Adani Power Ltd fundamental analysis highlights key financial metrics including market capitalization of ₹2,68,212 crore, PE ratio of 16.8, debt-to-equity ratio of 0.80, and return on equity of 5.71%. These figures reflect the company’s financial health and current market valuation.
Content:
- Adani Power Ltd Overview
- Adani Power Financial Results
- Adani Power Financial Analysis
- Adani Power Company Metrics
- Adani Power Stock Performance
- Adani Power Peer Comparison
- Adani Power Shareholding Pattern
- Adani Power History
- How To Invest In Adani Power Ltd Share?
- Adani Power Limited Fundamental Analysis – FAQ
Adani Power Ltd Overview
Adani Power Ltd is a leading Indian power generation company, operating thermal and solar plants. It’s part of the Adani Group, focusing on expanding energy infrastructure across India.
The company has a market capitalization of ₹2,68,212 crore and is listed on both the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). Currently, the stock is trading 22.4% below its 52-week high and 153% above its 52-week low.
Adani Power Financial Results
Adani Power Company Ltd financial results for FY24 show significant growth with sales increasing to ₹50,351 crore from ₹27,711 crore in FY22. Operating profit surged to ₹18,181 crore, reflecting strong operational efficiency and a substantial rise in net profit to ₹20,829 crore.
Revenue Trend:
Adani Power’s revenue trend has demonstrated robust growth, with FY24 sales at ₹50,351 crore, up from ₹27,711 crore in FY22. This upward trajectory reflects the company’s expanding market presence and improved operational efficiency.
Equity and Liabilities:
Equity and liabilities data are not provided, but given the significant net profit and operational improvements, the company’s equity base likely strengthened. The reduction in expenses compared to revenue suggests better financial health and potentially lower leverage.
Profitability:
Profitability improved markedly, with operating profit rising to ₹18,181 crore in FY24, up from ₹9,814 crore in FY22. The operating profit margin (OPM) also increased, indicating enhanced efficiency and effective cost management.
Earnings Per Share (EPS):
EPS saw a remarkable increase to ₹51.62 in FY24, up from ₹9.63 in FY22. This growth highlights strong earnings performance and reflects well on shareholder value.
Return on Net Worth (RoNW):
RoNW calculations aren’t provided directly but given the significant net profit growth and zero dividend payout, the RoNW is likely to have improved, indicating strong returns on shareholders’ equity.
Financial Position:
Adani Power’s financial position appears strong with increased net profit and operating profit margins. The absence of dividend payouts suggests reinvestment into the company, supporting future growth and financial stability.
Adani Power Financial Analysis
| FY 24 | FY 23 | FY 22 | |
| Sales | 50,351 | 38,773 | 27,711 |
| Expenses | 32,171 | 28,729 | 17,897 |
| Operating Profit | 18,181 | 10,045 | 9,814 |
| OPM % | 36 | 26 | 35 |
| Other Income | 9,930 | 4,267 | 3,975 |
| EBITDA | 28,111 | 14,312 | 13,789 |
| INTEREST | 3,388 | 3,334 | 4,095 |
| Depreciation | 3,931 | 3,304 | 3,118 |
| Profit Before Tax | 20,792 | 7,675 | 6,577 |
| Tax % | -0.18 | -39.77 | 25.32 |
| Net Profit | 20,829 | 10,727 | 4,912 |
| EPS | 51.62 | 24.57 | 9.63 |
| Dividend Payout % | 0 | 0 | 0 |
*All values in ₹ Crores
Adani Power Company Metrics
The company has a significant market cap of ₹2,68,212 crores with a current price of ₹695. It boasts a strong ROE of 57.1%, a P/E ratio of 16.8, and an impressive return of 141% over the past year, highlighting its solid performance.
Market Cap: With a market capitalization of ₹2,68,212 Cr, the company is a major player in its industry, reflecting investor confidence.
Book Value: The book value of ₹112 indicates the net asset value per share, providing a solid foundation for evaluating its intrinsic worth.
Face Value: The face value of ₹10.0 per share serves as the nominal value, important for calculating dividends and stock splits.
Turnover: An asset turnover ratio of 0.57 suggests the company generates ₹0.57 in revenue for every rupee of assets it holds.
PE Ratio: The price-to-earnings (P/E) ratio of 16.8 reflects the market’s valuation of the company’s earnings, indicating moderate investor expectations.
Debt: With a debt of ₹34,616 Crores, the company’s debt-to-equity ratio of 0.80 signifies a balanced approach to leveraging.
ROE: A return on equity (ROE) of 57.1% highlights the company’s ability to generate substantial profits from shareholders’ equity.
EBITDA Margin: An EBITDA margin of 38.4% showcases the company’s strong operational efficiency and its ability to manage expenses effectively.
Dividend Yield: Despite a dividend yield of 0.00%, the company’s robust growth suggests it reinvests earnings into further expansion rather than dividends.
