Adani Power shares: 50% upside! What stock analysts say post Q4 results

Adani Power's Q4 performance was on expected lines, following which a couple of brokerages have retained their 'Buy' ratings on the Adani group stock, noting that the company has resolved its disputes, reduced the leverage and improved the profits of its operating assets. Adani Power, they said, is using its balance sheet to acquire assets at attractive prices. It is also setting up new assets to meet renewed demand for coal. 

For ICICI Securities, Adani Power is a 'Buy' with a 12-month target price of Rs 610. Ventura Securities sees a massive 51 per cent upside on Adani Power, but over the next 24-month period. 

Adani Power is ahead of competition in new build, said ICICI Securities adding that the company is able to tie up its existing assets under new long-term arrangements at attractive tariffs.  

"We maintain BUY; valuing the stock as per the DCF methodology, we arrive at a target of Rs 610 per share (earlier Rs 600). We revise our target on the back of: strong pipeline of new PPAs by state discoms; and merchant/short-term markets offering upside," ICICI Securities said.

Ventura Securities has a 24-month target of Rs 806 on Adani Power. It noted that power demand in India is surging, driven by rising manufacturing activities and growing adoption of white goods & gadgets in households. 

"With RE unable to fully meet the rising energy needs, the widening peak demand-supply gap underscores the necessity of augmenting base load thermal power capacity. APL, India's largest private pure-play thermal power producer, is strategically positioned with robust capacity expansion plans to address this critical demand," it said.

This brokerage has recommended 'Buy' and maintained its price target of Rs 806, representing an upside of 51.5 per cent. 

Adani Power's Q4 revenue was up 6.5 per cent YoY at Rs 14,237 crore, driven by an 18.9 per cent YoY increase in power sales to 26.4 billion units. Volume growth was partially offset by lower merchant tariff realization during the quarter. 

Average tariff during Q4FY25 stood at Rs 5.4 per unit, compared to Rs 6 per unit. Generation capacity stood at 17,550 MW, up from 15,250 MW last year.