Adani Green Energy Ltd. (AGEL) is making headlines as it embarks on an ambitious growth trajectory, positioning itself as a leader in the renewable energy sector. With a promising target price of Rs 1,222, Cantor Fitzgerald Research has given AGEL an ‘overweight’ rating, highlighting its robust growth plans. This move comes as India intensifies its commitment to reducing carbon emissions and achieving net-zero targets.

AGEL’s Impressive Energy Portfolio

As the largest renewable energy company in India, AGEL boasts a substantial portfolio of 11.6 GW spanning solar, wind, and hybrid power plants. The brokerage emphasizes that AGEL’s growth prospects make it an appealing investment opportunity. Currently, the company trades at 15.6 times the projected enterprise value-to-Ebitda (EV/Ebitda) for FY 2026, slightly below its competitors, yet with significantly greater growth potential.

Strong Financial Performance and Future Projections

Cantor Fitzgerald’s analysis reveals that from FY 2019 to FY 2024, AGEL’s revenue and Ebitda have experienced remarkable compound annual growth rates (CAGR) of 40.9% and 36.8% respectively. Looking ahead, the brokerage anticipates continued growth, forecasting a CAGR of 21.3% for revenue and 25.9% for Ebitda from FY 2025E to FY 2030E. By the end of fiscal 2030, AGEL’s Ebitda is projected to soar to $3.3 billion, significantly increasing from its current enterprise value of around $24 billion.

Major Expansion Plans

AGEL is still in the nascent stages of its expansion, with plans to boost its operational capacity to over 50 GW by 2030, which represents a fourfold increase from its current capacity. A critical component of this growth strategy is the Khavda renewable energy site in Gujarat, which is set to become the largest facility of its kind globally. The site is projected to grow from 2.4 GW to an astounding 30 GW by fiscal 2030, potentially contributing 6.6% of India’s total energy generation.

Financial Health and Debt Management

In the first half of FY 2025, AGEL reported a net debt of $6.9 billion, showcasing an improving debt-to-Ebitda ratio of 7.14 times. This financial strength provides AGEL with the flexibility to further invest in expansion through organic cash flow, thereby minimizing future dependency on debt.

Conclusion

With its ambitious plans and strong financial indicators, Adani Green Energy is not just a leader in India’s renewable energy landscape; it is also a key player in the global transition towards sustainable energy. As the company continues to expand, it will play a significant role in meeting the country’s energy needs while contributing to environmental goals. For investors looking to capitalize on the renewable sector, AGEL presents a compelling opportunity.