Adani Power: A Buy Call – BusinessLine

Adani Power Ltd (APL) has seen a significant improvement in its performance, with its average PLF increasing from 48% in FY23 to 72% in H1FY25, the highest level in seven years. This improvement is due to rising power demand, lower imported coal prices, and better domestic coal availability. In FY24, APL saw a 29.9% year-on-year growth in revenue to ₹50,351 crore and an 81% increase in EBITDA to ₹18,181 crore. Similarly, in H1FY25, revenue and EBITDA grew by 17.9% and 32.1% respectively. The surge in power demand in India, driven by increased manufacturing activities and the growing use of white goods and gadgets in households, highlights the need for more base load thermal power capacity. APL, as India’s largest private pure-play thermal power producer, is well-positioned to meet this demand with its capacity expansion plans. With these factors in play, we recommend a Buy rating for APL with a revised price target of ₹806 based on a DCF valuation of 13.8X FY27 EV/EBITDA.