Adani Enterprises Set for 20% Surge: 5 Reasons Jefferies Backs Rs 14,500 Crore Resolution Plan
The Adani Group stocks are in focus, and the Adani Enterprises share price is up nearly 1% after the company received approval from the Committee of Creditors for its Rs 14,500 crore resolution plan for Jaypee Associates. International brokerage house Jefferies has a Buy on the stock, with a price target of Rs 2,940, indicating about a 20% upside from current levels. The brokerage believes this could strengthen Adani’s presence across cement, power, real estate, and roads.
Jefferies kept its Buy rating on Adani Enterprises, highlighting that the acquisition offers a rare mix of assets that fit naturally across the Adani Group’s verticals and improves long-term earnings visibility. The offer beat competing bids from Vedanta, Dalmia Bharat, Jindal Power, and PNC Infratech due to stronger upfront payment terms and the strategic overlap that Adani brings to Jaypee’s portfolio. The exchange filing by Adani Enterprises notes that the implementation of the resolution plan is subject to the terms of the LOI and requisite approvals from the National Company Law Tribunal, Allahabad Bench, Prayagraj, and/or any other regulatory authority/courts/tribunal under applicable laws.
Jefferies stated that the assets could be carved out in a structured manner. Cement assets would likely move to Ambuja; power assets to Adani Power or Adani Green; real estate and land parcels to Adani Realty; and road projects would remain under Adani Roads. This internal allocation approach allows each business to absorb Jaypee’s assets in line with existing capacity and expansion plans. JAL’s businesses span engineering, construction, cement, power, real estate, fertilizers, hospitality, and multiple subsidiaries, making it one of the more diversified stressed groups available through insolvency.
Jaypee’s cement portfolio includes 9.4 MTPA of installed capacity and 6.7 MTPA of clinker capacity across Uttar Pradesh, Madhya Pradesh, and Chhattisgarh, although most units are currently non-operational. Jefferies said these capacities would help Ambuja strengthen its presence in Central India, a region where Ambuja currently has only about 8% of its footprint. The Dalla Super Plant with 2.2 MTPA of clinker capacity remains under arbitration with UltraTech. A previous deal with Dalmia Bharat for these cement assets, valued at Rs 5,800 crore, had stalled after the creditor committee pushed Jaypee into insolvency.
On the power side, Jefferies noted that Jaypee has a hydro power project of 400 MW at Vishnuprayag, alongside thermal capacity of 1,320 MW at Bina and 500 MW at Nigrie. These assets fit naturally with both Adani Power and Adani Green in terms of scale and geography. The brokerage highlighted the scale of Jaypee’s real estate projects, including Jaypee Greens in Greater Noida, Jaypee Greens Wishtown in Noida, and the Jaypee International Sports City near Jewar Airport. Jaypee also has commercial spaces across Delhi NCR. These assets could be absorbed into Adani Realty’s pipeline and provide an immediate land bank in one of the fastest-growing real estate corridors.
Jaypee’s hospitality portfolio includes five hotels with more than 860 rooms across Delhi, Noida, Agra, and Mussoorie. Jefferies said these properties offer potential for long-term redevelopment or integration into any hospitality plans that the Adani group may advance in the future. The brokerage explained that Adani Enterprises, as the resolution applicant, will first secure control but will then pass individual businesses to the relevant Adani group companies. This allows each business to handle capex, operations, and turnaround independently, reducing strain on Adani Enterprises’ standalone balance sheet and improving clarity on long-term cash flows.
Jefferies maintained its Rs 2,940 price target on Adani Enterprises, valuing the company using a sum-of-the-parts model based on segment-level EV/EBITDA. Adani’s diversification across integrated resources management, mining, solar manufacturing, airports, green hydrogen, and data centres supports long-term growth. However, Jefferies also flagged risks. Delays in integrating Jaypee’s assets, execution challenges in green hydrogen or airports, slower progress in road projects, or a re-emergence of leverage concerns could impact the investment case.
Jefferies said the Jaypee acquisition is the most comprehensive insolvency asset available to any bidder in recent years, largely because it offers cement, power, real estate, engineering, and hotels in one package. Adani’s ability to distribute these businesses across its subsidiaries creates a natural fit, which the brokerage said is a key reason why its resolution plan was preferred. For investors, Jefferies said the real driver is strategic alignment. Each major Jaypee asset finds a logical endpoint within the Adani ecosystem, making the acquisition value-accretive over time.
