Adani Power shares: Flat return in 3 months; what should investors do?

Adani Power has 23GW of under-construction capacity, of which 10GW is yet to be tied up with PPAs. ICICI Securities said 13GW of capacity across four states is in the pipeline and the management expects a few more states to come up with PPAs. The brokerage suggested 'ADD' with an unchanged target of Rs 233 on the stock. 

"The company has advanced its vision from 42GW to 45GW capacity by FY32E. The 23.7GW of under-construction projects are on track. Hydropower in Bhutan (5GW) and nuclear power (10GW) are new ventures. We maintain BUY with a SotP-based TP of Rs 257 (Rs 253 earlier) based on 18x Sep’28E EV/Ebitda," Adani Power said.

IIFL has a 'Buy' rating on the stock with a target of Rs 240. Jefferies finds the stock wirth Rs 270. Bernstein sees the stock at Rs 220, Macquarie at Rs 230 and Morgan Stanley at Rs 275. Cantor Fitzgerald gave an 'Overweight' rating on the stock with target of Rs 266, Bloomberg data compiled by Business Today suggested.  

Antique Stock Broking said 95 per cent of operating-fleet PPA tie-up has structurally de-risked earnings. A 2.3 times capacity buildout to 42 GW by FY32 at industry low capex/MW and short gestation, a visible demand upcycle that lifts both PLF and pricing and a broadening growth levers across tha JAL assets and a path to near-debt-free status by PY33 are all positive it said. This brokerage has suggested 'Buy' and revised its target on the stock to Rs 282.

360 ONE Capital said Adani Power delivered a strong quarterly performance, with higher generation and better realisation in both PPA and merchant power segments. Its robust revenue visibility, supported by high PPA tie-ups, stable operations and a healthy balance sheet, continues to position it as a leading domestic power utility
player with the largest thermal power portfolio, the brokerage said.

"Over the past three months, the stock has remained largely flat and may be entering a consolidation phase after a 58 per cent rally over the last six months. Although the capex plan remains unchanged, execution could be slightly slower. The key positive takeaway is the company's continued focus on increasing tied-up capacity, improving cash flow stability and reducing exposure to merchant power tariff volatility," the brokerage said.

360 ONE Capital, however, believes the Adani Power valuation appears elevated at 6.4 times FY26 book value.

"Adani Power has advanced its vision from 42GW to 45GW capacity by FY32E. The 23.7GW of under-construction projects are on track.
Hydropower in Bhutan (5GW) and nuclear power (10GW) are new ventures. We maintain Buy with a SotP-based target of Rs 257 (Rs 253 earlier) based on 18x Sep’28E EV/Ebitda," JM Financial said.