Adani Power Stock Performance
Adani Power has demonstrated strong investment returns over various periods, with a 5-year return of 63%, a 3-year return of 101%, and an impressive 1-year return of 147%. These figures indicate robust growth and substantial recent gains for investors.
| Period | Return on Investment (%) |
| 5 Years | 63% |
| 3 Years | 101% |
| 1 Years | 147% |
Example:
If investor A had invested ₹1,00,000 in Adani Power, over five years, they would see a return of 63%, resulting in ₹1,63,000.
In three years, the return would be 101%, growing the investment to ₹2,01,000.
Over just one year, the return would be 147%, increasing the investment to ₹2,47,000.
Adani Power Peer Comparison
Adani Power, with a market cap of ₹263,853 Cr, outperforms Tata Power and JSW Energy in 1-year returns and PEG ratio. Despite its lower PEG of 0, it shows strong performance compared to peers, including Adani Green and NTPC.
| Sl No. | Name | CMP Rs. | Mar Cap Rs.Cr. | PEG | 3mth return % | 1Yr return % |
| 1 | NTPC | 397 | 385,152 | 3 | 9.61 | 86.01 |
| 2 | Power Grid Corpn | 334 | 310,966 | 2 | 7.82 | 83.74 |
| 3 | Adani Green | 1,805 | 285,854 | 6 | -1.02 | 91.92 |
| 4 | Adani Power | 684 | 263,853 | 0 | 7.68 | 141 |
| 5 | Adani Energy Sol | 1,097 | 131,781 | 9 | 3.9 | 32.53 |
| 6 | Tata Power Co. | 409 | 130,530 | 0 | -5.92 | 76.62 |
| 7 | JSW Energy | 654.15 | 114330.28 | 2.96 | 13.2 | 93.68 |
Adani Power Shareholding Pattern
The shareholding pattern of Adani Power shows a consistent increase in promoter holdings from 70.02% in September 2023 to 72.71% in June 2024. Meanwhile, FII holdings have gradually decreased from 17.51% to 14.73%, and retail participation remains stable at around 11%.
| Jun 2024 | Mar 2024 | Dec 2023 | Sept 2023 | |
| Promoters | 72.71 | 71.75 | 71.75 | 70.02 |
| FII | 14.73 | 15.91 | 15.86 | 17.51 |
| DII | 1.42 | 1 | 1 | 1 |
| Retail & others | 11 | 11 | 11 | 12 |
*All values in %
Adani Power History
Adani Power Limited was established in 1996 as part of the Adani Group, led by Gautam Adani. It began its journey by focusing on developing power plants to meet India’s growing energy needs. The company’s first major project was the Mundra Thermal Power Station in Gujarat, which became operational in 2009.
Over the years, Adani Power expanded its portfolio, acquiring and developing several other thermal power plants across India, including in states like Maharashtra, Rajasthan, and Karnataka. The company has grown to become one of India’s largest private power producers.
Adani Power also made strategic moves to diversify into renewable energy, although thermal power remains its core focus. Today, the company plays a significant role in India’s energy infrastructure and power generation sector.
How To Invest In Adani Power Ltd Share?
Investing in Adani Power Ltd shares is a straightforward process:
- Open a Demat Account: Start by opening a Demat and trading account with a reliable brokerage firm like Alice Blue.
- Complete KYC: Submit necessary documents for KYC verification.
- Fund Your Account: Deposit funds into your trading account.
- Buy Shares: Search for Adani Power Ltd shares and place your buy order.
Adani Power Limited Fundamental Analysis – FAQ
Fundamental analysis of Adani Power examines key financial metrics: Market Cap (₹2,68,212 crore), PE Ratio (16.8), Debt to Equity (0.80%), and Return on Equity (57.1%). These indicators provide insights into the company’s financial health, market valuation, and overall performance in the energy sector.
The market capitalization of Adani Power is ₹2,68,212 crore. This figure represents the total value of the company’s outstanding shares in the stock market, calculated by multiplying the current share price by the total number of shares outstanding.
Adani Power Limited is a subsidiary of the Adani Group and one of India’s largest private thermal power producers. It operates power plants across the country, generating electricity primarily from coal and contributing significantly to India’s energy sector.
Adani Power is owned by the Adani Group, founded and led by Gautam Adani. The company is part of this conglomerate, with Gautam Adani and his family holding a significant ownership stake and overseeing its operations.
The main shareholders of Adani Power include Adani Group entities, particularly Adani Enterprises Ltd., which holds a significant stake. Other major shareholders typically include institutional investors like mutual funds, foreign institutional investors (FIIs), and retail investors.
Adani Power operates in the energy sector, specifically in the power generation industry. It is involved in the production and distribution of electricity, primarily through thermal power plants, and plays a significant role in India’s energy infrastructure.
To invest in Adani Power shares, open a demat account with Alice Blue. Complete the KYC process and fund your account. Research the company thoroughly, then use the trading platform to place a buy order for the desired number of shares at your preferred price.
Determining if Adani Power India is overvalued or undervalued requires a comprehensive analysis of its financials, growth prospects, industry trends, and market conditions. Investors should consider metrics like the P/E ratio and PEG ratio, and compare them with industry peers and historical values for a balanced assessment.
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