Motilal Oswal Rates Adani Power Buy at Rs 250 Target Price, Forecasts 20% Upside
Brokerage Motilal Oswal issued a Buy rating on Adani Power with a price target of Rs 250. The firm cites significant capacity expansion plans and nuclear power entry as key drivers for the investment thesis.
Motilal Oswal launched coverage on Adani Power with a Buy rating and set a target price of Rs 250, estimating 20% upside from the report's reference level. The brokerage valued the company at 16 times its expected FY29 EBITDA. Shares traded at Rs 211 on Thursday, rising nearly 2% after closing the previous day at Rs 207.70. Despite recent weekly declines, trading volume reached 1.03 crore shares, and market capitalization stood at Rs 4.05 lakh crore.
Analysts highlighted Adani Power's capacity expansion as a primary catalyst. The firm is India's largest private thermal power producer with approximately 18 GW of operational capacity. Planners aim to double this output to 42 GW by fiscal year 32 through projects requiring an investment of Rs 2 lakh crore. Roughly 95% of current operations and 56% of new capacity are secured under long-term purchase agreements.
The firm projected EBITDA growth at a 21% compound annual rate between FY26 and FY29. Adjusted profit is forecast to increase at a 9% pace over the same period, with revenue expected to climb from Rs 66,640 crore in FY27.
