ADRO shares rise 36%, management prepares Rp4 trillion buyback—still worth buying?

PT Alamtri Resources Indonesia Tbk (ADRO) is once again preparing a share buyback programme amid rising share prices throughout 2026. The question remains whether ADRO share prices still have potential for further gains.

In trading on Friday 13 March 2026, ADRO shares closed at Rp2,480 per share, down 20 points or 0.80% from the previous day. However, since the beginning of 2026, ADRO share prices have risen 660 points, or approximately 36.26%.

ADRO management plans to conduct a share buyback with a maximum value of Rp4 trillion, or not exceeding 10% of total paid-up capital.

To realise this plan, ADRO will hold an Extraordinary General Meeting of Shareholders (RUPSLB) on 17 April 2026. If approved, buyback implementation will commence on 20 April 2026 and be conducted in stages through the Indonesia Stock Exchange over a maximum period of 12 months.

Management believes that share buyback can improve trading liquidity and make share prices better reflect the company’s fundamental value. Additionally, this measure is expected to boost investor confidence.

ADRO has assured that buyback implementation will not disrupt financial performance, as the company has sufficient retained earnings and cash flow.

ADRO is among issuers that are quite active in conducting buybacks. During the period 16 May–2 June 2025, ADRO repurchased approximately 33 million shares, or 0.11% of total outstanding shares.

Subsequently, during the period 3 June 2025 to 28 February 2026, ADRO again conducted a buyback of 556.19 million shares, or approximately 1.89% of paid-up capital.

Muhammad Wafi, Head of Research at Korea Investment & Sekuritas Indonesia, believes that the frequency of buybacks indicates management views ADRO shares as still undervalued.

“Buyback also provides positive sentiment and helps mitigate the risk of share price decline,” he stated.

However, the use of internal cash for buyback still carries risk, as it may reduce the company’s financial flexibility for expansion and diversification into renewable energy.

ADRO Share Recommendations

Muhammad Wafi recommends ADRO shares with a price target of Rp2,800 per share.

Meanwhile, Senior Market Analyst Nafan Aji Gusta at Mirae Asset Sekuritas gives a hold recommendation with a price target of Rp2,550 per share. According to him, cash usage for buyback must be carefully managed to avoid disrupting the company’s operational requirements and investment needs.