Adani Enterprises share price gained over 2% on Wednesday after Morgan Stanley initiated coverage on the stock with a bullish view, as it believes the company is well positioned to benefit from India’s infrastructure and capex cycle. Adani Enterprises shares rallied as much as 2.38% to ₹3,034.35 apiece on the BSE.
Morgan Stanley assigned an ‘Overweight’ rating on Adani Enterprises shares, with a target price of ₹3,638 apiece, implying an upside potential of nearly 23% from Tuesday’s closing price.
The brokerage firm described Adani Enterprises as ‘India’s premier incubator’, with a market cap CAGR of 30% since its IPO in September 1994, outperforming the Nifty by 21 ppt.
“Adani Enterprises’ model is self-reinforcing: incubation → scale → monetisation → capital recycling,” Morgan Stanley noted, adding that the company is now entering a large earnings monetisation phase, with multiple businesses reaching scale simultaneously. Although the net debt is expected to rise in absolute terms as capex momentum remains strong, net/EBITDA may improve as EBITDA ramps up across its key businesses.
In FY26, 80% of Adani Enterprises’ EBITDA already comes from its core incubating portfolio (infrastructure and utilities), compared with the trading business accounting for 36% four years ago.
Morgan Stanley believes FY27 marks an earnings inflection for Adani Enterprises, driven by the Navi Mumbai airport commissioning, capacity expansion and backward integration in the new energy business, tolling commencement at Ganga Expressway (road project), and increased copper smelting utilization. The brokerage firm sees stronger earnings contributions from four businesses.
Adani Enterprises’ airport platform, which handled 95.5 million pax and had 23% market share in F26, is expected to benefit from the recently commissioned Navi Mumbai International Airport.
The Adani Group’s new energy business is expected to see strong earnings growth over F27-28, driven by solar cell and module capacity additions. Moreover, tolling commencement at Ganga Expressway is seen driving an EBITDA of ₹850 crore in FY27 and higher copper smelting utilization is likely to drive an EBITDA of ₹2,200 crore in FY27.
Adani Enterprises has a multi-vertical compounding platform, and Morgan Stanley forecasts revenue and EBITDA CAGRs of 19% and 32%, respectively, over FY26-FY30. It expects EBITDA to scale ~3x from ₹140 billion in FY26 to ~ ₹423 billion by FY30, driven by airports with 29% EBITDA CAGR from traffic growth, non-aero revenue, and city-side development (CSD) monetization; new energy with 18% CAGR and primary industries with 45% CAGR.
Adani Enterprises Share Price Performance
Adani Enterprises share price has risen 10% in one month and has gained over 65% in three months. The Adani Group stock has surged 35% in six months and has rallied 24% in one year. Adani Enterprises shares have delivered multibagger returns of 105% in five years.
At 11:30 AM, Adani Enterprises share price was trading 1.70% higher at ₹3,014.05 apiece on the BSE.
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