6 days ago
MOFSL Sets Rs 3,880 Target for Adani Enterprises
MOFSL is a financial research firm that studied Adani Enterprises.
It recommended buying the company’s shares.
MOFSL set a possible future share price of Rs 3,880.
The shares were trading at Rs 3,150.60 when the report was published.
The firm expects the company’s sales and profits to grow strongly through FY29.
It said new projects, airports, roads, and copper businesses could help this growth.
MOFSL also expects the company’s debt compared with its operating earnings to decrease by FY29.
However, the company still plans to spend heavily on expansion.
MOFSL initiated coverage of Adani Enterprises with a BUY rating and a Rs 3,880 sum-of-the-parts target.
The target implies roughly 25% upside, while the stock traded at Rs 3,150.60, up 1.24%, at 10:23 a.m.
MOFSL cited Adani Enterprises’ diversified expansion, incubated businesses, scale, and market leadership as key strengths.
It forecast consolidated revenue, EBITDA, and profit after tax to grow 22%, 29%, and 82%, respectively, from FY26 to FY29.
Key growth drivers include Navi Mumbai Airport, ANIL capacity expansion, toll-road assets, and primary industries such as copper.
- Who
- MOFSL and Adani Enterprises.
- What
- MOFSL initiated coverage with a BUY rating and set a Rs 3,880 target price for Adani Enterprises shares.
- Where
- The report concerns Adani Enterprises shares traded in the Indian market.
- When
- The stock price was reported at 10:23 a.m.; Morgan Stanley’s comparison target was dated July 30.
- Why
- MOFSL expects expansion, new-business contributions, stronger margins, and project commissioning to drive earnings and cash-flow growth.
Bullish Analyst View
Market Target Comparisons
Valuation outlook
Bullish Analyst View
MOFSL sees about 25% upside and values Adani Enterprises at Rs 3,880, citing its portfolio, scale, expansion, and growth prospects.
Market Target Comparisons
Other cited targets were lower or close to MOFSL’s estimate: Morgan Stanley at Rs 3,638, Cantor Fitzgerald at Rs 3,744, and Jefferies at Rs 3,830; the consensus target was Rs 3,773.
Expansion and debt
Bullish Analyst View
MOFSL expects airport, road, ANIL, and copper-related projects to support earnings and forecasts debt leverage to decline by FY29.
Market Target Comparisons
The article notes that Adani Enterprises has a high capex requirement and will fund it through a combination of debt and internal accruals.
Key facts
- MOFSL rating
- BUY
- MOFSL target price
- Rs 3,880 per share
- Reported stock price
- Rs 3,150.60, up 1.24% at 10:23 a.m.
- Consensus 12-month target
- Rs 3,773
- FY26-FY29 revenue growth forecast
- 22%
- FY26-FY29 EBITDA growth forecast
- 29%
- FY26-FY29 PAT growth forecast
- 82%
- Net debt to EBITDA
- 5.4 times in FY26, expected to moderate to 4.5 times by FY29
Quotes
Adani Enterprises
The company referenced as AEL in the article
“We initiate coverage on AEL with a BUY rating and an SoTP-based TP of Rs 3,880. Our recommendation is underpinned by AEL’s market leadership, differentiated portfolio, superior scale, and proven ability to incubate and scale new businesses, positioning it to emerge as one of the world’s leading integrated infrastructure platforms.”
businesstoday.in
Sources
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