Motilal Oswal starts Adani Enterprises at Buy, sees 25% upside on airport and ANIL growth
Motilal Oswal Financial Services has initiated coverage of Adani Enterprises with a Buy rating and ₹3,880 target price, implying 25% upside from ₹3,143.40. The brokerage expects airport ramp-up, Adani New Industries expansion and road tolling to drive a 29% EBITDA CAGR between FY26 and FY29E.
What happened
Motilal Oswal initiated Adani Enterprises with a Buy rating, citing airport ramp-up, ANIL expansion and road tolling. It forecasts FY26-FY29E EBITDA growth of
Key facts
- 39% YTD share gain
- ₹3,143.40 share price
- ₹3,880 target price
- 25% implied upside
- FY26 EBITDA ₹140 billion
- FY29E EBITDA ₹299 billion
- 29% EBITDA CAGR
- 22% revenue CAGR
- 82% PAT CAGR
Why this matters
The coverage thesis reinforces Adani Enterprises’ conglomerate model, with airport infrastructure, clean-energy adjacencies and toll-road assets creating potential platforms for partnerships and expansion.
What to watch
- Quarterly airport passenger growth, airport EBITDA margin and non-aeronautical revenue per passenger.
- ANIL order wins, offtake agreements, commissioning dates, utilization rates and announced capex.
- Net debt, interest coverage, operating cash flow, free-cash-flow trajectory and any equity or asset-sale financing.
- Road project awards, operational lane-kilometres, traffic/toll growth and collection efficiency.
- Progress toward FY26 EBITDA of ₹140 billion and the pace required to reach ₹299 billion by FY29E.
- Regulatory developments affecting airport tariffs, toll revisions, renewable incentives, hydrogen policy and project approvals.
- Rating-agency commentary, bond spreads and institutional ownership changes following the coverage initiation.
- Accelerate airport monetization through higher retail, duty-free, advertising, cargo and premium-service revenue per passenger.
- Prioritize ANIL projects with contracted offtake, policy support and clearer near-term cash generation over uncontracted capacity expansion.
- Use road tolling cash flows and potential infrastructure asset recycling to fund growth while containing consolidated leverage.
- Increase disclosure on segment EBITDA, capex, project commissioning milestones and funding sources to narrow the conglomerate valuation discount.
- Explore strategic partnerships, project financing and minority stake sales in capital-heavy new-energy ventures to reduce parent-level funding burden.