Adani Electricity, a major participant in India’s electricity sector, has seen a huge increase in its share price in recent years. Investors are eager to see what the future holds for this energy behemoth. Will Adani Power continue to perform well, and is it a good stock to buy? In this post, we’ll look at the company’s financial performance over the last five years and assess its growth potential. We will also look at the company’s share price forecast for 2023 to 2030, and whether it can hit the much-touted 1000 INR mark by 2025.
Adani Power’s Q2 FY2023: Staggering 848% YoY Growth in Net Profit, Revenue Surges 84%
- Adani Power Ltd reported a significant surge in net profit, witnessing an 848% YoY growth, reaching Rs 6,594 crore for Q2, compared to Rs 696 crore in the same period last year.
- The revenue from operations also witnessed a substantial 84% increase, reaching Rs 12,991 crore in the reporting quarter, up from Rs 7,044 crore in the corresponding quarter of the previous year.
- The consolidated power sale volume for Q2 was 18.1 billion units (BU), reflecting a 65% increase, attributed to improved power demand and higher operating capacity.
- Continuing EBITDA for the quarter more than tripled, reaching Rs 4,336 crore, driven by higher sales volumes, lower fuel costs, and increased merchant tariffs.
- The depreciation charge for the second quarter rose to Rs 1,004 crore, compared to Rs 833 crore in Q2 of FY23, primarily due to the commissioning of the Godda power plant.
- Operationally, Adani Power and its subsidiaries achieved an average plant load factor (PLF) of 58.3% in the July-September period, significantly higher than the 39.2% recorded in the same period last year.
- The quarter’s operating performance includes the commissioning of the 1,600 MW Godda Ultra-supercritical thermal power plant, contributing to improved performance.
- Adani Power is positioned as India’s most reliable and competitive power generator, characterized by stable cash flows, high creditworthiness, secure revenue streams, and a strategically located and reliable fleet with low emissions per unit of generation, according to S B Khyalia, CEO of Adani Power.
Below are the trading platforms that you can use to purchase Adani Power shares:
➤ Zerodha
➤ Upstox
➤ Groww
➤ AngelOne
➤ ICICIDirect
| When | Maximum Price | Minimum Price |
| November 2023 | ₹417.96 | ₹363.44 |
| December 2023 | ₹431.75 | ₹375.44 |
As of November 2023, Adani Power’s share price is projected to reach a maximum of ₹417.96 and a minimum of ₹363.44. The forecast for December 2023 suggests a potential increase, with the share price ranging between ₹431.75 and ₹375.44.
The current market capitalization stands at ₹1,49,225 crore, with the share trading at ₹387 as of November 22nd, 2023. Investors and analysts will closely monitor the company’s performance and market dynamics to assess whether Adani Power can meet or exceed these projected price targets in the coming months.
| When | Maximum Price | Minimum Price |
| January 2024 | ₹440.56 | ₹383.10 |
| February 2024 | ₹449.56 | ₹390.92 |
| March 2024 | ₹458.73 | ₹398.90 |
| April 2024 | ₹445.37 | ₹387.28 |
| May 2024 | ₹438.79 | ₹381.55 |
| June 2024 | ₹454.58 | ₹395.29 |
| July 2024 | ₹450.04 | ₹391.34 |
| August 2024 | ₹468.04 | ₹406.99 |
| September 2024 | ₹486.76 | ₹423.27 |
| October 2024 | ₹477.22 | ₹414.97 |
| November 2024 | ₹491.53 | ₹427.42 |
| December 2024 | ₹503.82 | ₹438.11 |
Adani Power’s share price is anticipated to demonstrate a steady upward trajectory in 2024, based on the projected targets. In January, the expected range is between ₹440.56 and ₹383.10, followed by successive increases in the coming months. By December 2024, analysts predict a maximum price of ₹503.82 and a minimum of ₹438.11.
These forecasts indicate a positive outlook for Adani Power’s stock, with potential for significant growth throughout the year. Investors will likely closely monitor the company’s performance and broader market trends to assess whether these targets align with actual market movements and the company’s operational success.
| When | Maximum Price | Minimum Price |
| January 2025 | ₹513.90 | ₹395.31 |
| February 2025 | ₹527.07 | ₹405.44 |
| March 2025 | ₹547.63 | ₹421.25 |
| April 2025 | ₹536.89 | ₹412.99 |
| May 2025 | ₹521.25 | ₹400.96 |
| June 2025 | ₹544.71 | ₹419.01 |
| July 2025 | ₹534.03 | ₹410.79 |
| August 2025 | ₹550.55 | ₹423.50 |
| September 2025 | ₹569.82 | ₹438.32 |
| October 2025 | ₹584.63 | ₹449.72 |
| November 2025 | ₹599.25 | ₹460.96 |
| December 2025 | ₹614.23 | ₹472.48 |
The projected share price of Adani Power indicates a robust growth trend throughout 2025. Starting in January with a range of ₹513.90 to ₹395.31, the forecast suggests a consistent upward trajectory.
Subsequent months show an increasing pattern, with prices reaching ₹614.23 (maximum) and ₹472.48 (minimum) by December 2025. These optimistic projections indicate sustained investor confidence and potential market optimism surrounding Adani Power’s performance.
| Year | Maximum Price | Minimum Price |
| 2026 | ₹644.94 | ₹451.46 |
| 2027 | ₹709.43 | ₹496.60 |
| 2028 | ₹993.21 | ₹496.60 |
| 2029 | ₹859.92 | ₹429.96 |
| 2030 | ₹1,117.90 | ₹782.53 |
Adani Power’s share price is anticipated to continue its upward trajectory, reaching new highs from 2026 to 2030. The forecast suggests a gradual increase, with the maximum price projected to reach ₹644.94 in 2026 and steadily climb to ₹1,117.90 in 2030.
