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Adani Power Retains ‘Buy’ From Ventura On Strategic Positioning, Capacity Expansion

Adani Power Retains ‘Buy’ From Ventura On Strategic Positioning, Capacity Expansion

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Ventura maintained its ‘buy’ rating on Adani Power Ltd. and raised its target price to Rs 806, implying an upside potential of 55%. Enhanced coal availability and business expansion are fueling growth, it said. The company is positioned for future growth through consistent investments in thermal power capacity.

Adani Power is strategically positioned with robust capacity expansion plans that is set to address the critical demand coming in. It is targeting a total capacity of 30.67 GW by financial year 2031. This is expected to increase the company’s share in India’s thermal power sector from 6% this year to 11% by financial year 2031.

Rising power demand, supported by lower imported coal prices and improved domestic coal availability, has boosted the company’s average plant load factor, which rose to the highest in seven years at 72%. The performance exceeds estimates, Ventura said.

There is a manageable net debt of Rs 30,985 crore that is supported by balanced sheet strength, according to the brokerage. The acquisition of three power plants — Coastal Energen Pvt., Lanco Amarkantak Power Ltd., and Dahanu Thermal Power plant — boosted operational capabilities.

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