Updated 12:49 IST, February 4th 2025
Adani Power Share Price Target: Jefferies Initiates Coverage With 30% Upside Forecast
Jefferies has recommended a 'BUY' rating for Adani Power (APL) with a CMP of Rs 509 and a target share price of Rs 660, projecting a potential upside of 30%

Jefferies India Private Limited has set its sights on Adani Power (APL), giving it a 'BUY' rating with an optimistic price target. At the current market price (CMP) of Rs 509 per share, the investment firm forecasts a substantial upside of 30%, targeting a share price of Rs 660.
Adani Power Share Price Target
Adani Power, India’s second-largest thermal power generation company, is poised to significantly boost its capacity from 17.6 GW to 30.7 GW by 2030. This ambitious growth plan underscores APL's proactive approach in meeting future energy demands. The company has secured requisite land and financing, while strategic collaborations with Bharat Heavy Electricals Limited ( BHEL ) for equipment delivery and in-house Engineering, Procurement, and Construction (EPC) capabilities ensure timely execution of its capital expenditure (capex).
Adani Power: Market Dynamics and Revenue Streams
With operations spanning 12 power plants across eight states, Adani Power has secured Power Purchase Agreements (PPA) for 87% of its capacity, providing revenue stability. The company's coastal plants, which account for 43% of its capacity, benefit from proximity to coal mines, enabling cost-effective coal sourcing. Moreover, its merchant capacity, expected to grow to 12-13% by FY30E, presents additional revenue opportunities, supported by anticipated recovery in power demand.
Adani Power: Financial Outlook and Valuation
Jefferies anticipates a gradual reduction in Adani Power's balance sheet leverage, projecting a decrease to 0.6x debt-to-equity by 2030 from current levels. The firm expects a robust Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) growth trajectory, with a compound annual growth rate (CAGR) of 19% post FY27E driven by new capacity additions.
Adani Power: Risks and Conclusion
Despite the optimistic outlook, Jefferies acknowledges potential risks, including historical PPA issues, variability in merchant realizations, demand fluctuations, and payment delays related to specific projects such as the Godda power plant.
In conclusion, Jefferies' initiation of coverage underscores Adani Power's strategic positioning in India’s power sector, backed by ambitious growth plans and strategic initiatives aimed at maximizing shareholder value amidst evolving market dynamics.
Published 12:17 IST, February 4th 2025