Adani Power Share Price Target 2024, 2025, 2026, 2027, 2030 Prediction: Buy or Sell?
Adani Power Ltd. is an Indian multinational thermal power producer that specializes in the generation and transmission of electricity. The company, part of the Adani Group, operates under long-term power purchase agreements and on a merchant basis within India. In this article, let’s look at the Adani Power Share Price Target 2024, 2025, 2026, 2027 2030.
In this blog post, we will also analyze Adani Power’s business, competitors, growth opportunities, strengths, weaknesses, opportunities, threats, financials, and key things to watch out for in Adani Power Stock.
Consider reading: Best Renewable Stocks in India
Page Contents
Adani Power Share Price Target 2024, 2025, 2026, 2027, 2030
| Year | Minimum Share Price Target | Maximum Share Price Target | Average Share Price Target |
|---|---|---|---|
| 2024 | ₹640 | ₹820 | ₹730 |
| 2025 | ₹800 | ₹1,025 | ₹913 |
| 2026 | ₹1,000 | ₹1,281 | ₹1,141 |
| 2027 | ₹1,250 | ₹1,602 | ₹1,426 |
| 2028 | ₹1,563 | ₹2,002 | ₹1,782 |
| 2029 | ₹1,953 | ₹2,502 | ₹2,228 |
| 2030 | ₹2,441 | ₹3,128 | ₹2,785 |
| 2031 | ₹3,052 | ₹3,910 | ₹3,481 |
| 2032 | ₹3,815 | ₹4,888 | ₹4,351 |
| 2033 | ₹4,768 | ₹6,109 | ₹5,439 |
The Adani Power Share Price Target for 2024 is ₹730, for the year 2025 ₹913, for the year 2026 it is ₹1,141 and for the year 2030 it is ₹2,785.
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Adani Power Share Price Today Live Chart and History
Adani Power Share: Buy or Sell?
Adani Power Share Price Target 2024
| Year | Minimum Price Target | Maximum Price Target | Average Price Target |
|---|---|---|---|
| 2024 | ₹640 | ₹820 | ₹730 |
Looking at the stellar moves recently made by Adani Power Stock, the Adani Power Share Price Target 2024 is ₹730.
Adani Power Share Price Target 2025
| Year | Minimum Price Target | Maximum Price Target | Average Price Target |
|---|---|---|---|
| 2025 | ₹800 | ₹1,025 | ₹913 |
The outlook for Adani Power Shares looks good in 2025, the Adani Power Share Price Target 2025 is ₹913.
Adani Power Share Price Target 2026
| Year | Minimum Price Target | Maximum Price Target | Average Price Target |
|---|---|---|---|
| 2026 | ₹1,000 | ₹1,281 | ₹1,141 |
The Adani Power Stock is expected to benefit from the power demand in India, the Adani Power Share Price Target 2026 is ₹1,141.
Adani Power Share Price Target 2030
| Year | Minimum Price Target | Maximum Price Target | Average Price Target |
|---|---|---|---|
| 2030 | ₹2,441 | ₹3,128 | ₹2,785 |
The Adani Power Stock is expected perform well in the longterm, the Adani Power Share Price Target 2020 is ₹2,785.
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Financial Highlights of Adani Power Ltd.
Here is a financial snapshot of Adani Power Ltd. for the last 3 years:
| Financial Header | Mar 2021 | Mar 2022 | Mar 2023 |
|---|---|---|---|
| Sales | 26,221 | 27,711 | 38,773 |
| Expenses | 17,533 | 17,830 | 28,677 |
| Operating Profit | 8,688 | 9,881 | 10,096 |
| OPM % | 33% | 36% | 26% |
| Other Income | 1,909 | 3,908 | 4,216 |
| Interest | 5,106 | 4,095 | 3,334 |
| Depreciation | 3,202 | 3,118 | 3,304 |
| Profit before tax | 2,289 | 6,577 | 7,675 |
| Tax % | 45% | 25% | -40% |
| Net Profit | 1,270 | 4,912 | 10,727 |
| EPS in Rs | 3.29 | 12.73 | 27.81 |
| Dividend Payout % | 0% | 0% | 0% |
It is highly recommended to understand the financial metrics before we arrive at the Adani Power Share Price Target. Looking at the above table there is consistent growth in Adani Power’s Net Profit, EPS, and Sales figures in the last 3 years which is a good positive sign for the Adani Power Share.
