Adani is ‘too big to ignore’ says Cantor Fitzgerald; sees 50% upside for Adani Enterprises
Adani Enterprises with an ‘Overweight’ rating and a target price of ₹4,368 per share, expecting an upside of over 50% on Adani Enterprises shares. Adani Enterprises share price jumped over 5% in early trade on Monday. The stock gained as much as 5.89% to ₹3,065.15 apiece on the BSE.
Cantor Fitzgerald believes Adani Enterprises’ current valuation does not reflect all the parts. It is of the view that risk/ reward is attractive at current levels. Also Read: SBI Card share price plunges over 5% as Q3 result misses estimates; should you buy, sell or hold the stock? Calling Adani Enterprises a publicly-trading incubator, Cantor Fitzgerald suspects many of the current business segments of the company will be demerged.
“We believe AEL’s current valuation is largely driven by three main segments: airports, roads, and its new energy ecosystem, which in our view, means investors are getting a free call option on the rest of AEL’s business, which accounted for 85%+ of revenue in FY23 and includes many businesses that are in incubation phase and will materially contribute to financials over the coming years," Cantor Fitzgerald said in a report. Adani Enterprises currently owns eight airports, seven of which are operational. The one under development is the Navi Mumbai International Airport (NMIA), which is slated to be completed by year-end.
It values the Airports division at ₹1,622 per share. (Exciting news! Mint is now on WhatsApp Channels Subscribe today by clicking the link and stay updated with the latest financial insights! Click here!) The Roads segment is valued at ₹1,525 per share and solar, wind, and electrolyzers at ₹1,511 per share. A total of these comes up to ₹3,419 per share, which is 18% above Thursday’s closing
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