ADANIPOWER - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.2
| Stock Code | ADANIPOWER | Market Cap | 4,27,831 Cr. | Current Price | 222 ₹ | High / Low | 226 ₹ |
| Stock P/E | 38.9 | Book Value | 27.5 ₹ | Dividend Yield | 0.00 % | ROCE | 19.2 % |
| ROE | 22.1 % | Face Value | 2.00 ₹ | DMA 50 | 174 ₹ | DMA 200 | 148 ₹ |
| Chg in FII Hold | 0.09 % | Chg in DII Hold | 0.28 % | PAT Qtr | 3,087 Cr. | PAT Prev Qtr | 2,047 Cr. |
| RSI | 82.7 | MACD | 17.7 | Volume | 7,05,35,661 | Avg Vol 1Wk | 5,95,01,029 |
| Low price | 101 ₹ | High price | 226 ₹ | PEG Ratio | 17.5 | Debt to equity | 0.93 |
| 52w Index | 96.5 % | Qtr Profit Var | 30.9 % | EPS | 5.70 ₹ | Industry PE | 30.5 |
📈 Positive
- Large market capitalization of ₹4,27,831 Cr. ensures scale and liquidity in the power sector.
- Strong ROCE (19.2%) and ROE (22.1%) highlight efficient capital utilization.
- EPS of ₹5.70 supports earnings visibility.
- Quarterly PAT growth (+30.9%) shows robust earnings momentum (₹3,087 Cr. vs ₹2,047 Cr.).
- Debt-to-equity ratio of 0.93 is manageable for a capital-intensive sector.
- FII holdings increased (+0.09%) and DII holdings rose (+0.28%), reflecting institutional confidence.
⚠️ Limitation
- P/E ratio of 38.9 vs industry average of 30.5 indicates stretched valuation.
- PEG ratio of 17.5 suggests growth priced expensively.
- Dividend yield of 0.00% offers no income support.
- RSI at 82.7 shows overbought conditions, limiting near-term upside.
- Price trading near 96.5% of 52-week range, indicating risk of exhaustion.
🚨 Company Negative News
- Elevated debt levels compared to peers.
- Overbought technical indicators raise caution for fresh entry.
- Valuation multiples remain stretched.
🌟 Company Positive News
- PAT surged significantly quarter-on-quarter (+30.9%).
- Institutional investors (FII & DII) increased holdings.
- MACD positive (17.7), reinforcing bullish momentum.
🏭 Industry
- Industry P/E of 30.5 highlights ADANIPOWER’s premium valuation.
- Power sector demand remains strong, supported by infrastructure growth.
- Competitive advantage lies in scale, integrated operations, and rising demand for electricity.
📝 Conclusion
ADANIPOWER is fundamentally decent with strong profit growth and efficiency metrics, but valuations are stretched and debt remains high.
🔑 **Entry Zone:** Attractive near ₹180–₹200, closer to support levels and valuation comfort.
📌 **Long-term Holding Guidance:** Suitable for medium-to-long term (3–5 years) if earnings growth sustains and debt levels reduce. Existing holders may consider partial profit booking near ₹220–₹225 while monitoring debt reduction and sustained earnings growth.
This positions ADANIPOWER as a fundamentally strong but valuation-stretched candidate. Would you like me to extend this into a sector overlay benchmarking (ADANIPOWER vs NTPC, Tata Power, and JSW Energy) to highlight relative valuation and efficiency gaps?