Shareholding Pattern for Adani Power
| Share Holder | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 |
|---|---|---|---|---|---|---|---|
| Promoters | 68.08 | 73.07 | 74.97 | 74.97 | 74.97 | 74.97 | 74.97 |
| FIIs | 22.12 | 11.28 | 10.02 | 12.38 | 11.52 | 11.31 | 11.70 |
| DIIs | 2.67 | 9.14 | 10.11 | 8.29 | 7.08 | 5.56 | 0.01 |
| Public | 7.12 | 6.51 | 4.90 | 4.35 | 6.43 | 8.15 | 13.32 |
Take away from the above Shareholding Pattern for Adani Power:
- Promoters: The percentage of shares held by promoters saw a substantial increase between Mar 2017 and Mar 2018, from 68.08% to 73.07%. After that, their shareholding percentage remained constant at 74.97%. This shows a strong commitment from the promoters toward the company, which can be seen as a positive sign from an investor’s perspective.
- Foreign Institutional Investors (FIIs): The share held by FIIs decreased significantly from Mar 2017 to Mar 2018, dropping from 22.12% to 11.28%. It continued to decrease albeit at a slower pace until Mar 2021. There was a slight increase in Mar 2022 and Mar 2023, but it remains notably less than in Mar 2017. This could be an indication of lessening foreign investor confidence in the company.
- Domestic Institutional Investors (DIIs): There was a substantial increase in DII ownership from Mar 2017 to Mar 2018, with holdings increasing from 2.67% to 9.14%. However, their share has been gradually decreasing since then, hitting a low of 0.01% in Mar 2023. The drop in the domestic institutional holding could potentially signal reduced confidence from the domestic institutions.
- Public: The percentage of shares held by the public decreased steadily from Mar 2017 to Mar 2020. However, there’s been a notable increase in public shareholding from Mar 2020 to Mar 2023, almost tripling from 4.35% to 13.32%. This could indicate growing interest and confidence from retail investors during this period.
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Business Plan and Strategy of Adani Power
Adani Power‘s business strategy is centered around four key areas: thermal power, renewable energy, transmission, and distribution.
The company plans to achieve its objectives by:
- Expanding its thermal power portfolio and market share through new project acquisitions and improved operational efficiency
- Strengthening its renewable energy portfolio by developing solar and wind power projects across India
- Diversifying its revenue streams by investing in transmission and distribution infrastructure and services
- Enhancing its environmental and social performance through the adoption of best practices and technologies
Adani Power Competition Landscape
Adani Power’s primary competitors in the thermal power sector include:
- NTPC Ltd., the largest state-owned power producer in India with an installed capacity of 65,810 MW
- Tata Power Ltd., the largest integrated power company in India with an installed capacity of 12,772 MW
- JSW Energy Ltd., a leading private power producer in India with an installed capacity of 4,559 MW
Competitive Advantages of Adani Power
Adani Power’s competitive edge is its ability to offer reliable and affordable power to a variety of customers across India, utilizing its diversified portfolio of thermal and renewable energy sources.
The company’s strong track record of project execution and operational excellence, characterized by high plant availability and efficiency, further strengthens its competitive position.
Adani Power’s highly skilled and experienced workforce enables it to deliver high-quality products and services to its customers.
Growth Prospects for Adani Power
Adani Power’s growth prospects are propelled by the increasing demand for its power in various sectors, including industrial, commercial, residential, and agricultural, within India.
The company also anticipates higher growth opportunities in the renewable energy sector, with a target of achieving 25 GW of renewable capacity by 2025.
Additionally, Adani Power expects to benefit from growing demand for transmission and distribution services, as it plans to expand its network throughout India.
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Strengths of Adani Power Stock
- Diverse and Integrated Operations: Adani Power has a mix of different types of power plants – coal, gas, solar, and wind – spread across various states. This variety helps the company stay strong even when market conditions change. They work closely with other Adani companies like Adani Enterprises and Adani Ports, giving them easy access to coal, transportation, and power transmission.
- Large and Efficient Power Generation: Adani Power is India’s largest private company producing thermal power with about 14,000 MW capacity. Their plants are used well, showing a higher plant load factor (PLF) of 58.3% in the second quarter of FY 2023-24, which is above India’s average. They also use advanced technology to keep emissions low.
- Strong Financial Growth: Despite Covid-19 challenges, Adani Power has shown impressive financial results. In the second quarter of FY 2023-24, their revenue jumped to Rs. 12,991 crore, and net profit rose to Rs. 6,594 crore. This increase was due to more power sales, reduced fuel costs, and higher prices for power sold on the open market. They are planning to expand their power generation by more than 8,000 MW in states like Jharkhand, Madhya Pradesh, Gujarat, Rajasthan, and Karnataka.
- Supportive Government Policies: The company benefits from supportive government policies and decisions by regulatory bodies like the CERC and APTEL. These decisions allow Adani Power to manage costs of imported coal and get payments from state power distributors. Also, new government policies like the Electricity Amendment Bill 2023 are expected to improve competition and transparency in the power sector.
Weaknesses of Adani Power Stock
- Heavy Dependence on Coal and Imported Coal: About 90% of Adani Power’s energy comes from coal, and a significant portion of this is imported, particularly for their large Mundra power plant. This reliance on imported coal puts the company at risk due to changing coal prices, availability, quality issues, and foreign exchange rate fluctuations. Additionally, using coal raises environmental concerns, like greenhouse gas emissions, air pollution, and problems related to water use and land acquisition.
