In this we will analyze the company with its strengths and weaknesses. Along with this, we will also talk about Adani Transmission Share Price Target 2023, 2024, 2025, 2026, 2027, 2030. So stay tuned with this interesting article.
Adani Transmission Share Price Target 2023, 2024, 2025, 2026, 2027, 2030
This company was established on 9 December 2013 by Mr. Gautam Adani. This company is currently one of the largest power transmission companies in India. Presently the company employs about 11,980 employees.
Company Information: |
|
|---|---|
| Chairman | Mr. Gautam Adani |
| Headquarter | Ahmedabad, Gujarat |
| Market Capitalization | Approx. ₹ 2,86,000 Cr. |
| Sector / Industry | Power Generation / Distribution |
| Official Website | adanitransmission.com |
Adani Transmission Share Price Target 2023
The company is a large cap company in terms of market cap. The stock of Adani Transmission has generated impressive CAGR returns of 135% in the last three years. According to the valuation, the company seems to be overvalued right now.
Adani Transmission has consistently increased its sales but has seen a decline in sales in the last couple of quarters. This company is continuously increasing its business. The management of the company is also looking very strong.
The first target for Adani Transmission Share Price Target 2023 will be ₹3100 while the second target can be achieved as ₹3220.
Adani Transmission Share Price Target 2024
The upcoming projects of the company look very strong. Adani Transmission is targeting a capital expenditure of ₹10,000 crore during FY2012-25 in the distribution business. This capital expenditure
To develop the infrastructure of Adani Electricity Mumbai Limited and Mundra Utility Limited.
Government of India is planning to privatize the inefficient existing discoms. In such a situation, good opportunities for inorganic growth can arise to strengthen the distribution of Adani Transmission. However, there is no guarantee of its success.
The first target for Adani Transmission Share Price Target 2024 will be ₹3400 while the second target can be achieved as ₹3540.
Adani Transmission Share Price Target 2025
The financials of the company are looking fine and the company is also earning profits. But the debt burden on the company is very high. Being a capital intensive business, the company constantly needs to take loans. Debt problems are with almost all Adani Group companies.
The company has restructured its debt at various stages of asset acquisition.
Adani Transmission is constantly on the lookout for opportunities from which the company can benefit through acquisitions. But there is always a risk involved. This can cause advantages as well as disadvantages for the company.
Adani Transmission Share Price Target 2025 The first target for the stock is ₹3700 while the target of ₹3950 can be achieved soon.
Adani Transmission Share Price Target 2026
The main business of the company is electricity transmission which has huge scope right now. The company is continuously increasing its operating margins. In the last two years, Adani Transmission has grown rapidly from operating cash flow.
The management of the company is working very aggressively in terms of long term. It will be interesting to see how the stock performs in the times to come.
The first target for Adani Transmission Share Price Target 2026 is ₹4200 while the second target can be achieved as ₹4450.
Adani Transmission Share Price Target 2027
The company is continuously making inroads in electricity transmission and distribution. There is not much competition in this sector either.
The first target for Adani Transmission Share Price Target 2027 will be ₹4630 while the second target will be ₹4710.
Adani Transmission Share Price Target 2030
Looking at the long term, the demand for power in the country is going to be seen increasing very fast. Compared to developed countries in India, per capita consumption of power is very low. As people increase the use of electric appliances, the demand for power will also increase.
For Adani Transmission Share Price Target 2030, the company can cross the target of ₹7000. If the company does very well then this target can be of ₹7500 also.
Adani Transmission Business Model
Adani Transmission's business is focused on the central electricity transmission business in India and execution of new transmission systems under license from state electricity bodies and operation and maintenance (O&M) of existing assets through outsourced partners.
The transmission business of the company is focused on two fronts.
Firstly, to expand its customer base through highly reliable and affordable power supply and exceptional customer service provided through continuous investment and technological upgradation.
Second, to modernize the operating model through advanced metering infrastructure for operational efficiency, flexibility and to be at par with global utilities.
In addition to all this, the company has also forayed into the retail electricity distribution space with the acquisition of a power generation, transmission and distribution (GTD) business license from Mumbai. As of July 2020, Adani Transmission operates a cumulative network of 12,200 circuit kms. Also, the company has over 3,200 circuit kilometers under various stages of construction.
Company's Strengths
Financials Strengths:
- The company has an excellent cash conversion cycle of -2.97 days.
- Strong sales growth of 31.4% in the last five years.
- Last 3 years ROE of the company is maintained at 18.4%.
Company's Weaknesses
Financial Weaknesses:
- Adani Transmission has shown poor profit growth of -215.07% in last 3 years.
- The company has a lot of debt. The debt-equity ratio is 10.11.
- The law interest coverage ratio of the company is 0.92.
- The EBITDA margin of the company is -1.25% in the last 5 years.
- The company is trading at high EV/EBITDA of 504.11.
- Quick ratio and current ratio both below standard.
| Shareholding Pattern: | |
|---|---|
| Promoters | 73.87% |
| Public | 2.7% |
| FII | 20.01% |
| DII | 3.43% |
| Others | 0% |
Competitors of Adani Transmission Ltd
- NTPC
- Power Grid Corp
- Adani Power
- JSW Energy
- PTC India
| Adani Transmission Share Target Price For Long Term | |
|---|---|
| First Target(2023) | ₹3100 |
| Second Target | ₹3220 |
| First Target(2024) | ₹3400 |
| Second Target | ₹3540 |
| First Target(2025) | ₹3700 |
| Second Target | ₹3950 |
| First Target(2026) | ₹4200 |
| Second Target | ₹4450 |
| First Target(2027) | ₹4630 |
| Second Target | ₹4710 |
| First Target(2030) | ₹7000 |
| Second Target | ₹7500 |
Conclusion:
Keeping in mind the growth opportunities in the power sector in the coming times, Adani Transmission is continuously investing in new project development to increase its capacity. It can be expected that the company can definitely get its benefit in the long run.
In addition to all this, Adani Transmission is also seen working under partnership with new companies and government in transmission sector to increase its business growth in future. Due to all this, it can be expected that the company can emerge as a leader in the coming times. Despite all this, it is necessary to keep an eye on the weaknesses of the company.
Today we have discussed Adani Transmission Share Price Target 2023, 2024, 2025, 2026, 2027 and 2030. Friends, if you liked this information, please share it with your companions on social media networks. Your valuable suggestions are invited in the below comment box.
Disclaimer: No investment advice has been given in this post, these posts have been written for educational purpose. We are not SEBI Registered Advisor. Please do your own research or seek the advice of your financial advisor before making any investment.