Synopsis:
Adani Power is set for strong growth as Jefferies projects a 15% upside with a target price of Rs. 690. The company is backed by robust capacity expansion, improved cash flow from Bangladesh, and profitable long-term PPAs. With multi-bagger returns and solid technicals, investor confidence remains high.
This Adani group is back in focus as Jefferies maintains a ‘Buy’ rating with a target price of ₹690, indicating a 15% upside. The bullish view is driven by plans to double EBITDA by FY30, capacity expansion, lower financial risk, and strong returns from overseas power sales.
With a market capitalization of Rs. 2,29,064 crore, shares of Adani Power Ltd. were trading at Rs. 602, up 0.33%, after touching a high of Rs. 610 per share. The stock had previously closed at Rs. 600 per share.
Capacity Expansion, Profitable PPAs, and Bangladesh Payments Drive Optimism
Jefferies remains bullish on the Adani Group firm, citing strong capacity addition plans backed by a stable balance sheet. Investor sentiment has improved following recent payments from Bangladesh for electricity exports, which helped ease cash flow concerns.
The brokerage also noted that Adani Power’s risk profile is improving, as much of the new capacity is tied to profitable Power Purchase Agreements (PPAs). The company’s market cap recently touched Rs. 2.30 lakh crore, with healthy trading activity on the BSE.
Adani Power Trading Above Key Averages, RSI Indicates Bullish Momentum
Over the past five years, Adani Power has surged by 1,629%, while also delivering over 110% returns in both two- and three-year periods. Despite some volatility 200, technical indicators remain strong. The stock is currently trading above all key moving averages from 10-day to 200-day and maintains a bullish RSI of 65.84 in one day chart.
Jefferies highlighted Adani Power’s goal to double EBITDA by FY30, supported by its plan to increase generation capacity from 23 GW to 30 GW. Notably, 11.2 GW of new capacity has already been ordered at competitive pricing.
About the company
Adani Power Limited (APL), part of the Adani Group, is India’s largest private thermal power producer with an operating capacity exceeding 18,000 MW. It operates coal-based power plants across Gujarat, Maharashtra, Rajasthan, Karnataka, and Chhattisgarh. The company sells power through a mix of long-term PPAs, short-term contracts, and on the merchant market, ensuring diversified revenue streams.
APL also engages in electricity transmission and distribution and leverages the Adani Group’s logistics network for coal imports. It plays a strategic role in regional energy exports, notably to Bangladesh. While currently focused on thermal power, Adani Power is expected to gradually adopt renewable energy as part of the group’s sustainability goals.
The company has shown impressive profit growth, registering a 26% CAGR over the past three years. It also maintains a strong return on equity, averaging 40.3% over the last three years. In FY25, revenue increased by 11.62%, rising from Rs. 50,351 crore to Rs. 56,203 crore. Operating profit also improved, climbing from Rs. 18,228 crore to Rs. 21,418 crore. However, net profit declined to Rs. 12,750 crore from Rs. 20,829 crore in FY24.
Written by Manideep Appana
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