- Limited Market Share and State Presence: Adani Power holds a relatively small portion of the Indian power sector market, around 4.3%, which is much lower than some of its competitors like NTPC. The company operates primarily in a few states – Gujarat, Maharashtra, Haryana, Karnataka, and Jharkhand. This limited geographical presence and the competition from other power producers and state-owned power distribution companies (DISCOMs) could be challenging for expanding their market share.
- High Debt and Interest Costs: The company faces a significant financial burden due to its high debt and interest costs. As of September 2023, Adani Power’s total debt was around Rs. 49,200 crore, with an interest cost of Rs. 1,390 crore for the second quarter of FY 2023-24. These financial pressures can affect the company’s profitability, limit its ability to fund new projects or repay existing loans, and restrict dividend payments to shareholders.
SWOT Analysis of Adani Power Stock
Strengths:
- Diverse Business and Cooperation with Other Adani Companies: Adani Power has a wide range of power plants (coal, gas, solar, wind) in different states and works closely with other Adani group companies, which helps in getting coal supply, logistics, and power transmission.
- Large and Efficient Power Generation: It’s the largest private thermal power producer in India with high efficiency in using its power plants.
- Strong Financial Growth: The company has shown impressive financial results, growing revenue and profit, even during challenging times like the Covid-19 pandemic.
- Support from Government Policies: It benefits from favorable government policies and decisions by regulatory bodies, helping the company manage costs and improve operations.
Weaknesses:
- Reliance on Coal and Imported Coal: Most of Adani Power’s energy generation depends on coal, a lot of which is imported. This makes them vulnerable to price changes and environmental issues.
- Limited Market Share and State Presence: The company has a smaller market share compared to some competitors and operates in only a few states.
- High Debt: They have a considerable amount of debt, which affects their ability to invest in new projects or pay dividends to shareholders.
Opportunities:
- Moving Towards Renewable Energy: Diversifying into renewable energy sectors like solar and wind can be a big opportunity.
- Expanding to New Areas: Entering new markets and regions can help grow their business.
- Rising Power Demand in India: With India’s increasing energy needs, there’s a huge potential for growth.
- Adopting New Technologies: Using innovative technologies can improve efficiency and reduce costs.
Threats:
- Fluctuating Coal Prices and Supply Issues: Changes in coal prices and supply can significantly impact the business.
- Environmental and Social Challenges: Facing regulations related to environmental and social concerns can affect operations.
- Regulatory and Legal Issues: Uncertainties in regulations and potential legal disputes can pose risks.
- Competition: Facing tough competition from other power companies and state-owned DISCOMs.
In summary, Adani Power has several strengths like diversified operations and strong financial performance, but also faces challenges like dependence on coal and high debt. The company has opportunities to grow, especially in renewable energy and new markets, but must also navigate threats like environmental concerns and competition.
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Closing Thoughts on Adani Power Share Price Target 2024, 2025,2026, 2027, 2030
In conclusion, Adani Power Ltd. is not just an energy company; it is an emblem of India’s energy future.
Its success story serves as a testament to the power of innovation, strategic planning, and steadfast commitment to serving the nation.
By continuing on its current trajectory, Adani Power is set to further etch its mark on India’s energy landscape, illuminating the path towards a sustainable and empowered future.
We touched on the Adani Power Share Price Target based on various parameters. We have tried to give you all the possible details on Adani Power company for you to make the right investment decision.
Before making any financial decision on investing in Adani Power Share, we recommend you do proper research and consult a financial advisor.
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FAQs on Adani Power Share Price Target 2024, 2025,2026, 2027, 2030
What is the Adani Power Share Price Target 2024?
According to market reports and analysis, in the year 2024, it is indicated that Adani Power’s share price is anticipated to range between a minimum target of ₹640, a maximum target of ₹820, and an average target of ₹730.
What is the future of Adani Power share in 2025?
In 2025, as per market reports and analysis, the projected Adani Power share price targets are expected to be a minimum of ₹800, a maximum of ₹1,025, and an average of ₹913.
What is Adani Power Share Price Target 2026?
In 2026, market expectations suggest that Adani Power’s share price is anticipated to range between a minimum target of ₹1,000, a maximum target of ₹1,281, with an average target of ₹1,141.
What is Adani Power Share Price Target 2030?
Looking ahead to 2030, according to market reports and analysis, the projected Adani Power share price targets indicate a minimum target of ₹2,441, a maximum target of ₹3,128, and an average target of ₹2,785.
Can I buy Adani Power stock?
Yes, you can conveniently purchase Adani Power shares through any broker by opening a demat account and completing the online KYC verification process. It’s a simple and secure way to invest in Adani Power stock.
