Motilal Oswal starts Adani Enterprises at Buy, sees 25% upside to ₹3,880
Motilal Oswal has initiated coverage on Adani Enterprises with a Buy rating and a sum-of-the-parts target price of ₹3,880, versus a reference price of ₹3,110. The brokerage cites potential value unlocking across the group’s infrastructure portfolio and incubated businesses.
What happened
Motilal Oswal initiated Adani Enterprises with a Buy rating and Rs 3,880 target, citing its infrastructure portfolio and incubated businesses. It forecasts
Key facts
- Buy rating
- SoTP target price: Rs 3,880
- Potential upside: 25%
- Reference market price: Rs 3,110
- FY26-29 revenue growth forecast: ~22%
- FY26-29 EBITDA growth forecast: ~29%
- FY26-29 PAT growth forecast: ~82%
Why this matters
The SOTP-led Buy call underscores the strategic value of separating, scaling or otherwise unlocking value across Adani Enterprises’ infrastructure assets and newer businesses.
What to watch
- Quarterly revenue, EBITDA and operating-cash-flow delivery versus the implied FY26-FY29 growth trajectory.
- Net debt, interest coverage, refinancing spreads and any rating-agency commentary.
- Announced asset sales, strategic partnerships, IPO plans or other monetization events.
- Airport passenger growth, data-center capacity utilization, renewable-project commissioning and green-hydrogen order or offtake progress.
- Regulatory, legal or governance developments that could affect the group valuation discount.
- Whether additional brokerages initiate or raise coverage, widening institutional ownership and liquidity.
- Increase investor-relations focus on segment-level EBITDA, capital expenditure, project commissioning and return-on-capital milestones.
- Prioritize capital recycling through strategic investors, minority stake sales or listings in mature incubated businesses.
- Use improved equity-market sentiment to optimize refinancing, extend debt maturities and reduce the cost of growth capital.
- Accelerate visible operating milestones in airports, data centers, green hydrogen and other infrastructure platforms to substantiate the sum-of-the-parts thesis.