NEW DELHI: Shares of Adani Transmission climbed as much as 6.12 per cent in Tuesday’s trade after brokerage firm Edelweiss initiated coverage of the stock with ‘Buy’ rating and set a target price of Rs 154.

The scrip settled at Rs 133.60, up 4.91 per cent, on Tuesday on BSE. Benchmark Sensex closed Tuesday's session at 31,599.76, down 0.08 per cent.

Edelweiss in a research report said, “Our conviction is underpinned by whopping Rs 3 lakh crore domestic transmission opportunity over FY18-22, aggressively growing ATL capturing 20% of TBCB projects, debt restructuring & additional leveraging boosting IRR of existing/M&A projects by 300-400bps and scale & synergy benefits as O&M costs are spread across projects.”

Edelweiss believes the company to clock 19 per cent and 36 per cent EBITDA and PAT CAGR, respectively, over FY17-19.

Cost overruns in new projects, aggressive bidding in TBCB projects, unfavourable regulatory changes and delay in true-up orders are risks.

The stock had hit a 52-week high of Rs 156 on September 13, 2017 and 52-week low of Rs 34 on September 30, 2016.