New Delhi,sep 20
Adani Energy Solutions Limited (AESL) is an attractive player in the rapidly expanding energy markets in India, and it offers growth unlike any other publicly traded utility or energy company across US, Europe, or Asia, asserted investment solutions provider Cantor.AESL has a diversified portfolio that includes transmission assets, distribution assets, and a smart metering business, with an enterprise value of USD 18.5 billion.Cantor in a report forecast that the Adani Group company’s total revenue will grow at a CAGR of 20 per cent from 2023-24 to 2026-27 and adjusted EBITDA to grow at a CAGR of 28.8 per cent. In comparison, the revenue of peers growing at low single digits and EBITDA at mid-single digits. “Yes, AESL is more expensive on a multiple basis, but is also growing meaningfully faster than its peers. Secondly, we believe AESL is a more diversified business. We expect its transmission business will see strong growth as it completes the nine projects it has recently been awarded over the next 18-24 months (and we expect it to win more contracts over the coming years),” the Cantor report asserted.While Cantor sees robust growth over the next four years, it also believes AESL will continue to outgrow peers over the next decade.”This is a result of India being still underdeveloped relative to more mature markets, and as it develops and uses/needs more electricity, AESL’s transmission and distribution businesses will stand to benefit,” the Cantor report read.Following a recent capital raise, AESL is now well-funded to drive growth across all three major segments, it added.Cantor said distribution business should be able to grow at double-digit rates as it continues to add to its regulatory asset base (RAB).
