Cantor has initiated coverage on Adani Power Ltd (APL) with an ‘Overweight’ rating and set a target price of ₹595, indicating a 16% upside potential from the current market price of ₹511.00. The brokerage sees capacity expansion, financial flexibility, and India’s continued reliance on thermal power as key factors driving growth.
Adani Power is India’s largest privately-owned thermal power producer, operating 11 thermal power plants and one solar power plant with a total effective capacity of 17.5 GW. It was also the first player in India to adopt advanced supercritical technology, which enhances efficiency. Cantor expects APL to add 12.5 GW of new capacity over the next five years, strengthening its leadership position in the sector.
Another key highlight is Adani Power’s improved balance sheet, with leverage at its lowest levels in several years, providing greater financial flexibility. Despite India’s focus on renewable energy, the brokerage believes the country will continue to rely on thermal power in a meaningful way as the economy expands and energy demand rises. Given its reasonable valuation, Cantor sees a favorable risk-reward balance at current levels, making Adani Power an attractive investment.
Disclaimer: Stock market investments are subject to risks. Investors are advised to conduct their due diligence before making any decisions.