Adani Power Ltd.
NSE: ADANIPOWERAdani Power Ltd.: A 30-second snapshot
Adani Power, India's largest private thermal power generator, trades at Rs 232.30 — up 110.9% over the past 12 months and 64.4% over the past 3 months — sitting 8.6% below its 52-week high. At a PE of 35.09 (forward PE 27.53) and ROE of 20.91%, it ranks first among its 6-peer power sector group on both ROE and quality score (41/100), but carries a debt-to-equity ratio of 82.33 with a rising debt trend that stands as its most material structural overhang.
P/E
35.1
Forward P/E
27.5
ROE
+20.9%
Debt / Equity
82.33
Profit Margin
+23.7%
Div. Yield
—
5Y ROE > 15%
4/5
5Y FCF > 0
3/5
Quality
57/100
News
8 headlines · 4 positive · 1 negative
JP Power shares rise up to 20% after Adani Power acquires stake - TradingView
TradingView
ICICI Securities Downgrades Adani Power to Add from Buy; Price Target is INR233 - marketscreener.com
marketscreener.com
Adani Enterprises, Adani Energy, Adani Power shares in a bull run; fresh price targets - Business Today
Business Today
Adani Power Ltd stock (INE814H01011): India's thermal power giant eyes expansion - AD HOC NEWS
AD HOC NEWS
Adani Group stocks in demand; Ports, Power hit new highs; Green surges 6% - Business Standard
Business Standard
Recent context
- ·ICICI Securities downgraded its rating on Adani Power, shifting to 'Add' with a stated price target of Rs 233 — near the current price of Rs 232.30; this named-broker action was reported in May 2026.
- ·Adani Power acquired a stake in JP Power, driving JP Power shares up as much as 20%; the move signals inorganic capacity expansion in the thermal segment, adding integration and capital-allocation considerations to track.
- ·Adani Group stocks including Adani Power hit new 52-week highs in late May 2026 on broad group demand; news sentiment across 8 articles stands at 4 positive, 3 neutral, and 1 negative.
Strengths
- +Highest ROE among 6 tracked power sector peers at 20.91%, with ROE exceeding 15% in 4 of the past 5 years, indicating sustained returns on equity through the recovery cycle.
- +Earnings growth of 88.8% over 5 years — among the strongest in the sector — driven by margin expansion and financial restructuring, reflected in a profit margin of 23.66%.
- +Price above both the 50-DMA (Rs 201.26) and 200-DMA (Rs 157.38), with RSI at 58.02 in neutral territory and only 8.6% below the 52-week high.
- +PE of 35.09 sits at mid-range relative to sector peers (ADANIGREEN at 150.9x, ADANIENSOL at 80.4x), while forward PE compresses to 27.53x, reflecting earnings growth expectations in consensus.
Weaknesses
- −Debt-to-equity of 82.33 is exceptionally elevated for a non-financial power company and the trend is classified as rising; any deterioration in power purchase agreement revenues or merchant tariffs would amplify solvency pressure at this leverage level.
- −5-year revenue growth of -0.1% means the earnings recovery has been entirely margin-driven rather than volume or price-led; top-line stagnation over a 5-year horizon constrains the durability of the earnings trajectory.
- −FCF positive in only 3 of 5 recorded years and a quality score of 41/100 — ranked first in the peer group but still in the lower half of a 0-100 scale — indicate earnings quality concerns persist despite the profitability recovery.
- −Nearest major support level at Rs 144.65 is approximately 37.7% below the current price; a reversion to that level following the 64.4% 3-month rally would represent a material drawdown to the next established structural reference.
Open questions
- ?How much of the 88.8% five-year earnings growth reflects operational improvement versus one-time items from debt restructuring, and how sustainable is the current 23.66% profit margin if merchant tariffs normalise?
- ?With D/E of 82.33 rising over time and FCF positive in only 3 of 5 years, what proportion of the debt is long-term project financing with fixed repayment schedules versus refinancing risk sensitive to interest-rate movements?
- ?The nearest ICICI Securities price target of Rs 233 is essentially at the current price following their downgrade — does the analyst mean rating of 1.71 across 7 analysts (1-5 scale, lower = more constructive) adequately price in the leverage risk embedded in the balance sheet?
- ?Does the 64.4% 3-month price appreciation reflect a re-rating of power sector fundamentals broadly, or is it specific to Adani Power's corporate actions and group-level sentiment recovery?
Peer comparison: Power
Ranks 1 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| ADANIPOWER | Adani Power Ltd.You're viewing | 35.1 | +20.9% | 41 |
| Industry avg | across 5 peers | 58.8 | +11.8% | 21 |
| POWERGRID | Power Grid Corporation of India Ltd. | 14.2 | +16.5% | 37 |
| ADANIGREEN | Adani Green Energy Ltd. | 150.9 | +7.6% | 28 |
| ADANIENSOL | Adani Energy Solutions Ltd. | 80.4 | +9.7% | 23 |
| NTPC | NTPC Ltd. | 12.4 | +13.7% | 19 |
| TATAPOWER | Tata Power Co. Ltd. | 35.9 | +11.3% | 0 |
Technical state
Current price
₹232.30
SMA 50
₹201.26
SMA 200
₹157.38
RSI (14)
58.0 (neutral)
From 52w high
-8.6%
1Y return
+110.9%
3M return
+64.4%
50-DMA
Above
200-DMA
Above
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- highDebt-to-equity of 82.33 is exceptionally elevated for a non-financial power generation company; the debt trend is classified as rising, raising solvency exposure if power purchase agreement revenues or merchant electricity rates compress.
- medium5-year revenue growth of -0.1% indicates a flat top-line over the period; the 88.8% 5-year earnings growth reflects margin expansion and financial restructuring rather than organic revenue gains, limiting visibility on durable earnings quality.
- mediumNearest major structural support at Rs 144.65 is approximately 37.7% below the current price of Rs 232.30; with a 3-month gain of 64.4% and a 12-month gain of 110.9%, the gap between current price and established support is unusually wide relative to recent momentum.
- lowNews corpus covers only 8 articles, which is sparse for a large-cap power company; 1-year price-change data is null for all 5 listed peers, preventing a complete sector-relative momentum comparison.
Cross-section contradictions
- 5-year earnings growth of 88.8% and ROE of 20.91% — above 15% in 4 of the past 5 years — signal a strong profitability recovery, yet the quality score of 41/100 and persistently rising debt indicate that headline earnings strength has not translated into balance-sheet improvement.
- Price up 110.9% over 12 months and trading well above both the 50-DMA (Rs 201.26) and 200-DMA (Rs 157.38), yet the company carries a D/E of 82.33 with a rising debt trend — an extreme leverage position not commonly reflected in the buoyant price action.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 1 Jun 2026 · rotates through NIFTY 500 every ~5 days