Is Adani Power the Right Investment? Buy Rating with Target Price of Rs 187!
Synopsis
Antique Stock Broking has initiated coverage on Adani Power Limited, assigning a 'Buy' rating with a target price of Rs 187. The stock offers a potential upside of 30%, backed by substantial capacity expansion plans and increasing power demand in India. The company is set for significant growth, reinforcing its position as a leading power producer.
Key Takeaways
Target price set at Rs 187 30% upside potential Capacity expansion to 41.9 GW by FY33 Strong earnings visibility with 90% operational capacity tied in long-term agreements Projecting net debt-to-EBITDA below 1x by FY32
New Delhi, Dec 16 (NationPress) Antique Stock Broking has recently started coverage on Adani Power Limited (APL), issuing a ‘Buy’ recommendation and establishing a target price of Rs 187 per share.
Currently trading at approximately Rs 144, the brokerage anticipates an upside potential of around 30 percent. This optimism is fueled by robust earnings visibility, extensive capacity expansion strategies, and an improving balance sheet.
According to the report, Adani Power is poised to enter a significant earnings upcycle, driven by a notable increase in capacity and the growing power demand across India.
The company aims to more than double its installed capacity, expanding from 18.15 GW in FY25 to 41.9 GW by FY33.
This expansion cements Adani Power's position as the most efficient private sector baseload power producer in the nation, showcasing a remarkable turnaround from its previous status as a challenged thermal power player.
The report notes that India is currently experiencing a structural upcycle in power demand, with electricity consumption projected to rise at a 6 percent annual rate from FY22 to FY32.
Increased demand from sectors such as electric vehicles, data centers, artificial intelligence, and manufacturing is further amplifying peak power needs, reinforcing the necessity for dependable coal-based power generation.
Antique highlights that Adani Power has established itself as a leader in the current state-led thermal power procurement cycle.
The company has secured about 70 percent of the awarded capacity thus far, winning 12.4 GW out of a total of 17.7 GW allotted.
This achievement underscores its cost advantage, strong execution skills, and project readiness.
The company's earnings visibility remains robust, with nearly 90 percent of its operational capacity and around 67 percent of its total 41.9 GW portfolio already secured under long-term power purchase agreements.
Antique forecasts that Adani Power’s consolidated revenue, EBITDA, and profit after tax will see healthy growth rates of 16 percent, 19 percent, and 17 percent respectively between FY25 and FY32.
The brokerage also indicated that the company plans to finance approximately 60 percent of its nearly Rs 2 lakh crore capital expenditure through internal accruals.
This strategy is expected to facilitate steady deleveraging, with net debt-to-EBITDA anticipated to drop below 1x by FY32, while return on equity is projected to remain above 15 percent.
Point of View
I recognize the significance of Adani Power's current trajectory. The company's strategic expansion plans and robust demand for power position it as a key player in India's energy sector. It's vital for investors to consider both the growth potential and the inherent risks involved.
NationPress
2 May 2026
Frequently Asked Questions
What is the current target price for Adani Power?
The target price set by Antique Stock Broking for Adani Power is Rs 187 per share.
What is driving the potential growth of Adani Power?
The growth is driven by strong earnings visibility, significant capacity expansion, and increasing power demand in India.
How much capacity does Adani Power plan to expand?
Adani Power plans to expand its installed capacity from 18.15 GW in FY25 to 41.9 GW by FY33.
What percentage of capacity has Adani Power secured in the procurement cycle?
Adani Power has secured around 70% of the awarded capacity, winning 12.4 GW out of the total 17.7 GW.
What are the projected growth rates for Adani Power's revenue and profit?
Antique expects Adani Power’s revenue, EBITDA, and profit after tax to grow at 16%, 19%, and 17% respectively between FY25 and FY32.
