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Adani Power Surges on Motilal Oswal Buy Call
3 Sep
Summary
- Motilal Oswal initiated a 'Buy' call with a target price of Rs 250.
- Adani Power is India's largest private thermal power producer.
- Firm expected to benefit from capacity build-out and limited competition.
Adani Power's stock experienced a notable surge as Motilal Oswal initiated coverage with a 'Buy' recommendation and set a target price of Rs 250 per share. The brokerage cited ambitious growth plans, a strong execution history, and potential diversification into nuclear energy as factors supporting a positive outlook.
As of the first quarter of FY27, Adani Power stands as India's largest private thermal power producer, boasting a capacity of approximately 18 GW. This positions the company to capture a substantial share of India's private and aggregate coal and lignite-based power generation.
The company is anticipated to be a primary beneficiary of India's expanding thermal capacity pipeline, projected at 86 GW by the Central Electricity Authority. With limited competition expected from entities like NTPC, which tends to focus on regulated projects, Adani Power is well-placed for growth.
Motilal Oswal forecasts an EBITDA compound annual growth rate of 21% and a profit after tax CAGR of 9% from FY26 to FY29, with significant capacity additions planned. The brokerage values Adani Power at 16x FY29E EBITDA, reflecting confidence in its future performance.
