Global brokerage Cantor Fitzgerald says that Adani Group company Adani Energy Solutions Limited can see a rally of up to 130 percent from the current level due to strong growth and diversified business. The research firm has initiated coverage on the power transmission arm of Adani Group with an 'overweight' rating. The company's stock has seen a rise of more than 3 percent on Friday.

The research firm has a target price of Rs 2,251 per share on the stock. The brokerage believes that this stock is a very attractive way to invest in the fast-growing energy market in India. Cantor said in the report that a diversified portfolio, which includes transmission assets, distribution assets and smart metering businesses, can be a way to gain attractive exposure in the fast-growing energy market.

Revenue will grow at a CAGR of 20% The note said that Adani Energy Solutions offers growth unlike any other publicly traded utility and energy company in the US, Europe or Asia. The research firm expects the company's revenue to grow at a CAGR of 20 per cent from FY 2024 to 2027. The research firm's note said that the transmission business will see strong growth as the company completes the 9 projects recently assigned to it. The distribution business should be able to grow at a rate of almost double digits. It said, "The smart metering business is set to start generating good revenue/profit while working on its 22.8 million smart meter backlog and can win another 40 million smart meters." The note said that Adani Energy shares are currently trading at a 60 percent discount to others, and should trade at in-line multiples. Jefferies' 'buy' rating Meanwhile, Jefferies said that the power distribution company is gearing up to take advantage of the fast-growing smart metering market in India. The government has set a target of installing 25 crore smart meters by 2026. Jefferies has given a 'buy' rating to this stock, with a target price of Rs 1,365 per share, indicating an increase of 38 percent.