ADANIPOWER - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 4.2

Let’s plug into the fundamentals of Adani Power Ltd. (ADANIPOWER) — a dominant player in India’s thermal energy space with high efficiency metrics and compelling valuation signals.

⚡ Financial Performance Snapshot

Profitability

ROE: 25.7% and ROCE: 22.5% — exceptional! Reflects strong return on capital and equity.

EPS: ₹33.6 — impressive earnings capacity relative to current price.

PAT dipped slightly from ₹2,940 Cr to ₹2,599 Cr; however, overall profitability remains robust.

Balance Sheet Health

Debt-to-equity: 0.70 — moderate leverage for a capital-intensive utility; indicates prudent debt management.

Dividend Yield: 0.00% — zero payout, suggesting reinvestment of profits into future expansion.

📊 Valuation Metrics

Metric Value Comment

P/E Ratio 17.9 In line with Industry PE — fair valuation

P/B Ratio ~4.06 Slightly elevated due to strong earnings history

PEG Ratio 0.48 🚀 Signifies undervalued growth — a green flag

Intrinsic Value ✅ Likely close to CMP Suggests alignment of price and earnings fundamentals

🔌 Business Model & Competitive Edge

Adani Power is a leader in thermal energy generation, with significant installed capacity across India.

Benefits from group infrastructure synergies, captive coal mines, and streamlined logistics.

FII Holding ↑ +0.10% and DII Holding ↑ +0.12% signal quiet but positive institutional sentiment.

Strategic power purchase agreements (PPAs) offer stable revenue visibility.

📉 Technical Overview

RSI: 54.5 — neutral to mildly bullish; momentum has room to run.

MACD: 2.66 — positive divergence; uptrend may resume.

Trading above DMA 50 (₹575) and DMA 200 (₹558) — confirms bullish undertone.

52W Range: ₹431–₹753, current price sits mid-spectrum — favorable for accumulation.

🎯 Entry Zone & Holding Strategy

Suggested Entry Zone: ₹560–₹585 — provides value with momentum support.

Ideal for long-term holders banking on

Stable cash flows from long-term PPAs

Infrastructure-led power demand

Regulatory evolution in favor of efficient thermal players

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