Adani Green Energy share price surges 13% in 2 days, Jefferies bullish
Adani Green Energy Ltd. (AGEL), a prominent player in India’s renewable energy sector, has witnessed a remarkable 13% surge in its stock price over the past two trading sessions. This upward trajectory follows a significant development: the Securities and Exchange Board of India (SEBI) has dismissed allegations of stock manipulation and related-party transactions that were previously raised by Hindenburg Research in 2023. The regulatory body’s clearance has not only restored investor confidence but also attracted the attention of global brokerage firms. Jefferies, a renowned international brokerage, has reaffirmed its “Buy” rating for AGEL, setting a target price of ₹1,300 per share, which suggests a potential upside of approximately 27% from the current levels.
Recent Share Price Movement
Over the past two trading sessions, AGEL’s stock price has experienced a notable increase, rising by 13%. On September 22, 2025, the stock surged by 8% to reach ₹1,115, marking a significant rebound from previous lows. This uptick can be attributed to the SEBI’s recent clearance of the Adani Group, which has alleviated concerns among investors and analysts alike. The dismissal of the allegations has led to a renewed sense of optimism in the market, driving increased buying activity in AGEL shares.
Jefferies’ Bullish Outlook
Jefferies has maintained a positive stance on AGEL, reiterating its “Buy” rating with a target price of ₹1,300 per share. The brokerage’s optimistic outlook is underpinned by several factors:
- Capacity Expansion: AGEL plans to scale its renewable energy capacity from 14 GW in FY25 to 50 GW by 2030, representing a 3.5-fold increase.
- Long-Term Power Purchase Agreements (PPAs): The company has secured long-term PPAs, ensuring a stable revenue stream.
- Promoter Infusion: Infusion of funds by promoters is expected to bolster the company’s financial position.
These strategic initiatives are anticipated to drive substantial growth in AGEL’s earnings before interest, taxes, depreciation, and amortization (EBITDA), despite potential challenges such as execution delays.
Factors Driving the Share Price Surge
Several key developments have contributed to the recent surge in AGEL’s stock price:
- Regulatory Clearance: SEBI’s dismissal of the allegations has removed a significant overhang on the stock, leading to improved investor sentiment.
- Strong Financial Performance: AGEL has demonstrated robust financial growth, with a compound annual growth rate (CAGR) of 127% over the past five years.
- Strategic Initiatives: The company’s plans to expand its renewable energy capacity and secure long-term PPAs are expected to enhance its market position.
- Positive Analyst Sentiment: Analysts have expressed confidence in AGEL’s growth prospects, further fueling investor interest.
Company Fundamentals
AGEL’s fundamentals reflect its strong position in the renewable energy sector:
- Revenue Growth: The company has achieved significant revenue growth, driven by the expansion of its renewable energy portfolio.
- Debt Levels: While AGEL has incurred debt to finance its expansion, the company’s strategic initiatives are expected to improve its debt servicing capacity.
- Profitability: AGEL has demonstrated consistent profitability, supported by its long-term PPAs and capacity expansion plans.
These factors position AGEL favorably within the renewable energy sector, aligning with broader global trends towards sustainable energy sources.
Risks and Considerations for Investors
Investors should be aware of the potential risks associated with AGEL:
- Execution Delays: Delays in the implementation of capacity expansion projects could impact revenue growth.
- Regulatory Changes: Changes in government policies or regulations related to renewable energy could affect AGEL’s operations.
- Market Volatility: Fluctuations in the stock market could influence AGEL’s stock price.
Despite these risks, AGEL’s strategic initiatives and strong fundamentals provide a solid foundation for future growth.
Conclusion
AGEL’s recent stock price surge, coupled with Jefferies’ bullish outlook, underscores the company’s potential in the renewable energy sector. The dismissal of regulatory allegations has further strengthened investor confidence, positioning AGEL for continued growth. However, investors should remain cognizant of potential risks and monitor the company’s progress in executing its strategic initiatives. Overall, AGEL presents a compelling opportunity for investors seeking exposure to India’s burgeoning renewable energy market.
FAQS:
Adani Green has strong growth plans and a bullish outlook from analysts. Its renewable energy projects are expanding, but market risks remain. Investors should consider their risk before buying.
Adani Power has potential for growth due to increasing energy demand. However, it faces market and regulatory risks. Short-term rises are possible, but cautious investing is advised.
Adani Green shows positive momentum and analyst support. Buying now could be profitable, but share prices can fluctuate. Assess your risk and investment goals before deciding.
Disclaimer:
This content is for informational purposes only and is not financial advice. Always conduct your research.
