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.
Motilal Oswal Report
Domestic brokerage firm Motilal Oswal has initiated coverage on Adani Power Ltd. with a Buy rating and has set a target price of Rs 250, implying a potential upside of 20% from the reports current market price of Rs 208.
The brokerage's optimism is based on Adani Power's
- ambitious growth plans to raise the capacity up 2.3 times to 42GW by FY32,
- solid execution track record demonstrated by acquisition and turnaround of multiple distressed plants, and
- optionality from nuclear foray and limited competition in the thermal segment.
Adani Power is currently trading at an FY29E EV/Ebitda of 13.8x. The brokerage builds an Ebitda compound annual growth rate of 21% over FY26-29E, a PAT CAGR of 9% over FY26-29E, and capacity additions of 1.3/1.6/3.2GW in FY27/FY28/FY29.
The brokerage also highlights that Adani Power's substantial valuation premium over peers such as NTPC and JSW Energy is a function of-
- superior capital allocation with an average acquisition cost of Rs 35 m/MW, significantly below the greenfield thermal plant cost of Rs 120m,
- strong growth trajectory with Ebitda potential of Rs 80,00 crore post completion of the current capex cycle, and
- optionality from forays into nuclear.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
(Disclaimer: New Delhi Television is a subsidiary of AMG Media Networks Limited, an Adani Group Company.)
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
