New Delhi: Adani Energy Solutions Ltd (AESL), power transmission utility of the Adani group, is valued at $18.5 billion at enterprise level and a strong business growth is likely to propel a 29 per cent compounded growth in its pre-tax profits over the next three years, a report said.
AESL has a diversified portfolio that includes transmission assets, distribution assets, and a smart metering business.
“With an enterprise value of $18.5 billion, we believe AESL to be a very attractive way to play the rapidly expanding energy markets in India,” global brokerage Cantor Fitzgerald said, initiating coverage of the company.
It believes AESL offers growth unlike any other publicly traded utility/energy company across US, Europe, or Asia. “We forecast total revenue to grow at a CAGR of 20 per cent from FY24 to FY27 and adjusted EBITDA to grow at a CAGR of 28.8 per cent.”
This compares to peers growing revenue at low single digits and EBITDA at mid-single digits.
Stating that it is growing meaningfully faster than its peers, the brokerage said it believes Adani Energy Solutions Ltd is a more diversified business.
It saw robust growth over the next four years as AESL will continue to outgrow peers for at least the next decade.