Jefferies Raises Outlook on Adani Energy Solutions' Transmission Business, SBI Mutual Fund Acquires Stake

Adani Energy Solutions Stock Declines Despite Jefferies' Bullish Stance

Shares of Adani Energy Solutions Ltd fell on Monday, erasing the previous session's sharp gains, even as global brokerage Jefferies reiterated its bullish stance on the stock. The stock was trading at Rs 1,558.9 in early session, down 1.3 percent from Friday's close of Rs 1,578.8.

The decline comes despite SBI Mutual Fund's acquisition of a stake in the company worth nearly Rs 958 crore through block deals in the previous session. This significant investment has contributed to the stock's impressive performance, with Adani Energy Solutions gaining about 73 percent over the past year. In contrast, the Nifty 50 has declined by 8.1 percent during the same period.

Jefferies maintained its Buy rating on Adani Energy Solutions stock with a target price of Rs 1,665 per share. The brokerage highlighted the company's strong outlook, describing Adani Energy Solutions as India's only listed private-sector pure-play transmission and distribution company. The transmission business remains a key growth driver, with Jefferies noting that the transmission bidding pipeline currently stands at about Rs 1.5 lakh crore, compared to awards worth Rs 54,000 crore in FY25.

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Jefferies also emphasized the company's project execution pipeline, which has grown by 20 percent year-on-year to Rs 71,800 crore. The brokerage expects double-digit growth over the medium term, driven by expanding opportunities in transmission infrastructure and distribution modernization, particularly the adoption of smart meters.