adani Energy Solutions Limited (AESL) has recently secured two new transmission projects worth Rs 28,455 crore related to renewable energy park in Rajasthan. One of the major projects among these is the Bhadla-Fatehpur high voltage direct current (HVDC) project worth Rs 25,000 crore. This development is significant for the adani Group as it has increased the company's total order book to Rs 54,700 crore.
Project information
These new transmission projects are aimed at strengthening India's energy infrastructure and effectively transmit electricity generated from renewable energy sources. The Bhadla-Fatehpur HVDC project is particularly important as it will use high-capacity power transmission technology, which will reduce energy loss and increase efficiency.
Market dominance
adani Energy Solutions is already one of India's largest power transmission and distribution companies. With these new projects, the company aims to further strengthen its dominance in the sector. Experts believe that through these projects, adani Energy Solutions will not only get financial benefits, but it will also prepare the company for long-term growth.
Returns can be up to 62 percent
Global brokerage firm Jefferies has maintained a 'buy' rating on adani Energy Solutions and has projected a 62 per cent growth in the stock from a 12-month perspective. According to Jefferies, the risk-to-rewards ratio for the company is favorable, with an upside to downside ratio of 6.58:1.
adani Energy Solutions plans to commercialize transmission projects worth more than Rs 274 billion in the coming years. Along with this, the company has projected 16% revenue and 31% EBITDA compound annual growth rate (CAGR) from FY24 to FY27.
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