Cantor gives 'Overweight” rating to AESL in growing energy markets

Adani Energy SoluAtions Limited (AESL) is an attractive player in the rapidly expanding energy markets in India, and it offers growth unlike any other publicly traded utility or energy company across US, Europe, or Asia, asserted investment solutions provider Cantor.

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AESL has a diversified portfolio that includes transmission assets, distribution assets, and a smart metering business, with an enterprise value of USD 18.5 billion.

Cantor in a report forecast that the Adani Group company's total revenue will grow at a CAGR of 20 per cent from 2023-24 to 202627 and adjusted EBITDA to grow at a CAGR of 28.8 per cent. In comparison, the revenue of peers growing at low single digits and EBITDA at mid-single digits.

"Yes, AESL is more expensive on a multiple basis, but is also growing meaningfully faster than its peers. Secondly, we believe AESL is a more diversified business.