Target: ₹990
CMP: ₹799.75
Adani Energy Solutions: Mirae Asset expects that backed by robust orderbook of ₹59,000 crore, the transmission asset base will triple in the coming 4-5 years. In the light of strong transmission tendering, AESL will continue to expand its orderbook basis the 28 per cent market share recorded in FY25 in TBCB bids. Expects strong EBITDA expansion driven by India’s renewable energy (RE) target, 20-25 per cent market share in ₹84,000 crore near term transmission bids and an ₹59,000 crore project pipeline.
The distribution business in AEML and MUL is a ‘Cash Cow’ for AESL. The company is best positioned to capture the Discom privatisation opportunity and expand through parallel licensing into newer geographies, which are attractive from the C&I perspective. The company is likely to benefit significantly from the UP privatisation and traction in the Navi Mumbai parallel license.
The company is a front-runner in the smart metering space and currently leads the meter installation pace in the industry with about 27,000 meter installations per day. The reports highlight the perennial nature of opportunity due to embedded limitations or barriers like the life of meter, Discom’s operational dependence on AMISP, organic growth in the existing orders, and unique software solutions that are hard to replace and replicate.
Initiated coverage with a Buy valuing the company using multiple based method arrived at a price target of ₹990.
Published on August 4, 2025
