ICICI Securities initiates Buy coverage on Adani Energy Solutions Stock Of Gautam Adani Adani Group

Adani Energy Solutions Share Price: The stock of Adani Energy Solutions, the power generation and distribution company of Adani Group, can give bumper returns to investors. Brokerage house ICICI Securities has advised investors to buy the stock of Adani Energy Solutions.

Equity Research of ICICI Securities, in its coverage report on Adani Energy Solutions stock, has advised investors to buy the stock with a target of 30 percent upside. The brokerage house has given a target of Rs 1318. And after this report came out, the stock closed at Rs 1040 with a rise of 3.02 percent in the trading session of Tuesday, October 1.

Adani Energy Solutions is the country's largest power transmission company which is running the largest discom. Also, the company has entered the field of smart meters and has become the second largest smart meter company. Adani Energy Solutions had entered this sector with full force by acquiring the Mumbai Discom business. The company had sold 25 percent of Mumbai's distribution business to QIA in the financial year 2019-20. In the financial year 2022-23, the company entered the smart meter business and in the same financial year, Abu-Dhabi based IHC had invested Rs 39 billion in the company.

ICICI Securities said in its report, India is going to invite bids for new transmission assets worth Rs 1.6 lakh crore, which can bring a big opportunity for Adani Energy Solutions. Also, smart meter bidding worth Rs 1.2 lakh crore is going to happen in the next 12 to 18 months. In such a situation, the company sees strong growth opportunities in unregulated business.

Before the Hindenburg Research report comes out in January 2023, the stock of Adani Energy Solutions has made a high of Rs 4236. The stock has declined by nearly 70 percent in 2 years. However, the stock has also given multibagger returns of 363 percent to investors in 5 years.

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