Adani Power jumps 4%; Samco names it a Diwali pick, sees near 40% upside
The brokerage said Adani Power trades at a trailing P/E of 22-23 times and EV/EBITDA of 14-15 times, which is a premium to public-sector peers but justified by its superior earnings visibility, balance sheet improvement and growth trajectory.
- Oct 20, 2025,
- Updated Oct 20, 2025 2:33 PM IST
Shares of Adani Power Ltd gained 3.68 per cent in Monday's trade to touch a high of Rs 172. Samco Securities included the stock in its Diwali picks with a 12-month target price of Rs 240, suggesting an upside potential of around 40 per cent.
The brokerage said Adani Power trades at a trailing P/E of 22-23 times and EV/EBITDA of 14-15 times, which is a premium to public-sector peers but justified by its superior earnings visibility, balance sheet improvement and growth trajectory.
"Adani Power remains well-positioned to benefit from rising power demand and capacity expansion in renewable and hybrid projects over the medium term. One can look to add in the range of Rs 145-152 with a target of Rs 230-240 and a stop loss of Rs 120," Samco Securities noted.
Adani Power, one of India's largest private-sector thermal power producers, has an installed capacity of 18,150 MW across strategically located plants.
The company's long-term power purchase agreements (PPAs) provide stable revenues, while participation in merchant power sales offers flexibility and upside during periods of high demand.
For FY25, the company reported consolidated revenue of Rs 56,203 crore, up 11.6 per cent year-on-year, and EBITDA of Rs 21,418 crore, up 17.5 per cent, aided by fuel cost optimisation and higher plant load factors.
Samco highlighted that operational efficiencies and debt reduction helped expand margins and improve the company's leverage profile, reducing interest costs.
It added that Adani Power's strong cash flows, expanding capacity and focus on operational excellence continue to underpin its growth prospects.
Shares of Adani Power Ltd gained 3.68 per cent in Monday's trade to touch a high of Rs 172. Samco Securities included the stock in its Diwali picks with a 12-month target price of Rs 240, suggesting an upside potential of around 40 per cent.
The brokerage said Adani Power trades at a trailing P/E of 22-23 times and EV/EBITDA of 14-15 times, which is a premium to public-sector peers but justified by its superior earnings visibility, balance sheet improvement and growth trajectory.
"Adani Power remains well-positioned to benefit from rising power demand and capacity expansion in renewable and hybrid projects over the medium term. One can look to add in the range of Rs 145-152 with a target of Rs 230-240 and a stop loss of Rs 120," Samco Securities noted.
Adani Power, one of India's largest private-sector thermal power producers, has an installed capacity of 18,150 MW across strategically located plants.
The company's long-term power purchase agreements (PPAs) provide stable revenues, while participation in merchant power sales offers flexibility and upside during periods of high demand.
For FY25, the company reported consolidated revenue of Rs 56,203 crore, up 11.6 per cent year-on-year, and EBITDA of Rs 21,418 crore, up 17.5 per cent, aided by fuel cost optimisation and higher plant load factors.
Samco highlighted that operational efficiencies and debt reduction helped expand margins and improve the company's leverage profile, reducing interest costs.
It added that Adani Power's strong cash flows, expanding capacity and focus on operational excellence continue to underpin its growth prospects.