PL Capital initiates Adani Power with Buy rating, Rs 259 target
PL Capital expects Adani Power’s 23.7GW expansion programme and higher-tariff PPAs to support a 21% EBITDA CAGR through FY29E, despite planned capex of Rs 2 lakh crore. The brokerage sees net debt/EBITDA falling to about 1.0x by FY32E.
What happened
PL Capital initiated Adani Power with a Buy and Rs 259 target, citing a 23.7GW thermal expansion, higher-tariff PPAs and strong projected EBITDA growth. The
Key facts
- Buy rating
- Target price: Rs 259 per share
- Stock price: Rs 202.50
- Implied upside: 28%
- Capacity: 18.3GW in FY26 to 41.9GW by FY32
What changed
PL Capital initiated Adani Power with a Buy and Rs 259 target, citing a 23.7GW thermal expansion, higher-tariff PPAs and strong projected EBITDA growth. The company plans Rs 2 lakh crore capex while targeting lower leverage by FY32.
Why this matters
Adani Power’s 23.7GW expansion and higher-tariff PPAs signal a major execution agenda, requiring disciplined delivery of roughly Rs 2 lakh crore in planned capex.
What to watch
- Quarterly capacity additions versus the 23.7GW pipeline and stated commissioning timelines.
- New PPAs, contracted tariffs, tenure, fuel pass-through clauses and counterparty credit quality.
- Net debt/EBITDA, interest coverage, debt maturity profile and any equity or promoter funding requirement.
- Coal availability, imported-coal exposure, rail capacity and changes in domestic fuel allocation policy.
- Merchant power prices, peak-demand shortages and plant load factor trends.