Adani Enterprises Stock: MOFSL Predicts 25% Rally
By Business Desk
Motilal Oswal initiates ‘Buy’ on Adani Enterprises with a Rs 3,880 target, forecasting a 25% upside driven by strong infrastructure growth and diverse business segments.
Motilal Oswal Financial Services (MOFSL) has initiated coverage on Adani Enterprises Ltd. (AEL) with a ‘Buy’ rating. The brokerage set a target price of Rs 3,880, indicating a potential 25% upside from the reference price of Rs 3,110.
MOFSL’s investment thesis centers on AEL’s role as an infrastructure incubator, developing businesses to scale before monetization. This strategic model, combined with AEL’s significant exposure to India’s capital expenditure cycle, is expected to drive sustained value creation.
Key Growth Catalysts
Accelerated earnings growth for AEL is anticipated, stemming from its diverse portfolio. This includes operations in airports, roads, data centers, new energy, mining, copper, and strategic manufacturing.
Significant drivers include the ramp-up of the Navi Mumbai International Airport and capacity expansion at Adani New Industries Ltd. (ANIL). The commencement of tolling on key road projects will also contribute.
The data center business, AdaniConneX, is identified as a major growth avenue. It targets 3 GW by 2030, driven by rising AI adoption and demand for high-density computing infrastructure.
Financial Projections
MOFSL projects consolidated EBITDA to increase from approximately Rs 14,000 crore in FY26 to Rs 29,900 crore by FY29. This represents a compound annual growth rate (CAGR) of roughly 29%.
Over the same FY26-29 period, consolidated revenue is projected to grow at approximately 22%. Consolidated Profit After Tax (PAT) is expected to see a substantial increase of approximately 82%.
The AdaniConneX venture, a 50:50 partnership with EdgeConneX, aims for 3 GW capacity by 2030. This expansion is directly linked to the burgeoning demand for advanced computing solutions.
Potential Headwinds
While assigning substantial value to AEL’s various businesses, MOFSL also highlights key risks. These include potential execution delays and higher-than-expected capital expenditure.
Further concerns involve regulatory changes and a slower-than-anticipated ramp-up of newer business segments. Investors should monitor these factors closely for their impact on projections.