⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
ADANIPOWER - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.1
| Stock Code | ADANIPOWER | Market Cap | 2,97,368 Cr. | Current Price | 154 ₹ | High / Low | 183 ₹ |
| Stock P/E | 29.0 | Book Value | 24.8 ₹ | Dividend Yield | 0.00 % | ROCE | 23.7 % |
| ROE | 27.0 % | Face Value | 2.00 ₹ | DMA 50 | 144 ₹ | DMA 200 | 137 ₹ |
| Chg in FII Hold | 0.11 % | Chg in DII Hold | 0.71 % | PAT Qtr | 2,047 Cr. | PAT Prev Qtr | 2,735 Cr. |
| RSI | 64.0 | MACD | 2.28 | Volume | 3,00,69,254 | Avg Vol 1Wk | 6,28,95,302 |
| Low price | 92.4 ₹ | High price | 183 ₹ | PEG Ratio | 0.91 | Debt to equity | 0.94 |
| 52w Index | 68.3 % | Qtr Profit Var | -32.6 % | EPS | 5.32 ₹ | Industry PE | 24.6 |
📊 Core Financials
- Profitability: PAT declined from ₹2,735 Cr. to ₹2,047 Cr. (Qtr Profit Var: -32.6%)
- Margins: ROE at 27.0% and ROCE at 23.7% indicate strong efficiency
- Debt: Debt-to-equity ratio at 0.94 shows moderate leverage
- Cash Flow: EPS at ₹5.32 is modest relative to market cap
💰 Valuation Indicators
- P/E Ratio: 29.0 vs Industry PE of 24.6 → slightly overvalued
- P/B Ratio: Current Price ₹154 vs Book Value ₹24.8 → ~6.2x book
- PEG Ratio: 0.91 → growth priced reasonably
- Intrinsic Value: Fair valuation but trading at a premium
🏢 Business Model & Health
- Market Cap: ₹2,97,368 Cr. reflects large presence in power generation
- Dividend Yield: 0.00% indicates reinvestment focus
- Competitive Advantage: Strong positioning in thermal and renewable power
- Overall Health: Efficiency metrics are strong, but profit volatility raises caution
🎯 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive near ₹135–145 for accumulation
- Long-Term Holding: Suitable for long-term investors if earnings stabilize
✅ Positive
- Strong ROE (27.0%) and ROCE (23.7%)
- Moderate debt-to-equity ratio (0.94)
- Institutional interest rising with FII (+0.11%) and DII (+0.71%) increases
⚠️ Limitation
- P/E ratio (29.0) slightly above industry average
- P/B ratio ~6.2x indicates premium valuation
- No dividend yield (0.00%)
📉 Company Negative News
- Quarterly PAT declined significantly (-32.6%)
- High volatility in earnings
📈 Company Positive News
- Strong efficiency metrics (ROE and ROCE)
- Institutional holdings increased (FII and DII)
🏭 Industry
- Industry PE: 24.6, slightly lower than ADANIPOWER’s PE
- Power sector benefits from rising demand and renewable energy transition
🔎 Conclusion
ADANIPOWER demonstrates strong efficiency metrics with healthy ROE and ROCE, supported by rising institutional interest.
However, profit volatility and premium valuation compared to industry peers raise caution.
The stock is suitable for long-term investors focused on the power sector, with entry recommended near ₹135–145 to balance risk and reward.