New Delhi: Jefferies, a prominent US-based investment bank, has recommended ‘BUY‘ for four companies within India’s Adani Group following a stellar fiscal year that saw the group’s EBITDA rise by 40%. The group also achieved a multi-year low in leverage, indicating a stronger financial stance amidst aggressive expansion plans, including a projected USD 90 billion capital expenditure over the next decade.
The investment firm’s report highlighted the significant recovery and expansion of Adani Group after overcoming challenges from a negative short-seller report in late FY23. “During FY24, the group focused on containing debt, reducing founders share pledge. Total group EBITDA grew 40% year-on-year in FY24; the group raised fresh funds from equity, strategic investors, promoter increased stake in group companies, debt and group market cap rebounded,” the report noted. “The group is back on expansion spree and eyeing USD 90 billion capex over next decade.”
The companies benefiting from Jefferies’ bullish outlook include Adani Enterprises, Adani Ports, Adani Energy Solutions, and Ambuja Cements. Each company is engaged in significant projects that are pivotal to the group’s growth strategy. Adani Enterprises is set to commence Green Hydrogen production by FY27 and expects to commission the Navi Mumbai Airport by March FY25. Ambuja Cements is focused on doubling its cement capacity and scaling up its EBITDA to industry-leading levels. Adani Ports has outlined a five-year business plan targeting an 18% EBITDA CAGR from FY24 to FY29, aiming to handle 1 billion metric tons of cargo by 2030. Furthermore, Adani Green Energy has revised its 2030 power capacity target up from 45 GW to 50 GW, including plans for 5 GW of pumped hydro.The Jefferies report also emphasized Adani Group’s commitment to the ‘Make in India’ and ‘Aatmanirbhar Bharat’ initiatives, noting that every Suzlon turbine is manufactured domestically, supporting a robust local manufacturing ecosystem and contributing to a greener world.
As Adani Group continues to expand and diversify its operations across crucial sectors of the Indian economy, the endorsements by Jefferies highlight the group’s resilience and strategic direction, positioning it for further growth and success in the coming years.
