Can Adani Power's Expansion Strategy Drive The Next Phase Of Growth?
IIFL Capital has reiterated its Buy rating on Adani Power Ltd. with a target price of ₹240, compared with the current market price of around ₹218. The brokerage believes Adani Power's counter-cyclical investment strategy and execution capabilities position it among India's fastest-growing private power generators.
Key Investment Highlights
- Maintains Buy recommendation with a target price of ₹240.
- Large under-construction capacity expected to drive earnings growth.
- Forecasts nearly 20% EBITDA CAGR during FY26–FY29.
- Strong execution track record in thermal power projects.
- Growth optionality from planned nuclear and hydro power projects.
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Why Is IIFL Positive?
The brokerage believes Adani Power has successfully acquired stressed power assets at attractive valuations while locking in equipment costs ahead of the industry's next investment cycle. It also expects free cash flow to improve significantly as new projects become operational over the next few years.
Investor Takeaway
Indian-Share-Tips.com Nifty Expert Gulshan Khera, CFP®, who is also a SEBI Regd Investment Adviser, observes that Adani Power continues to benefit from India's long-term power demand outlook. Investors should monitor execution timelines, fuel availability, regulatory developments and project commissioning, as these will remain the primary drivers of future earnings growth.
Disclaimer: Brokerage recommendations are opinions and not guarantees of future performance. Investors should conduct their own research before investing.
