Adani Energy Solutions Eyes Smart Metering As New High-Growth Area

Adani Energy Solutions Ltd. is gearing up to capitalise on the booming smart metering market in India, with the government targeting the installation of 25 crore smart meters by 2026. 

AESL is poised to seize a significant share of this opportunity, as the bidding process for 12 crore meters is yet to commence, according to Jefferies Institutional Equities.

The brokerage has a 'buy' rating on the stock, with a target price of Rs 1,365 per share, implying an upside of 38%. 

Smart meters, which enable real-time tracking of electricity consumption and cost, will be a "game changer", according to Jefferies. AESL called it a "new high-growth area" as smart meters help households effectively manage electricity costs.

AESL is currently executing projects worth Rs 27,000 crore in this segment, covering major states like Maharashtra, Andhra Pradesh, and Uttarakhand. In Maharashtra alone, the company is working on installing 14.4 million meters across three circles, while projects in Andhra Pradesh and Uttarakhand will see the installation of 4.1 million and 0.7 million meters, respectively.

The Adani company also maintains a robust presence in the transmission sector, with a 17% market share in competitive bids. It also aggressively participated in bidding processes and has transmission projects worth Rs 90,000 crore in the pipeline, which is expected to play out over the next 12-18 months.

According to management, AESL's focus remains on minimising volatility in its asset base across parameters. 

With a strategic presence in 14 states and a network spanning over 20,500 circuit kilometres, the company is India's only pure-play private-sector listed entity on the transmission and distribution sector, according to the brokerage. 

Shares of the company were trading 0.14% higher at Rs 981.25 per share, compared to a 0.89% advance in the benchmark Nifty 50 as of 9:45 a.m.

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