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Adani Power Remains A Long-Term Power Demand Play, Says ICICI Securities After Solid Q1 — Check Target Price, Upside

Adani Power reported a good quarter with Ebitda at Rs 6,700 crore (+16% YoY), driven by increased generation and improved realisation, adds the brokerage.

Adani Power Remains A Long-Term Power Demand Play, Says ICICI Securities After Solid Q1 — Check Target Price, Upside
Over the last few quarters, Adani has won a fair share of long-term PPAs, reducing merchant capacity to merely 5% vs 20% YoY.
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Adani Power Ltd.
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NDTV Profit's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer NDTV Profit's subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Securities Report

Domestic brokerage ICICI Securities has reiterated its 'Add' rating on Adani Power Ltd. and maintained its target price at Rs 233, valuing the stock at 16x FY28E Ebitda.

Adani Power Q1 Results Highlights

Adani Power reported a good quarter with Ebitda at Rs 6,700 crore (+16% YoY), driven by increased generation and improved realisation.

Realisation for power purchase agreement/merchant-based units increased 8%/13% YoY in Q1 FY27.

Generation increased by 17% YoY to 28.7 billion units on the back of improved demand, which led to improved offtake under PPAs.

Plant load factor stood at 78% vs 67% YoY. Note that ~1.2GW of additional capacity was tied up with PPAs compared to last year.

Over the last few quarters, Adani has won a fair share of long-term PPAs, reducing merchant capacity to merely 5% vs 20% YoY. Moreover, during the quarter, it acquired a minority stake in 2.2GW Jai Prakash Ventures (JPVL), with an optionality to scale up via stake increases and capacity additions.  

Key risk: Delay in capacity commissioning.

Click on the attachment to read the full report:

Isec Adani Power Q1.pdf
VIEW DOCUMENT

ALSO READ: Adani Green Energy Shares Get 25% Target Price Upgrade After Q1; Here's Why ICICI Securities Remains Bullish

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