Fri Sep 20 11:18:07 UTC 2024: ## Adani Energy Solutions Poised for Explosive Growth, Says Cantor

**Mumbai, India** – Investment solutions provider Cantor has initiated coverage on Adani Energy Solutions Limited (AESL) with an “Overweight” rating, citing its strong potential for growth in the rapidly expanding Indian energy market.

Cantor’s report highlights AESL’s diverse portfolio, encompassing transmission, distribution, and smart metering assets, valued at $18.5 billion. The firm forecasts a 20% CAGR in revenue and 28.8% CAGR in adjusted EBITDA for AESL from 2023-24 to 2026-27, significantly outpacing projected growth for its peers.

“AESL is more expensive on a multiple basis, but it is also growing meaningfully faster than its peers,” stated the report. “We expect its transmission business to see strong growth as it completes its nine recently awarded projects over the next 18-24 months.” Cantor also expects AESL to secure additional contracts in the future.

The report further emphasizes that India’s developing energy infrastructure presents a favorable environment for AESL’s transmission and distribution businesses to thrive. The company’s distribution business is predicted to achieve double-digit growth through continuous expansion of its regulatory asset base. Meanwhile, its smart metering business is poised for substantial revenue generation from its existing backlog of 22.8 million smart meters.

Cantor emphasizes the importance of AESL’s position in a market that is increasingly reliant on renewable energy sources, necessitating robust transmission and distribution infrastructure. “India needs more electrical infrastructure, and AESL is uniquely positioned to benefit from this trend,” the report notes.

Following a recent capital raise, AESL is well-funded to drive growth across all three segments. At the time of the report, AESL shares were trading at ₹1,013.20, up 3.49%.

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