Ventura Securities Sets Bullish Target For Adani Enterprises Stock

Brokerage firm Ventura Securities Ltd has set a bullish target of Rs 3,801 for Adani Enterprises Ltd (AEL), predicting a potential upside of 57.8% over the next 24 months. Currently, AEL’s stock is trading at Rs 2,409 per share.

In a more optimistic scenario, Ventura’s target price for the stock rises to Rs 5,748, representing an upside of 138.6%. The firm has based its projections on expected revenue growth and improved profitability over the next few years.

The brokerage noted, “We have assumed revenue of Rs 1,66,615 crore (FY24-27E CAGR of 20 per cent) and an EBITDA margin of 20 per cent at an EV/EBITDA of 23.4X, which will result in a bull case price target of Rs 5,748.”

Additionally, Ventura forecasts strong growth for Adani Enterprises, with its consolidated revenue projected to grow at a compounded annual rate of 17.5% from fiscal years 2024 to 2027, reaching Rs 1.56 lakh crore.

“EBITDA and net margins are to expand by 647 basis points to 18.3 percent and 255 bps to 5.9 percent, respectively,” it asserted, adding that “return ratios – RoE and RoIC – are likely to improve by 563 bps to 14.5 percent and 99 bps to 11.3 percent, respectively.”

Adani Enterprises will fuel its growth through the expansion of its airports, solar, wind turbines, and copper businesses.

The company plans to invest Rs 6.5-7 lakh crore over the next decade, focusing on airports, data centers, copper, and green hydrogen, Ventura however noted.

It further added, “This expansion will be funded through debt, which is expected to lead to an increase in the company’s debt-to-equity and debt-to-EBITDA ratios over the next few years.”

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