Adani Power shares may rally 18%, positioned as a pure play in India's thermal power space: InCred Equities
Live Events
(You can now subscribe to our
(You can now subscribe to our ETMarkets WhatsApp channel
Calling it a pure play on the Indian thermal space, domestic brokerage firm InCred Equities has initiated coverage on Adani Power Ltd (APL) with an 'add' rating and set a target price of Rs 649 per share, implying an upside potential of 17.8% from its previous closing price.The brokerage's outlook is based on the company's strong presence in the thermal power segment, brownfield expansion strategy, and deleveraging progress.According to InCred, Adani Power is a pure play in India's thermal power space with 87% of its capacity tied to long-term power purchase agreements (PPAs) that include a fuel cost pass-through mechanism.The company generated Rs 200 billion of recurring EBITDA in FY25, supported by this stable revenue mix. The remaining 17% of capacity is dedicated to merchant power, leveraging Indian Energy Exchange (IEX) prices with a realised average of Rs 5–6/kWh and a peak of Rs 10/kWh.Adani Power currently operates 17.55 GW of capacity and has outlined an expansion strategy to scale its installed capacity to 30.67 GW by FY30F. This includes a planned addition of 13.12 GW through brownfield projects such as Mahan Phase II (1.66 GW), Raipur Phase II (1.66 GW), Korba Revival (1.32 GW), and others.InCred noted that this growth strategy aligns with India's projected 5–6% annual power demand growth, with peak demand expected to reach 458 GW by FY32F.The domestic brokerage firm also highlighted that the company achieved a 71% plant load factor (PLF) in FY25 and generated Rs 564 billion in revenue for the same period. APL's inorganic growth strategy and expansion projects are expected to improve the industry PLF to 69% by FY30.On the financial side, Adani Power is expected to report an 11% EBITDA CAGR over FY25–28F, primarily driven by increased PLF and higher power generation from the merchant segment. The company plans to spend Rs 1,200 billion in capital expenditure for FY25, funded via internal accruals, and aims to reduce its net-debt-to-EBITDA ratio to 0.9x by FY30F from 1.5x in FY25.The brokerage notes potential downside risks related to execution delays in the 13.12 GW pipeline, lower-than-expected merchant realisation, and the timing of discom payment resolution.: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Indian Express
12 minutes ago
- Indian Express
VIPS Group ponzi scam: ED conducts searches in Kolhapur, Surat, Ahmednagar and Pune
The Enforcement Directorate (ED) Friday conducted searches at various locations in Kolhapur, Surat, Ahmednagar and Pune while investigating a money laundering case linked to bogus ponzi schemes and forex trading platforms of VIPS Group of companies operated by Vinod Tukaram Khute, his family members and associates, the agency said on Monday. Various incriminating documents, details of immovable assets worth crores, digital devices and bank funds were seized and frozen, during the action. The agency initiated a money laundering investigation in the matter based on the FIR registered at Bharti Vidhyapeeth Police Station in Pune against Vinod Khute, Santosh Khute, Mangesh Khute, Kiran Pitamber Anarase, Ajinkya Badadhe and others for duping people in the name of ponzi schemes and forex trading platforms promising exorbitant returns and collected more than Rs 100 crore. The agency has claimed that the Vinod Khute, who is residing in Dubai, is the mastermind of various illicit multi-level marketing and ponzi schemes, illegal trading, crypto exchange, wallet services through VIPS Group of companies, Global Affiliate Business, Kana Capital, Real Gold Capital etc. 'The search operations were conducted on the associates of Vinod Khute who were involved in enticing and luring the common public into investing in bogus or illicit schemes and illegal trading and activities of Vinod Khute. Funds collected through various shell entities were layered and ultimately withdrawn through cash and siphoned off to Dubai by conversion to Crypto/virtual assets or throughHawala channels,' the ED stated in a statement released on Monday. The anti-money laundering agency earlier conducted search operations and issued provisional attachment orders resulting in attachment and freezing of various bank balances, movable assets, immovable properties of Vinod Khute and his relatives and associates in India and Dubai amounting to Rs 75.42 crore, the ED officials said.
