Multibagger Adani group stock: India's 12th most valued firm - Should you buy or sell?

Adani Power share price: Two of Gautam Adani-led companies- Adani Enterprises Ltd and Adani Ports & Special Economic Zone Ltd (Adani Ports) are constituents of the NIfty50 index, but both of them are not the most valued company from the Adani Group. Interestingly, a multibagger stock from Gautam Adani's conglomerate has dwarfed both of them in terms of market capitalization.

The company is Adani Power, the power and utilities arm of the Adani Group, which has been rolling lately. Shares of Adani Power Ltd gained 5.45 per cent on Monday to hit its 52-week high at Rs 234, with its total market capitalization hitting Rs 4.5 lakh crore mark. Adani Power piped Sun Pharmaceuticals Industries Ltd to become India's 12th most valued company on Monday.

Shares of Adani Power Ltd have surged nearly 45 per cent in the last one month, while the stock has soared over 57 per cent in 2026 so far. The stock has zoomed more than 130 per cent in the last one year, from its 52-week low at Rs 101. The stock has delivered jaw dropping 1,100 per cent results in the last five years, while it has zoomed 39 times from its Covid-19 lows at Rs 6.

Promoters hold 74.96 per cent share in Adani Power as of March 31, 2026, while 30 Mutual Funds held 3.62 per cent stake in it. FPIs owned more than 11.75 per cent stake in it, while nearly 20.55 lakh retail investors owned 5.4 per cent stake in the company as of Q4FY26.

Among the NIfty50 constituents, Adani Enterprises, the flagship company of Adani Group, surged 4.45 per cent to Rs 2,515, commanding a total market capitalization of Rs 3.25 lakh crore. Similarly, Adani Ports jumped 5.5 per cent to Rs 1,748.60, with its market valuation hitting Rs 4 lakh crore mark.

Adani Power Q4 results

For the quarter ended on March 31, Adani Power reported a 64.3 per cent rise in the net profit on a year-on-year (YoY) basis at Rs 4,271 crore. However, its revenue remained largely flat at Rs 14,223.09 crore, with Ebitda surging 27.15 per cent YoY to Rs 6,598.47 crore, with margins coming in at 33.27 per cent.

Its power sales volumes increased to 27.2 billion units (BU) for the reported period, while Adani Power has announced a 1,600 MW long-term PPA from Maharashtra's distribution utility. Its installed capacity reached 18,150 MW at the end of the quarter, said the company in its earnings.
 

Adani Power target price

"March quarter Ebitda was 7 per cent given better than expected realisation and utilisation. We largely retain our FY27E-28E Ebitda estimates. Thermal tariff PPAs have been signed at close to Rs 6/unit, leading to better profitability for FY28E-30E. FY26 capacity is 18.2 GW, and it should rise by at least 1.7x to 31 GW by 2030 and management's aim is to reach 42 GW by 2032," said Jefferies.

The overseas brokerage firm raised its target price to Rs 255 as we roll over and raised its multiple to 20 times FY28E, given rising power demand and healthy growth prospects for the next 3-4 years. Its 20 times multiple is a 100 per cent premium to NTPC’s implied 10 times multiple given faster growth, it added.

Adani Power has tied up almost all of its operational capacity with PPAs. Moreover, it has signed 14GW of under-construction capacity with PPAs at attractive tariffs. State DISCOMs are in the process of floating new PPAs for ~13GW capacity. As a result, we expect new tenders from state DISCOMs to improve the outlook for united capacity, said ICICI Securities.

"Operationally, generation was flat during the quarter at 27BU. It sold 19 per cent in the merchant market, where realisation was lower due to subdued power demand. It reported earnings in line with estimates. With a shrinking merchant footprint, we expect improved earnings in FY27. However, the stock price has seen a sharp run-up recently," it added and downgraded trhe stock to 'add' with a target price of Rs 233.

Adani Power reported Q4FY26 revenue of Rs 14,600 crore, driven by high plant uptime and higher operating capacity despite lower merchant prices and softer imported coal prices. Ebitda margin improved, driven by higher PPA tariff contribution and greater operating efficiency, partially offset by lower merchant realisation, said JM Financial Ltd.

"Due to traction in power demand and higher thermal PLF, we have revised our estimated PLF for both years, FY27 and FY28 to 70 per cent. The stock has run up 45 per cent-plus over the last one month and is trading at 17 times EV/EBITDA. We downgrade it to 'reduce' with a revised target of Rs 202 (earlier Rs 177) while recognising consistent yearly capacity addition and EBITDA growth," it adds.