Suryaa Business Desk: Surya Corporate & Energy Desk, Ahmedabad/Mumbai: Domestic renewable energy giant Adani Green Energy Limited (AGEL) posted strong September quarter (Q2)... Surya Corporate & Energy Desk, Ahmedabad/Mumbai: Leading domestic brokerage firm ICICI Securities has expressed a positive outlook on domestic renewable energy major Adani Green Energy Limited (AGEL) reporting strong financial results for the September quarter (Q2). The brokerage expects the stock to register an upside of around 14 percent compared to the current market price as the company's operating efficiency improves and its solar and wind power generation capacity expand significantly.
Impressive growth in revenue and operating profit: Adani's Green Energy Power Supply division achieved better EBITDA margins in the second quarter. Power sales have strengthened due to the integration of new projects and continuous operational capacity enhancement. Market experts analyze that the strong growth in profit before tax (PBT) despite the impact of financial costs and quarterly depreciation reflects the capital efficiency of the company.
Revised Target Price and Rating: ICICI Securities has revised the target price on this stock keeping a positive rating in view of growing opportunities in renewable energy sector, expansion of Battery Energy Storage Systems (BESS) and progress of mega projects like Khawda. It is said that this share is likely to gain up to 14 percent from the current trading levels. The report clarifies that long-term government support for the green energy sector and the company's reliable Power Purchase Agreements (PPA) will be key drivers of Adani Green's growth.