Hans India
15 minutes ago
- Hans India
FM Sitharaman directs CBDT to cut pendency in grievance redressal mechanisms
New Delhi: Finance Minister Nirmala Sitharaman on Monday directed the Central Board of Direct Taxes (CBDT) to significantly reduce pendency in grievance redressal mechanisms such as CPGRAMS and e-Nivaran pertaining to the department. She also emphasised that prompt and time-bound disposal of taxpayer grievances is essential for ensuring responsive governance. Chairing the Conclave of Principal Chief Commissioners of Income-tax here, the minister was apprised about key performance indicators. Out of the total 160,229 grievances (CPGRAMS and E-nivaran) for FY 2025-26, 1,31,844 grievances were resolved (up to 17.06.2025), leading to 82.28 per cent disposal. Refunds issued for FY 2025-26 (as on June 19) saw 58.04 per cent annual growth, showing better taxpayer services Rs 23,376 crore refunds issued on account of Order Giving Effects and Rs 10,496 crore refunds issued on rectification in FY2025-26. Out of the pending 5.77 lakh appeals, over 2.25 lakh appeals are targeted for completion in FY 2025-26, addressing over Rs 10 lakh crore of disputed demand, the minister was informed during the meeting. Around 4,605 cases were withdrawn after the monetary limits were raised in 2024, and in around 3,120 cases, appeals were not filed as the monetary limits for filing appeals were increased. Sitharaman noted that CBDT has undertaken several significant reforms in recent years, particularly in faceless assessment, e-verification system, tax exemptions & changes in slab rates , and digital service delivery. She called for further consolidation of these reforms to deliver tangible benefits to taxpayers. The Finance Minister directed all Principal Chief Commissioners of Income Tax to prioritise and accelerate the disposal of disputed tax demands that are currently pending before the faceless appellate authorities. This is aimed at reducing litigation backlog and ensuring timely resolution, thereby enhancing taxpayer trust in the system. She instructed that all departmental appeals falling below the revised monetary thresholds as notified in recent policy changes be identified and withdrawn within a period of three months. As per the announcements in the Union Budget 2024-25, the monetary thresholds for filing tax dispute appeals by the department were enhanced as follows: For Income Tax Appellate Tribunal (ITAT): Increased from Rs 50 lakh to Rs 60 lakh; for High Courts: Increased from Rs 1 crore to Rs 2 crore; and for Supreme Court: Increased from Rs 2 crore to Rs 5 crore. During the conclave, Sitharaman emphasised the need for the timely processing of tax refunds and the proactive resolution of taxpayer grievances.
Time of India
19 minutes ago
- Time of India
Govt OKs Rs70-cr road projects for 6 districts
Patna: Road construction minister Nitin Nabin on Monday approved 11 major road development projects under the State Plan Fund with a total estimated cost exceeding Rs 70 crore. These initiatives are expected to strengthen road infrastructure and improve connectivity in six districts of Bihar through road widening, drainage works, road repairs and construction of new routes. Tired of too many ads? go ad free now "The approved projects include significant developments in different districts," said Nabin. In Patna, key works include the widening and construction of Kidwaipuri Path, extending to Boring Canal Road and its connecting route; the construction of the road from Shaheed Gate (railway crossing) via Ramratan Singh College to the cremation ground path; widening of the road from Bazaar Samiti Mor to Saidpur Canal; the road from Sher Shah Gur Ki Mandi to Bhikhna Pahari Path; and the path from Gosai Tola Mor to Alpana Market via House No. 250. Another key addition is the construction of a road from Saristabad in Gardanibagh to the 70 Feet Bypass Road. In Motihari, the projects include drainage and paver block installation from Bariyarpur to Airport Chowk and median construction from Balua Flyover to the Town police station. Sitamarhi will see drainage development in several villages under Parihar block while Madhubani is set for repair works along the Rajnagar-Babubarhi-Khutauna route.
