Adani Green Gets ‘Overweight’ Rating from Morgan Stanley
By Business Desk
Morgan Stanley initiates ‘Overweight’ rating on Adani Green Energy with a Rs 1,525 target price, signaling 17.1% upside potential. Read more.
Adani Green Energy Ltd. secured its third bullish analyst coverage this month, with Morgan Stanley initiating an ‘Overweight’ rating on the stock.
The brokerage set a target price of Rs 1,525, suggesting a 17.1% upside from its August 20 closing price.
Key Price Levels
- Morgan Stanley Target Price: Rs 1,525
- Implied Upside: 17.1%
- August 20 Closing Price: Rs 1,301.80
This positive outlook from Morgan Stanley follows similar optimistic calls issued by Axis Capital and Elara Capital earlier in the month.
Morgan Stanley’s bullish stance is underpinned by Adani Green’s extensive scale across clean energy technologies, coupled with improving portfolio quality and robust execution capabilities.
Growth Projections & Drivers
- Projected Revenue CAGR (FY26-FY31): 18%
- Estimated Return on Capital Employed (FY26-FY31): 14%
- Core Renewable Energy EBITDA Margins: Above 90%
The firm highlighted the critical role of execution at scale within India’s expanding renewable energy market, noting Adani Green has more than doubled its capacity over the past two years.
The company’s contracted renewable energy capacity is anticipated to reach approximately 38 GW by FY31 from its current 20.1 GW.
Capacity Expansion Outlook
- Current Contracted Capacity: 20.1 GW
- Projected Contracted Capacity (by FY31): Approximately 38 GW
- Potential Contracted Solar Capacity: 49 GW
Morgan Stanley also identified significant opportunity in the increasing power demand from AI-driven data centers, estimating India’s data center capacity could reach around 10.5 GW by FY31.
Adani Green is further positioned to benefit from Adani Enterprises’ plan to develop 3 GW of data center capacity by 2030, creating additional avenues for its renewable energy arm.
Analyst Consensus
- Total ‘Buy’ Ratings (Bloomberg data): 10
- 12-Month Consensus Target Price: Rs 1,570.45
- Implied Potential Upside: 20.6%
The consistent positive analyst coverage underscores Adani Green Energy’s strong market position and future growth prospects in the renewable sector.