Ahmedabad, August 18: Global brokerage firm Bernstein has reaffirmed its positive stance on the Adani Group, naming Adani Ports and Adani Power as its top investment picks. The firm believes that despite facing regulatory and market challenges in recent years, the Adani Group has emerged stronger than before.
In its latest report, Bernstein noted that it has closely monitored two significant events related to the Adani Group: the short-seller controversy and issues involving the U.S. Securities and Exchange Commission (SEC) and the Department of Justice (DOJ). Despite these challenges, the group’s ability to implement its projects remains robust, and its business expansion has not been hampered.
The report indicates an improvement in the Adani Group’s financial condition. The trend of pledging shares has nearly ceased, and the level of debt has decreased compared to previous years. This has strengthened the group’s balance sheet and financial stability.
Bernstein has maintained its ‘Outperform’ rating on Adani Ports and Special Economic Zone, raising the target price from ₹1,880 to ₹1,973 per share. The brokerage has increased its cargo volume growth forecast for the fiscal year 2026-27, citing strong growth in international port operations. July figures showed a 12% increase in the company’s business, up from an earlier estimate of 10%. Additionally, the firm has raised its targeted EV/EBITDA multiple from 16 times to 16.5 times.
The report highlights several positive attributes of Adani Ports, including strong pricing power, expansion in logistics, and better valuation compared to competitors. The company’s ability to acquire assets and successfully develop them is also seen as a significant strength.
Bernstein has also kept its ‘Outperform’ rating for Adani Power, setting a target price of ₹220 per share, up from ₹203.56. According to the brokerage’s estimates, Adani Power’s operational profit is expected to remain strong in the coming years. The report predicts EBITDA of ₹241,272 million in 2027 and ₹302,594 million in 2028.
However, Bernstein has adopted a cautious approach regarding Adani Green Energy. The brokerage has maintained an ‘Underperform’ rating, reducing the target price from ₹1,000 to ₹980 per share. The report states that current valuations for Adani Green are quite high, limiting the potential for short-term growth. Bernstein has incorporated the latest contractual tariffs with Adani Energy Solutions and revised capacity growth estimates up to 2030.
The brokerage anticipates a 10% decline in Adani Green’s EBITDA estimates for fiscal year 2027 following adjustments in assumptions. Additionally, citing changes in the debt-equity mix, it has lowered its weighted average cost of capital estimate from 8.8% to 8.6%.
Bernstein believes that despite the challenges faced in recent years, the Adani Group has maintained its operational capacity and financial discipline. Strong cash flow, decreasing debt, and a broad presence in infrastructure sectors contribute to the group’s strong long-term growth prospects.
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