⚠ 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: 3.2
| Stock Code | ADANIPOWER | Market Cap | 2,79,250 Cr. | Current Price | 145 ₹ | High / Low | 183 ₹ |
| Stock P/E | 27.2 | Book Value | 24.8 ₹ | Dividend Yield | 0.00 % | ROCE | 23.7 % |
| ROE | 27.0 % | Face Value | 2.00 ₹ | DMA 50 | 142 ₹ | DMA 200 | 134 ₹ |
| Chg in FII Hold | 0.11 % | Chg in DII Hold | 0.71 % | PAT Qtr | 2,047 Cr. | PAT Prev Qtr | 2,735 Cr. |
| RSI | 56.1 | MACD | -2.09 | Volume | 5,90,71,074 | Avg Vol 1Wk | 2,42,49,634 |
| Low price | 92.4 ₹ | High price | 183 ₹ | PEG Ratio | 0.86 | Debt to equity | 0.94 |
| 52w Index | 57.9 % | Qtr Profit Var | -32.6 % | EPS | 5.32 ₹ | Industry PE | 22.5 |
📊 Core Financials
- Revenue & Profitability: PAT declined from 2,735 Cr. to 2,047 Cr. (–32.6% variance), showing earnings pressure.
- Margins: ROE at 27.0% and ROCE at 23.7% are strong, reflecting solid efficiency and profitability.
- Debt: Debt-to-equity ratio of 0.94 indicates moderate leverage, manageable but worth monitoring.
- Cash Flow: Strong profitability supports cash generation, though declining PAT raises caution.
💹 Valuation Indicators
- P/E Ratio: 27.2 vs. industry average of 22.5 — slightly expensive.
- P/B Ratio: Current price (₹145) vs. book value (₹24.8) → ~5.8x, premium valuation.
- PEG Ratio: 0.86, suggesting growth is reasonably priced.
- Intrinsic Value: Valuation moderately stretched but supported by strong ROE/ROCE.
🏢 Business Model & Competitive Advantage
- Adani Power operates in thermal and renewable energy generation, with a large installed capacity across India.
- Competitive advantage lies in scale, integration with Adani Group’s infrastructure, and long-term power purchase agreements.
📈 Technicals & Entry Zone
- DMA 50 (₹142) and DMA 200 (₹134) are below current price, showing bullish support.
- RSI at 56.1 indicates neutral momentum; MACD negative suggests mild weakness.
- Entry Zone: Attractive near ₹135–145 for accumulation.
- Long-Term Holding: Suitable for investors seeking exposure to power sector growth, but earnings volatility must be monitored.
✅ Positive
- Strong ROE (27.0%) and ROCE (23.7%).
- Moderate debt-to-equity ratio (0.94).
- Institutional support with FII (+0.11%) and DII (+0.71%) holdings increasing.
⚠️ Limitation
- P/E ratio (27.2) is above industry average (22.5).
- P/B ratio (~5.8x) indicates premium valuation.
- Dividend yield of 0.00% offers no immediate shareholder return.
📉 Company Negative News
- Quarterly PAT declined (–32.6%), showing earnings pressure.
- MACD negative (–2.09), indicating short-term weakness.
📈 Company Positive News
- EPS at ₹5.32 reflects earnings base despite volatility.
- Institutional confidence increased with both FII and DII holdings rising.
🏭 Industry
- Power sector benefits from rising demand and government infrastructure push.
- Industry average P/E (22.5) highlights Adani Power’s slightly premium valuation.
🔎 Conclusion
- Adani Power shows strong efficiency ratios and institutional support but faces declining profitability.
- Valuations are moderately stretched compared to industry averages.
- Recommendation: Accumulate near ₹135–145 for long-term holding. Suitable for investors seeking exposure to India’s power sector, but earnings volatility must be closely monitored.