In a notable recognition of the Adani Group’s strategic importance, US brokerage firm Cantor Fitzgerald has given an ‘Overweight’ rating to Adani Enterprises, the flagship company of the Adani Group. The firm has set a target price of ₹4,368 per share, projecting a potential upside of over 50% on Adani Enterprises shares.
Cantor Fitzgerald emphasized that Adani Enterprises holds a central position in India’s pursuit of various economic objectives. The report underscores the diversified nature of Adani Enterprises, describing it as a “publicly-trading incubator” with numerous business segments set for demerger.
According to Cantor Fitzgerald, the current valuation of Adani Enterprises is largely influenced by three primary segments: airports, roads, and the new energy ecosystem. However, the report suggests that investors are receiving a valuable “free call option” on the remaining 85%+ of Adani Enterprises’ business, which includes several businesses in their incubation phase.
The firm points out that Adani Enterprises owns eight airports, with seven already operational and the Navi Mumbai International Airport (NMIA) under development. Cantor Fitzgerald views the additional six businesses as essentially being obtained for free at current share levels.
Cantor Fitzgerald’s Sum-of-the-Parts (SOTP) derived price target implies a target EV/EBITDA multiple of 23.5x for FY26E, compared to the current trading multiple of 13.9x for the same period. The report anticipates potential catalysts for share appreciation, particularly as Adani’s green hydrogen facility becomes operational in FY27E.
Addressing concerns raised by the Hindenburg report, Cantor Fitzgerald acknowledges that Adani Enterprises has taken measures to reduce liquidity risk, enhance governance, and increase transparency. The brokerage firm concludes that Adani is “too big to ignore,” and for India, Adani’s role is deemed essential, asserting that the country needs Adani as much as Adani needs the country.
