Motilal Oswal initiates coverage on Adani Enterprises with Buy, sees 25% upside. Here’s why

Motilal Oswal has begun covering Adani Enterprises Limited with a Buy rating and a target price of Rs 3,880, suggesting a 25% increase in value. Following this announcement, the stock price rose over 1% to close at Rs 3,145 on the NSE. The firm sees the Indian infrastructure giant benefiting from upcoming capital expenditures across sectors, including airports, road networks, data centers, renewable energy, mining, and manufacturing.

Adani Enterprises, described as a differentiated infrastructure incubator, combines established operations with emerging businesses poised to drive future growth. The brokerage identifies three key growth drivers behind the Buy rating:

1. EBITDA is expected to double by the end of FY29, reaching Rs 299 billion from around Rs 140 billion in FY26. This growth is projected to come primarily from airports, new energy, and road projects.

2. Consolidated revenue is anticipated to grow at a compound annual rate of 22% between FY26 and FY29, from Rs 1,005 billion to Rs 1,825 billion. Adjusted profit after tax (PAT) is forecast to increase at an 82% CAGR, reaching Rs 106 billion by FY29.

3. The leverage of Adani Enterprises is expected to ease as cash flow improves. Net debt-to-EBITDA is currently at 5.4 times and is projected to decrease to around 4.5 times by FY29. Operating cash flow is expected to grow to approximately Rs 569 billion through FY29.

The firm highlights that Adani Enterprises' market leadership, scale, diversified portfolio, and track record in incubating businesses position it to become a major integrated infrastructure platform. Recent performance shows the stock has gained 42.65% over the past year and 39.23% in 2026, outperforming the benchmark, which has declined 2.12% and 7.49% over the same periods.