Adani Power share price at Rs 240! Samco sees 53% upside in 12 months 

Samco Securities has picked Adani Power Ltd among its Diwali stock picks, with a 12-month target price of Rs 240, hinting at 53 per cent potential upside. The domestic brokerage said Adani Power trades at a trailing PE of 22–23 times and EV/Ebitda of 14–15 times, a premium to public-sector peers. This is justified, it said, thanks to Adani Power's 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 must look to add in a range of Rs 145-152 with a target of Rs 230-240 and a stop loss of Rs 120," Samco Securities said.

Adani Power Ltd stands as one of India’s largest private-sector thermal power producers, with an installed capacity of 18,150 MW spread across strategically located plants. The company operates primarily through long-term power purchase agreements (PPAs) ensuring steady base-load revenues, while its participation in merchant power sales adds an element of flexibility and upside during periods of strong demand.

Samco said Adani Power's FY25 consolidated revenue of Rs 56,203 crore (up 11.6 per cent YoY) and Ebitda of Rs 21,418 crore (up 17.5 per cent YoY) were supported by improved fuel cost optimisation and higher plant load factors. Margins saw modest expansion as operational efficiencies improved, and the company’s leverage profile strengthened through cash flow monetization and disciplined debt reduction, easing interest cost pressures. It sees 53 per cent potential upside on the counter.

On Friday, shares of Adani Power were trading 4.5 per cent higher at Rs 164.40 amid reports the Centre has granted approval to the Adani group company to lay an overhead transmission line to connect its Godda Ultra Super Critical Thermal Power Plant with the Indian grid through a Line-In Line-Out (LILO) arrangement of the Kahalgaon A–Maithon B 400 KV line. As of now, the Godda plant supplies electricity exclusively to Bangladesh, Indian Express reported.