reach ₹2,530 per share. However, this would require the company to fully achieve its volume targets by FY29-30.
(Disclaimer: Investment in the stock market is subject to risk. Consult your financial advisor before investing.)
