Ventura

Link – https://www.ventura1.com/Research/StockIdeaPg.aspx

The power transmission & distribution (T&D) sector in India is set for expansion, supported by favorable policy environments, substantial capacity enhancements, and increased openings for private sector involvement via tariff-based competitive bidding (TBCB). Adani Energy Solutions Ltd (AESL) stands out as the premier private T&D entity, managing 20,422 circuit kilometers (ckm) of transmission lines and 54,600 MVA of power transformation capacity. The company has set a goal to establish 30,000 ckm of transmission lines by 2030, capitalizing on both organic & inorganic growth prospects.

We value AESL at 17X EV/EBITDA and recommend BUY with a target price of INR 1,600, which represents an upside potential of 50.4% from the CMP of INR 1,064.