ICICI Securities has maintained its “buy” call on Adani Energy Solutions (AESL) with a revised target price of Rs 1,101, down from Rs 1,318 earlier. The company’s current market price is Rs 737.2. AESL is a Large Cap company operating in the Power sector and has a market capitalization of Rs 88276.25 crore.
The company reported its Q3FY25 numbers, which showed revenue of Rs 53.7 billion, EBITDA of Rs 16.6 billion, and net profit of Rs 6.25 billion, with a notable reversal of net deferred tax liability of Rs 1.85 billion. AESL’s transmission pipeline has zoomed 3x in the last 12 months, and the company has won five new transmission projects worth Rs 250 billion. It also has a smart meter pipeline of 22.8mn with estimated EBITDA potential of Rs 20 billion.
The company’s distribution business continues to perform well, with energy demand up 3% to 30% YoY in the Mumbai circle and Mundra Utility. Despite a 5.65% decline in Q3FY25 total income from the previous quarter, the company’s net profit after tax (PAT) showed a significant jump of 24.38% from the same quarter last year.
ICICI Securities maintains a “buy” rating on AESL, driven by its solid Q3 performance, strong growth prospects, and attractive valuations. The analyst expects the company to continue delivering strong earnings growth, driven by its transmission business and smart meter pipeline. Promoters hold a significant 69.94% stake in the company, while FIIs own 17.34% and DIIs hold 5.85%.