1 hr ago
Motilal Oswal Initiates Buy Coverage on Adani Power
Motilal Oswal Financial Services thinks Adani Power’s shares could rise.
It gave the stock a Buy rating and a target price of ₹250.
The target is more than 20% above the cited price of ₹207.
The brokerage expects India to need more thermal power as electricity demand increases.
Adani Power plans to expand its capacity to 42GW by FY32.
It already operates about 18GW of thermal capacity and has additional projects in its pipeline.
The company is also expanding through new projects and acquisitions of distressed plants.
Motilal Oswal expects the company’s profits and operating earnings to grow over the next few years.
Motilal Oswal Financial Services initiated coverage of Adani Power with a Buy rating and a ₹250 target price.
The target implies more than 20% upside from the cited market price of ₹207 per share.
The brokerage expects Adani Power’s capacity to rise 2.3 times to 42GW by FY32.
Motilal Oswal cited rising electricity demand, thermal capacity needs and limited competition as key positives.
The brokerage projects FY27-FY29 EBITDA and adjusted PAT CAGRs of 21% and 9%, respectively.
- Who
- Motilal Oswal Financial Services and Adani Power Limited.
- What
- Motilal Oswal initiated Buy coverage on Adani Power with a ₹250 target price.
- Where
- India’s power sector.
- When
- The article discusses the FY27-FY32 outlook and reports the stock’s performance over periods ending in 2026.
- Why
- The brokerage expects rising electricity demand, increased thermal capacity requirements, Adani Power’s expansion plans and limited thermal competition to support the company.
Key facts
- Brokerage recommendation
- Buy rating from Motilal Oswal Financial Services.
- Target price
- ₹250 per share.
- Cited market price
- ₹207 per share.
- Planned capacity
- Adani Power aims to reach 42GW by FY32.
- Operational thermal capacity
- About 18GW at the end of FY26, according to the article.
- Expansion pipeline
- 23,720MW, backed by estimated capital expenditure of about ₹2 trillion.
- Valuation basis
- The target price is based on 16 times estimated FY29 EBITDA.
Quotes
Motilal Oswal Financial Services
Domestic brokerage house providing research coverage on Adani Power
“We initiate coverage on Adani Power Limited (APL) with a BUY rating and TP of INR250/sh. We like APL for 1) ambitious growth plans (capacity up 2.3x to 42GW by FY32), 2) solid execution track record demonstrated by acquisition and turnaround of multiple distressed plants, and 3) optionality from nuclear foray + limited competition in the thermal segment.”
livemint.com
“We see APL as the natural winner of India's upcoming thermal capacity build-out and beneficiary of a benign competitive environment.”
livemint.com
Sources
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