Adani Group, the largest private player in transmission and the second-largest in the smart meter sector, has received a strong 'Buy' recommendation from a leading brokerage firm. The stock is expected to see nearly a 40% upside from its trading price on Tuesday.

Stock Price Overview:
Adani Energy Solutions Limited, with a market capitalization of ₹1,11,959.54 crores, opened at ₹934.95 per share during Tuesday’s early trading session.

Brokerage Recommendation:
ICICI Securities, one of India’s top brokerage firms, has issued a 'Buy' call on Adani Energy Solutions Limited with a target price of ₹1,318. This suggests a potential upside of approximately 40% compared to Tuesday’s opening price of ₹934.95.

The ICICI Securities report emphasizes several factors that contribute to this optimistic outlook. Adani Energy Solutions is a dominant player in the private transmission sector, managing transmission assets worth ₹2,60,000 crores in project value. The company has also expanded into the distribution business by acquiring Mumbai DISCOM’s operations.

In addition, Adani Energy has recently made strides in the smart metering sector, securing contracts that mark its entry into this growing market. The company has also obtained trading licenses, positioning itself as a complete power solutions provider for both commercial and industrial clients.

ICICI Securities projects the company’s EBITDA to grow at a 32% CAGR between FY24 and FY27, increasing from ₹5,800 crores to ₹13,200 crores. This growth is expected to be driven by ₹3,000 crores from new transmission bids, ₹4,000 crores from smart meters, and ₹500 crores from distribution activities.

Financial Highlights:
For Q1FY25, Adani Energy Solutions reported a net loss of ₹1,190.66 crores, compared to a net profit of ₹181.98 crores in Q1FY24. However, the company’s revenue from operations grew by 46.78%, rising to ₹5,378.55 crores from ₹3,663.9 crores during the same period last year.

About the Company:
Adani Green Energy Limited, a key player in India's renewable energy sector, currently boasts a project portfolio of 20,434 MW. The company operates in 11 states and has secured long-term Power Purchase Agreements (PPAs) with both central and state government entities. It currently has 5,410 MW of operational projects and 15,024 MW under construction.