The minimum prices also show an ascending trend, ranging from ₹451.46 in 2026 to ₹782.53 in 2030.
These projections indicate sustained confidence in Adani Power’s growth potential over the next five years. Investors are likely to closely follow the company’s performance, market dynamics, and industry trends to validate and respond to these forecasts.
Financial Condition of Adani Power: Last 5 years
| 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|
| Sales Crore Rs |
23,884 | 26,468 | 26,221 | 27,711 | 38,773 |
| Expenses Crore Rs |
18,901 | 20,734 | 17,533 | 17,830 | 28,677 |
| Operating Profit Crore Rs |
4,983 | 5,734 | 8,688 | 9,881 | 10,096 |
| OPM % | 21% | 22% | 33% | 36% | 26% |
| Other Income Crore Rs |
2,448 | 323 | 1,909 | 3,908 | 4,216 |
| Interest Crore Rs |
5,657 | 5,315 | 5,106 | 4,095 | 3,334 |
| Depreciation Crore Rs |
2,751 | 3,006 | 3,202 | 3,118 | 3,304 |
| Profit before tax Crore Rs |
-976 | -2,265 | 2,289 | 6,577 | 7,675 |
| Tax % | -1% | 0% | 45% | 25% | -40% |
| Net Profit Crore Rs |
-984 | -2,275 | 1,270 | 4,912 | 10,727 |
| EPS in Rs | -2.55 | -5.90 | 3.29 | 12.73 | 27.81 |
| Dividend Payout % | 0% | 0% | 0% | 0% | 0% |
Adani Power has shown consistent growth and strong financial performance over the past five years, with increasing sales from 23,884 crore in 2019 to an impressive 38,773 crore in 2023. Despite fluctuating expenses, the company has maintained a healthy operating profit of 10,096 crore and an operating profit margin of 26%. Diversification of income streams and ongoing expansion projects, such as the 1,600 MW thermal power project in Godda, Jharkhand, and a power supply agreement for a 1,230 MW plant in Madhya Pradesh, highlight Adani Power’s commitment to growth. With its solid track record, strategic initiatives, and promising future outlook, Adani Power presents an attractive investment opportunity for those seeking long-term value and growth in the power sector.
Motilal Oswal recommends buying Adani Power shares, setting a target price of Rs 255, as they express their bullish outlook on the stock.
FAQS
As of November 22, 2023, the share price of Adani Power is 387 INR.
As per some analysts, the target share price for Adani Power for 2025 is around 650 INR.
Some factors that can affect the share price of Adani Power include company financials, industry trends, government policies, global economic conditions, and market sentiment.
Has Adani Power shown any growth in the past few years?
Yes, Adani Power has shown growth in the past few years, with an increase in revenue and net profit.
What is the revenue growth rate of Adani Power?
Adani Power has demonstrated a stronger growth trend with an average growth rate of 14% over the past few years.
What is the PAT margin of Adani Power?
The PAT (Profit After Tax) margin of Adani Power has varied over the past few years, with a maximum of 3.29% in 2022.
What is the profit growth rate of Adani Power?
The profit growth rate of Adani Power has been positive in the past few years, with an average growth rate of around 63%
What is the dividend payout of Adani Power?
Adani Power has not paid any dividends in the past few years.
Investment decisions should be made based on personal financial goals, risk tolerance, and market research. It is advisable to consult a financial advisor before investing in any stocks, including Adani Power.
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Conclusion
In conclusion, Adani Power has exhibited positive financial performance and growth prospects in recent years. The company has consistently delivered impressive profit growth at a CAGR of 48.1% over the last five years, indicating its strong operational capabilities.
Additionally, Adani Power boasts a solid track record of return on equity (ROE) with a three-year average of 33.8%, demonstrating effective utilization of shareholders’ funds. Notably, the company has successfully reduced its working capital requirements from 103 days to 74.2 days, indicating improved efficiency in managing its resources. Moving forward, Adani Power’s focus on maximizing and securing power sales through long-term power purchase agreements positions it for further growth and stability in the power sector.
The current PE ratio is 7.35, and by bagging a smart meter installation project from Maharashtra Govt, Adani Power seems to be on a solid track to post amazing results in the future.
At the time of writing, I do not hold any share of Adani Power.
What did we learn?
- 1 Adani Power’s Q2 FY2023: Staggering 848% YoY Growth in Net Profit, Revenue Surges 84%
- 2 How to purchase Adani Power shares?
- 3 Adani Power Share Price Prediction: 2023 to 2030
- 4 Financial Condition of Adani Power: Last 5 years
- 5 Motilal Oswal on Adani Power share price target
- 6 FAQS
- 6.1 What is the share price of Adani Power?
- 6.2 What is the target share price of Adani Power for 2025?
- 6.3 What factors can affect the share price of Adani Power?
- 6.4 Has Adani Power shown any growth in the past few years?
- 6.5 What is the revenue growth rate of Adani Power?
- 6.6 What is the PAT margin of Adani Power?
- 6.7 What is the profit growth rate of Adani Power?
- 6.8 What is the dividend payout of Adani Power?
- 6.9 Should I invest in Adani Power shares?
- 7 Conclusion
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