InCred has reiterated its add rating on Adani Power with a target price of ₹649 per share, citing recent capacity wins and enhanced fuel security as key positives for the company’s medium-term growth. The stock is currently trading at ₹606.95.
The brokerage noted that Adani Power has secured letters of award (LoAs) for 3.2 GW of new thermal capacity — 2.4 GW in Bihar and 0.8 GW in Madhya Pradesh. It has also commenced operations at the Dhirauli coal mine, which InCred said will strengthen the company’s execution moat and improve fuel security.
Further, a new order placed with L&T, alongside prior orders with BHEL, underpins Adani Power’s revised target for thermal additions by FY32. InCred highlighted that these expansions are aligned with India’s power demand growth of 5–6% per year, amid industry-wide shortfalls in fresh thermal capacity.
The brokerage said these developments support its thesis of an 11% EBITDA compound annual growth rate (CAGR) for Adani Power over FY25–28, driven by capacity expansion, improved fuel availability and demand tailwinds.
Disclaimer: This article is based on brokerage views as cited. The views expressed are those of the brokerage and do not represent investment advice.
