Brokerage firm IIFL Capital has initiated coverage on Adani Power share price, giving ‘buy’ rating to the Adani Group stock, with a target price of ₹240 apiece, seeing an upside potential up to 9%.
In a recent note, the brokerage firm said that it likes Adani Power’s strategy of capturing countercyclical arbitrage in asset creation, which earns outsized returns in a structurally ‘utility’ sector.
“With a large growth pipeline, industry leading execution, and complementary group renewables and energy-management businesses, we estimate Adani can quadruple Ebitda by FY33-35E. While 60%+ of our fair value rests on unexecuted projects and the stock trades at a rich 4.6x FY28E P/BV, we think its industry-leading asset base and cash-flow profile justify the growth optionality. BUY,” it said.
The brokerage firm further said that expect Adani’s free cash flow from operations to rise from ₹170 billion in FY26 to ₹570 billion on full portfolio buildout, with optionality from planned moves into nuclear (10GW capacity target by 2035) and hydro (5GW JV with Druk Green Power, Bhutan) as well.
“Additionally, we expect Adani to expand its customer base beyond DISCOMs, foraying into firm power supply to C&I customers,” it added.
The company further forecasts a 20% Ebitda Cagr over FY26–29E as some under-construction projects commission, making it among the fastest-growing non-renewable power gencos in India.
“Our so TP-based 12-month TP of ₹240 per share values Adani at an implied FY28E EV/Ebitda of 20x, above the coverage median of 11.1x, reflecting its faster growth and superior profitability. Downside risks: Execution delays, failure to sign PPAs, weak spot tariffs, competition from battery storage,” it added.
Adani Power is India’s largest private sector thermal power generation developer & operator, with an installed capacity of 18.2GW across a portfolio of pit‑head and coastal power plants. Its geographic mix and locational diversity provide it fuel flexibility, allowing it to source through a combination of domestic coal linkages, e-auctions, and imported coal.
Adani Power share price trend
Adani Power share price trend has remained volatile amid weak market sentiments. The Adani Group stock has slipped over 3% in a week and 6.71% in a month.
On Tuesday, Adani Power share price fell over 1.30% to ₹217 apiece on NSE.
Furthermore, the stock has delivered 46% returns on year-to-date (YTD) basis and 82% in a year.
Looking at the broader level, the Adani Group stock has given multibagger returns of 345% returns in three years and 888% in five years.
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.
